1. United Nations Statistics Division Status of CPC Ver.2.1 work

2. History  The Expert Group at its meeting in 2011 agreed to undertake an update of the Central Product Classification (CPC) during the scheduled review for 2012.  It was emphasized that this would be an “update” only, not a “revision”, focusing on improving the detail and structure of the classification in selected areas only and at low levels of the classification only.

3. History  A detailed proposal listing of the changes to be made to the CPC has been provided to the Statistical Commission in 2012  A complete draft of the finalized CPC Ver.2.1 structure and explanatory notes have been presented to Statistical Commission for adoption in 2013.

4. Sources  Changes in the CPC were based on (a) a regular assessment of the impact of the 2012 amendments to the Harmonized Commodity Description and Coding System (HS), which forms the building blocks for sections 0-4 of CPC; (b) an assessment of the linkages between CPC and the Standard International Energy Product Classification (SIEC), with a view to improve the comparability of the two classifications (c) a proposal by the Food and Agriculture Organization of the United Nations (FAO) to adapt the detail of CPC in selected areas of agriculture and food products to allow for CPC to be used directly for data collection in agricultural statistics; and (d) feedback received on CPC issues in the Statistics Division Classifications Hotline. No additional proposals have been received during the review period.

5. Problems  The conclusion of a number of issues related to energy statistics was postponed and will be taken up again for the next scheduled review in 2017.  This is a result of detailed discussions that have revealed definitional problems that need to be clarified with users of the energy product classification and may require adjustments within that classification.  Making changes to the CPC based on the current definitions of the energy product classification would have been premature and could have resulted in unnecessary deviations from established CPC standards.

6. List of issues  A.Issues requiring conceptual discussion 9 - Separation of aquaculture primary products and capture fishery primary products (FAO) 15 - Expand detail of CPC section on forest products according to the structure used by FAO (FAO) 29 – Biofuels (SIEC, FAO, HS) 35 - Introduce additional detail for recyclable materials (Voorburg) 36 - Align categories for R&D in CPC with Frascati Manual categories (Voorburg) 37 - Clarify inclusion of “implementation” in management consultancy (Voorburg)

7. List of issues  B.Issues requiring clarification (details, links, formulation) 1 - Cereals (FAO) 2 - Chicory roots (FAO) 11 - Introduce consistent and more detailed structure in biological groupings for fish (FAO) 14 - Other aquatic plants and animals (FAO) 18 - Sanitary towels etc. (HS) 20 - Biodiesel (HS, SIEC) 27 - Improve link from CPC to SIEC (SIEC) 28 - Improve link from SIEC to CPC (SIEC) 32 - Terminology for coal (SIEC) 33 - Uranium, Plutonium, Thorium and other nuclear materials (SIEC) 34 - Smoked aquatic invertebrate products (HS) 38 - Increase detail for telecommunications products (Voorburg) 39 - Introduce distinction between domestic and international courier service (Voorburg) 40 - Introduce separate subclasses for household moving and storage vs. business moving and storage, i.e. splitting CPC 65115 (Voorburg) 42 - Logistics (Voorburg)

8. List of issues  C.Issues that seem straightforward 3 - Livestock, equines (FAO) 4 - Eggs (FAO) 5 - Kola nuts (FAO) 6 - Vegetable oils (FAO) 7 - Groats and pellets (FAO) 8 - Fertilizers (FAO) 10 - Separation of live fish and fresh or chilled fish in primary production (FAO) 12 - Introduce consistent and more detailed structure in biological groupings for crustaceans (FAO) 13 - Molluscs and other aquatic invertebrates (FAO) 16 - Non-Chemically defined products (HS) 17 - Water-jet cutting machines (HS) 19 - Image projectors etc. (HS) 21 - Hazardous chemicals and pesticides (HS) 22 - Edible fish offal (HS) 23 - Black liquor (SIEC) 24 - Bagasse (SIEC) 25 - Wood pellets (SIEC) 26 - Ethylene, propylene, butylene, butadiene and other petroleum gases or gaseous hydrocarbons, except natural gas (SIEC) 30 - Align definitions of oil products with SIEC 31 - Crude oil / hydrogen (SIEC) 41 - Distinction between urban/suburban and interurban rail service (Voorburg) 43 - Buying and selling of own real estate (Voorburg)

9. Next steps  Final review of explanatory notes check of exclusions etc., duplications  Review of outstanding issues from CPC 2 Boundary questions, correspondence questions, inconsistencies in explanatory notes  Review of correspondence tables CPC 2.1 – HS 2012 CPC 2.1 – CPC 2 CPC 2.1 – ISIC 4

10. Next steps  Review of annexes to CPC publication  Review of introduction  All the above to be coordinated by TSG-CPC  After finalizing the work on the updated CPC structure by the Technical Subgroup and subsequent approval by the Expert Group, a final round of comments will be solicited from national statistical offices and other interested users Time frame?