1. ECONOMIC CLASSIFICATIONS Advanced course Day 1 – third morning session ISIC Rev.4 and NACE Rev.2
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

2. ISIC = International Standard Industrial Classification of all economic activities
NACE = Nomenclature statistique des Activités économiques dans la Communauté Européenne

3. ISIC and NACE Agenda Purpose and nature Historical background
Structure and coding
Tools for interpretation

4. ISIC and NACE Purpose and Nature
Classifications of Activities
as they usually are combined
Camping site, supermarket

5. ISIC and NACE Purpose and Nature
“Similar” activities are grouped together in the same classes (homogeneous to activity)
What is similar Criteria:
>>Input (NACE 16: Manufacture of wood/products of wood)
>>Process (NACE 24.5: Casting of metals) printing, knitting
>>Output (NACE 32.4: Manufacture of games and toys)

6. What is not similar, not used as criteria:
Purpose and Nature
What is not similar, not used as criteria:
Legal organization type
Types of markets (market / non-market)
Size
Region
…………………………………………

7. Purpose and Nature
Use criteria when building ISIC/NACE:
No strict application of the three criteria e.g. by NACE-level  would cause categories that are not useful e.g. by process in manufacturing. (knitting cars)
So a pragmatic approach
how the world sees it!!publishers

8. Purpose and Nature
Use ISIC/NACE:
In the past only for statistics, but activity classifications are more and more used for administrative purposes, laws, rules, licenses
registration useful for NSI’s!!.

9. ISIC International Standard Industrial Classification of All Economic Activities
History
1900: One Classification for occupations and activities of enterprises 
Labour market flexibility
Industry classification:
First version: 1948; Rev.1: 1958; Rev.2: 1968; ISIC Rev.3: 1989; ISIC Rev.4: 2006
First mining, manufacturing.

10. 0 - Agriculture, Forestry, Hunting and Fishing
02 - Forestry and Logging
03 - Hunting, Trapping and Game Propagation
04 - Fishing
1 - Mining and Quarrying
11 - Coal Mining
12 - Metal Mining
13 - Crude Petroleum and Natural Gas
14 - Stone Quarrying, Clay and Sand Pits
19 - Other Non-Metallic Mining and Quarrying
2-3 - Manufacturing
20 - Food Manufacturing Industries, except Beverage Industries
21 - Beverage Industries
22 - Tobacco Manufactures
23 - Manufacture of Textiles
24 - Manufacture of Footwear, other Wearing Apparel and Made-Up Textile Goods
25 - Manufactures of Wood and Cork, except Manufacture of Furniture
26 - Manufacture of Furniture and Fixtures
27 - Manufacture of Paper and Paper Products
28 - Printing, Publishing and Allied Industries
29 - Manufacture of Leather and Leather and Fur Products except Footwear and other Wearing Apparel
30 - Manufacture of Rubber Products
31 - Manufacture of Chemicals and Chemical Products
32 - Manufacture of Products of Petroleum and Coal
33 - Manufacture of Non-Metallic Mineral Products, except Products of Petroleum and Coal
34 - Basic Metal Industries
35 - Manufacture of Metal Products, except Machinery and Transport Equipment
36 - Manufacture of Machinery, except Electrical Machinery
37 - Manufacture of Electrical Machinery, Apparatus, Appliances and Supplies
38 - Manufacture of Transport Equipment
39 - Miscellaneous Manufacturing Industries
4 - Construction
40 - Construction
5 - Electricity, Gas, Water and Sanitary Services
51 - Electricity, Gas and Steam
52 - Water and Sanitary Services
6 - Commerce
61 - Wholesale and Retail Trade
62 - Banks and other Financial Institutions
63 - Insurance
64 - Real Estate
7 - Transport, Storage and Communication
71 - Transport
72 - Storage and Warehousing
73 - Communication
8 - Services
81 - Government Services
82 - Community Services
83 - Business Services
84 - Recreation Services
85 - Personal Services
9 - Activities not adequately described
90 - Activities not adequately described
· E - Water supply; sewerage, waste management and remediation activities
36 - Water collection, treatment and supply
37 - Sewerage
38 - Waste collection, treatment and disposal activities; materials recovery
39 - Remediation activities and other waste management services
· F - Construction
41 - Construction of buildings
42 - Civil engineering
43 - Specialized construction activities
· G - Wholesale and retail trade; repair of motor vehicles and motorcycles
45 - Wholesale and retail trade and repair of motor vehicles and motorcycles
46 - Wholesale trade, except of motor vehicles and motorcycles
47 - Retail trade, except of motor vehicles and motorcycles
· H - Transportation and storage
49 - Land transport and transport via pipelines
50 - Water transport
51 - Air transport
52 - Warehousing and support activities for transportation
53 - Postal and courier activities
· I - Accommodation and food service activities
55 - Accommodation
56 - Food and beverage service activities
· J - Information and communication
58 - Publishing activities
59 - Motion picture, video and television programme production, sound recording and music publishing activities
60 - Programming and broadcasting activities
61 - Telecommunications
62 - Computer programming, consultancy and related activities
63 - Information service activities
· K - Financial and insurance activities
64 - Financial service activities, except insurance and pension funding
65 - Insurance, reinsurance and pension funding, except compulsory social security
66 - Activities auxiliary to financial service and insurance activities
· L - Real estate activities
68 - Real estate activities
· M - Professional, scientific and technical activities
69 - Legal and accounting activities
70 - Activities of head offices; management consultancy activities
71 - Architectural and engineering activities; technical testing and analysis
72 - Scientific research and development
73 - Advertising and market research
74 - Other professional, scientific and technical activities
75 - Veterinary activities
· N - Administrative and support service activities
ISIC Rev.4
ISIC rev

