1. Sub-Regional Workshop on International Merchandise Trade Statistics Compilation and Export and Import Unit Value Indices 21 – 25 November Guam Reef & Olive Spa Resort, Tamuning, Guam COMMODITY CLASSIFICATION Presentation by Nilima Lal Economic Statistician, Pacific Community

2. The need for a commodity classification
The use of commodity classification:
Identifies commodities
Regional and international consistency
Provides the way for various customs, statistical and analytical purposes and trade negotiations.

3. The different classifications
Classifications used for IMTS
Harmonized Commodity Description and Coding System (HS)
Standard International Trade Classification (SITC)
Classification by Broad Economic Categories (BEC)
Nomenclatures have also been elaborated with the primary aim of classifying productive economic activities:
International Standard Industrial Classification of All Economic Activities (ISIC)
Central Product Classification (CPC)
The need for different classifications:
Analytical needs vary

4. Chapters arranged into 1,224 HeadingsHS
Based on the nature of the commodity.
Latest version is the HS12 which comprises:
Example
21 Sections
Split into 96 Chapters
Chapters arranged into 1,224 Headings
SECTION I
LIVE ANIMALS; ANIMAL PRODUCTS
CHAPTERS 1-5
Chapter 1
Live animals
HEADINGS
Heading 0103
Live swine

5. SITC
Takes into account the stage of production and is considered more suitable for economic analysis
Latest version is the Revision 4 which comprises:
All goods in HS except monetary gold, gold coin and current coin.
It contains 2970 basic headings grouped into 1023 subheadings
Subheadings are assembled in 262 groups, 67 divisions and 10 sections:
SECTIONS DESCRIPTION
0 Food and live animals
Beverages and tobacco
Crude materials, inedible, except fuels
Mineral fuels, lubricants and related materials
Animal and vegetable oils, fats and waxes
Chemicals and related products, not elsewhere specified
Manufactured goods classified chiefly by material
Machinery and transport equipment
Miscellaneous manufactured articles
Commodities and transactions not classified elsewhere in SITC

6. BEC
It converts trade data compiled into end-use categories that are meaningful within the framework of SNA. The three basic classes of goods in SNA are:
capital goods
intermediate goods
consumption goods.
Latest version is the Revision 3 which comprises 19 basic categories and 7 sections:
SECTIONS DESCRIPTION
1. Food and beverages
2. Industrial supplies not elsewhere specified
3. Fuels and lubricants
4. Capital goods (ex transport equipment), and parts and accessories thereof
5. Transport equipment, and parts and accessories thereof
6. Consumer goods not elsewhere specified
7. Goods not elsewhere specified
These sections are broken down, as applicable, by other criteria such as primary and processed goods, durable, semi-durable, and non-durable goods, etc.

7. ISIC PACSIC Not a product classification.
Classifies statistical units, such as establishments or enterprises, according to the principle economic activity in which they engage:
- principal industry of origin of products: acceptable approximation of export commodity but difficult for imports
Latest version is Revision 4 which comprises:
tabulation categories identified by letters, called “sections”
the 2‑digit categories “divisions”
the 3‑digit categories “groups”
4‑digit categories “classes” Sub-classes

8. CPC
Combines the main classification principles of ISIC with criteria applied in HS
Latest is Version 2 which comprises:
10 sections
71 divisions
324 groups
1,267 classes and
2,738 subclasses.
Trade data expressed in terms of CPC facilitates its use in economic analysis including in the assessment of the impact of external trade on the consumption

9. Relationship between different classifications
Activity classification
Product classification
Mainly use for production
Mainly use for merchandise trade
ISIC
CPC
SITC
BEC
For trade analysis
For data collection and analysis HS

10. Correspondence tables
All classifications are closely related:
Correspondence tables describe the relationship between
different classifications e.g. HS to CPC
different versions of the same classification e.g. HS07 to HS12
The United Nations Statistics Division website provides access to the classifications relevant to international merchandise trade statistics, including correspondence and conversion tables
Onions
CPC 01253 HS
ISIC 0113
SITC
054.51
BEC 112*

11. Recommendation for PICTs
HS for the collection, compilation and dissemination of IMTS
In addition
SITC for the dissemination and analysis of trade statistics
according to user requirements
BEC for retained imports - use in National Accounts
Use most current versions of the classifications