1. 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

2. 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

3. 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.

4. 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

5. 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

6. 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

7. 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

8. 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.

9. 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)

10. 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

11. 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)

12. 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

13. 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

14. Use of PRODCOM data Dissemination of industrial products’ data:
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

15. 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

16. 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

17. 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”.

18. 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: 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

19. 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!

20. Hungarian dissemination of ITO data
Dissemination database: 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

21. Thank you for your attention!