11. NACE (Nomenclature statistique des Activités économiques dans la Communauté Européenne)
History of NACE
Elaboration of NICE between 1961 and Nomenclature des Industries établies dans les Communautés Européennes
Elaboration of NACE in 1970 (but not internationally linked and data translated from national classifications)
Development of NACE Rev.1: 1993
Based on ISIC: strong decision taken in the 80’s
Same structure, more details
International harmonization respected
Possible national versions
Legal base (regulation)
Working group NACE: since 1986
Current version NACE Rev.2: 2008

12. NACE (Nomenclature statistique des Activités économiques dans la Communauté Européenne)
NACE regulation
All statistics with data on economic activities should use NACE or a derived national level
Supplementary national levels okay, but same frame (concepts, definitions) and same structure
National coding system may be different
National versions approved by the Commission
Pending problem: NACE-structure not fit for all economic studies
Other structures and aggregation needed
Automotive-, energy-, ICT-sector.

13. NACE Rev. 2 Aggregated structures for national accounts
Fully integrated in ISIC/NACE structure
High level aggregation (10 or 11 categories)
Intermediate aggregation (38 categories)

14. NACE Rev. 2

15. International situation activity classifications
BIK ÖNACE NAF SBI NAICS NACE NACE-BEL ANZSIC JSIC ISIC CAE Toimialaluokitus SNI CRIC ஒகறஐஊ
Holding
Manufac-
turing of
bikes
Transport
Computer
Sale of bikes

16. ISICNACENational SIC
ISIC=UN XXXX
NACE=EU XX11,XX12,XX21,XX22
NACE-BEL=Belgium XX11.1
ÖNACE=Austria XX11.2
SBI=Netherlands XX11.3
BIK Chambres of Commerce XX11.22
Etc=Etc

17. National classifications
 Today
UN-classification
related
NAICS (US)
derived
EU-classification
ANZSIC (AUS/NZ)
National classifications
Associated countries

18. Structure and coding of NACE Rev. 2
21 Sections : 1 letter
88 Divisions : 2 digits
272 Groups : 3 digits
615 Classes : 4 digits
Shared with ISIC Rev.4 02
Schéma d’organisation : emboîtement à tous les niveaux, comme dans la nomenclature actuelle,
L’emboîtement est visible dans le code, mais les lettres des sections ne sont pas rappelées devant les chiffres
La NACE est codifiée comme la CITI (classification internationale type des industries), mais avec un point entre le 2 et le 3ème chiffre
Disparition des sous-sections (propres à la NACE, elles n’existaient qu’en Industrie)
Les groupes et les classes NACE proviennent de l’éclatement de groupes et de classes CITI
Amélioration de la codification nationale : on lit directement la classe NACE dans la sous-classe NAF
02.1
Shared in all member states
02.10

19. Increased detail
NACE Rev. 1.1
NACE Rev. 2
ISIC Rev. 4
Divisions 62 88
Groups
224
272
238
Classes
514
615
419
Manufacturing section
103 95 71
242
230
137
Other sections 39 64
121
177
167
385
282

20. NACE Rev. 2 Tools for interpretation of NACE:
Explanatory notesexample
Indexes
Computer assisted coding
Case law   rulings example
Strict links with CPA (*)
Hierarchy : NACE – CPA – CN
Additional correspondence table example
(*) not always true

21. 11.02 Manufacture of wine from grape
Explanatory note
11.02 Manufacture of wine from grape
This class includes:
- manufacture of wine
- manufacture of sparkling wine
- manufacture of wine from concentrated grape must
This class also includes:
- blending, purification and bottling of wine
- manufacture of low or non-alcoholic wine
This class excludes:
- merely bottling and labelling, see (if performed as part of wholesale) and (if performed on a fee or contract basis)

22. Case law

23. Link with CPA

24. Thank you!