ECONOMIC CLASSIFICATIONS Advanced course Day 4 – morning session PRODCOM 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

PRODCOM – PRODuction COMmunautaire” (Community production) It is the title of the EU production statistics of manufactured products: - PRODCOM is a system for the collection and dissemination of statistics on the production of manufactured products. - It is based on a product classification called PRODCOM List

The Regulatory framework Council Regulation 3924/91 Commission Regulation 912/2004 Annual Commission Regulation on the PRODCOM List Legal basis: Regulation (EEC) No 3924/91 of 19 December 1991 on the establishment of a Community survey of industrial production - (PRODCOM Regulation). The List is revised every year, with a Commission Regulation to provide the legal basis.

PRODCOM PRODCOM is an annual survey designed to collect data and produce statistics regarding the industrial production. The industrial production has to be recorded according to the product headings of the PRODCOM List during the reference period

Production types Sold Production: products produced and sold by an enterprise Total Production: the actual production which has been carried out during the reference period, irrespective of whether sold or put into stock or used for further processing Industrial services: not physical products, but work carried out on manufactured products by a sub-contractor

Variables to be collected Sold production (S): the physical volume and the value of production sold during the survey period Total production (T): the physical volume of production the physical volume and the value of sold production Total production (V): the physical volume of actual production during the survey period, including any which is incorporated into the manufacture of other products within the same enterprise

Variables to be collected Total production (V) cont.: Total production „V” is only required for those products that are likely to be used for further processing (about 20% of all products). Because products that are not sold cannot easily be valued, only the volume of total production is collected. Industrial services (I): in value e.g. the fee received from the principal

Coverage NACE section „C” + divisions 07 and 08 of section „B” The theoretical aim of PRODCOM is to achieve 100 % coverage of each product, in other words, to report the full amount of production of each product. but, for practical reasons: the reporting country must record at least 90% of the value and volume of production carried out by enterprises on its territory; Only enterprises with more than 20 employees should be surveyed. However the Regulation stipulates that the national survey methods should ensure 90% coverage of production in each 4-digit NACE class of section „C” and divisions 07,08.

PRODCOM List 2016 More than 3800 headings relating to manufactured products 8-digit code Digits 1-4 refer to the NACE class (240 classes) Digits 1-6 refer to a CPA heading (1500 subcategories)

PRODCOM headings are derived from NACE/CPA Organisation of the list The list is divided into „Classes” corresponding to the NACE classes. Within the individual classes, the PRODCOM headings are grouped according to the corresponding CPA headings. Heading characteristics the PRODCOM code is an eight-digit code XX.XX.YY.ZZ NACE class classification of a heading within this CPA CPA sub-category

External trade nomenclature references Each PRODCOM heading normally corresponds to one or more Combined Nomenclature (CN) headings CN is applicable for the interpretation of PRODCOM List (there is no explanatory notes to PRODCOM List)

PRODCOM List (cont.) Additional remarks: column “P”: indicates the production type (variable): what should be reported (S, T, V, I) headings of type I concern industrial services: treatment, repairs and maintenance, and assembly work To be recorded the value of the service, i.e. the fee paid column “Reference to notes” provides information about the statistical treatment of the heading; A1, B1, B2, B3, C1, C2, C3 = specific definition for some steel and iron products (division 24) C = considerations on metal coating (division 25) M = considerations on military products (division 20) O = Considerations on the links to CN for ships (see specific notes for division 30) P = Considerations on printing products (see specific notes for division 18) R = Provisions on newly constructed ships (see specific notes for division 30) S1, S2 = Considerations on sub-contracting

PRODCOM List (cont.) Column "PRODCOM" z = Component of a Z list aggregation * = Modified heading of the List compared to the previous year @ = Unit differs from CN unit

Use of PRODCOM data Dissemination of industrial products’ data: http://ec.europa.eu/eurostat/web/prodcom/data/database Users are highly interested in detailed data PRODCOM data for other statistical domains: Weights for producer price statistics (PPI) Production data for supply-use table (input-output table) Linkage of industrial productions data with external trade data via correspondence table CN-PRODCOM

National version of PRODCOM - possibility for each MS to add more detail to the PRODCOM list in respect with the stipulations of CEE Regulation - for national needs (eg. professional associations) PRODFRA = the French version of PRODCOM ca. 500 additional heading

Hungarian version of PRODCOM: ITO ITO = Industrial Product Classification Based on PRODCOM List List of products for sections „B”, „C”, „D” and „E” of NACE Rev.2 (mining, manufacturing and energy) from division 05 to 38 National breakdowns (NACE 35 etc.) Supplement measurement units ca. 230 additional headings or units

Hungarian PRODCOM survey Annual survey for the whole product list, whole industry Monthly survey for energy sector for the calculation of volume index Scope of the survey: - industrial enterprises (principal activity: „B”, „C”, „D”, „E”) - enterprises classified out of industry, but realized significant industrial turnover Coverage: 90% in each NACE class of sections „B”, „C”, „D”, „E”.

Hungarian PRODCOM survey (2) Industrial enterprises: 90% coverage in each NACE class of „B”,”C”, ”D”, „E”: each NACE class: at least 20 employees – full scope some NACE classes: 11-19 employees some NACE classes: 5-9 employees Enterprises classified out of industry: more than 500 million HUF turnover from industrial activity KAU with principal activity „B”, „C”, „D”, „E” of NACE Hypermarkets

Hungarian PRODCOM survey (3) Electronic questionnaire (ELEKTRA) Customized questionnaire: ITO headings reported in the previous year are pre-printed Variables: all variables for all headings: total production in volume sold production in volume and value, of which: export and domestic sale in volume and value; consumer tax See Questionnaire!

Hungarian dissemination of ITO data Dissemination database: www.ksh.hu/Data/Dissemination database/Economic branches/Industry/Industrial products KSH Statinfo v39 | Theme selection Browse by products Data on subcontracting Preliminary data are published in June Final data are published in September

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