The introduction of new classifications of economic activities and products in Ukraine Workshop on International Classification Chisinau March 2013

Harmonization of national classifications National classification of economic activities in Ukraine is based on NACE (in some cases, the national level has been detailed at lower levels) National statistical classification of products based on CPA, in unchanged and fully corresponding form Nomenclature of industrial products based on the PRODCOM - with additional 2 digits at the national level National customs classification of goods is based on HS / CN and has additional 2 digits at the national level

ClassificationsNationalYearsInternational Classification of economic activities NACE 5 digits, 271 position at the national level NACE (rev.1) NACE digits, 106 position at the national level NACE (rev.1.1) NACE digits since 2011NACE (rev.2) Statistical Classification of Products SCP 6 digits CPA SCP digits since 2012CPA-2008 Nomenclature of industrial products NIP 9 digits CPA, PRODCOM, Modelling classification of the CIS NIP 9 digits since 2013CPA-2008, PRODCOM

Implementation of new classifications The revised version of the International Standard Classification of Economic Activities in the state statistical activity (memorandum of the State Statistics Committee, № 120) The organizational structure of the Project of implementation of the new classification is developed Schedule of development and implementation of the new classification is developed Responsible agencies and actions defined for the successful implementation of the classification

Implementation of new classifications of activities and products during It was based on two main principles: –Reduction of response burden of enterprises –All activities were done using existing tools and capabilities Organization of the implementation work

The process is divided into three main phases : Development of national versions of the classifications, discussions, agreement and approval within the existing regulatory processes Introduction of a new classification of economic activities in the statistical business register Implementation of new classifications in statistical surveys and SNA, back-calculations of statistics

Organization of the implementation work Three independent groups of experts from statistical departments were formed, which were responsible for connected activities related to the classification change at various phases of the implementation plan: Group on classifications Group on registers Group on economic statistics

Goal of the Group on classifications Development and coordination of the national classification of economic activities within the statistical system and with a wider range of users outside the system Adoption of the new activity classification within the existing regulatory process Preparation of the rules of classification, descriptions of the different levels of classification and criteria for the classification of activities Development of the statistical classification of products and the related industrial classifications and nomenclatures, necessary for statistical surveys

Goal of the Group on registers Preparation of the tools needed for coding of economic activities to all units in the Statistical Business Register (recoding and conversion tables) Preparing and conducting special surveys for units to be recoded in the statistical registers Evaluation of the quality of recoding

Goal of the Group on economic statistics Coordinated transition to the new classifications with minimal losses in terms of the continuity of statistical information Implementation of the new classifications by taking into account transitional periods in related statistical areas Definition of statistical indicators and periods for data analysis using the two classifications – new and old Determination of the length of back-calculations for each field of statistics, definition and selection of the method of back- calculations

First phase A first version of the national classification of economic activities prepared for consideration in the statistical system Developed criteria for developing the national level for the classification The second version of the national classification of economic activities submitted for public discussion outside of the statistical system Classification of economic activities as a national standard is approved (items of the classification structure are standardized, memorandum )

First phase Methodological framework and description of how to classify items using the Classification of Economic Activities were prepared for discussion Methodological basis for building conversion matrix were prepared Ensuring the possibility for dual coding of activities of enterprises in business registers The basis for the back-calculations were prepared

Second phase Quantitative assessment of the scale of recoding of units in the statistical register Priorities and methods of recoding were defined Depending on the type of conformity (1:1, n:1, 1:n, m:n): automated recoding (65,6%) using structural statistics (5,8%) special examinations of the registry (2,5%) according to surveys (3,6%) by using several available sources (15,1%) probabilistic (7,4%)

Second phase Statistical classification of products based on CPA developed and approved Nomenclatures of industrial products and other associated sectorial classifications were developed Service to identify types of economic activities was prepared and placed on the main page of the website Evaluation and selection of back-calculation methods was performed

Third phase Recoding for all units of the statistical register using the two classifications was completed ( for 2010, 2011, 2012) Estimation of the quality of recoding was finalized List of primary and calculated indicators for recalculations and / or dual coding of statistical indicators Method of back-calculation for statistical indicators defined: –Micro-method –Macro-method

Third phase Special database (conversion's matrix) for each level of classification with coefficients was formed: by the number of enterprises by turnover by the number of employed

Organisation of the implementation work Statistics by economic activity compiled in 2012 in the two classifications (NACE-2005 and NACE-2010) Since 2013, all short-term statistics and indicators of structural statistics for 2012 have been compiled and published in the new classification (NACE-2010) Dual coding of the statistical register foreseen to continue until 2015

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