detailed explanation for each SIC code - Biffa

More documents

Recommendations

Info

Rules for classifying statistical units UK Standard Industrial Classification of Economic Activities 2007 – SIC(2007) 46. When applying NACE Rev. 2, vertical integration should be treated like any other form of multiple activities, that is, the principal activity of the unit is the activity accounting for the largest share of value added, as determined according to the top-down method. This treatment has changed from previous versions of NACE. For vertical integration of specific situations in Agriculture, see paragraph 102. 47. If value added or substitutes cannot be determined for the individual steps in a vertically integrated process directly from accounts compiled by the unit itself, comparisons with similar units could be used. Alternatively, valuation of intermediate or final products could be based on market prices. Treatment of horizontally integrated activities 48. Horizontal integration of activities occurs when activities are carried out simultaneously using the same factors of production. The principle of value added, has to be applied, following the top-down method, and the same precautions for using substitutes as listed above apply here. Activity specific rules, definitions and rules for classification of units outsourcing their production Terminology Outsourcing 49. Contractual agreement according to which the principal requires the contractor to carry out specific tasks, such as parts of a production process or even the full production process, employment services or support functions. 50. The term outsourcing is also valid if the contractor is a subsidiary unit and whether or not the tasks are carried out on market conditions. 51. The principal and the contractor may be located within the same economic territory or in different economic territories. The actual location does not affect the classification of either one of these unit. Principal Contractor Manufacturing activities 52. A unit that enters into a contractual relationship with another unit (contractor) for that other unit to carry out specific tasks, such as parts of a production process or even the full production process, employment services or support functions. 53. A unit that carries out specific tasks, such as parts of a production process or even the full production process, employment services or support functions on a contractual relationship with a principal. The term subcontractor is also used. In NACE the activities performed by the contractor are denominated ‘on a fee or contract basis’. 54. The physical and/or chemical transformation of materials, substances or components into new products. The material, substances or components are raw materials which are products of agriculture, forestry, fishing or mining as well as products and semi-finished products of other manufacturing activities. Subcontractor 55. See contractor as defined in paragraph 53. Classification rules 56. These rules set out how to classify the outsourcing activities of principals and contractors, as defined in paragraphs 52 and 53. It is important to note that the rules apply only to the classification of the outsourcing activities and that where principals or contractors are also involved in other activities, their overall activity classification must be determined by applying the value added guidance set out in paragraphs 30 to 48 to all of their activities. 16
UK Standard Industrial Classification of Economic Activities 2007 – SIC(2007) Rules for classifying statistical units Outsourcing of parts of a manufacturing production process 57. A principal delegates a part of a manufacturing production process to a contractor. Codification rules 58. The principal has to be classified as if he were carrying out the complete production process. 59. The contractor is classified with units producing the same goods or services for their own account. Outsourcing of the complete manufacturing production process (i) 60. A principal who owns the main material inputs subcontracts the complete manufacturing production process of products to another unit. Codification rules 61. The principal who owns the main material inputs (for example, textiles and buttons for the production of apparel, wood and metal accessories for the manufacture of furniture) and thereby owns the final outputs, but who has done the production by contractors, is classified in NACE section C (Manufacturing), specifically to the class that corresponds the full production process. 62. The contractor is classified with units producing the same goods for their own account. Outsourcing of the complete manufacturing production process (ii) 63. A principal who doesn’t own the material inputs subcontracts the complete manufacturing of products to another unit. Codification rules 64. The principal that has the production done by others and who does not own the material inputs, should be classified in section G ‘Wholesale and trade’ (depending on the activity and the specific good sold). The contractor is classified with units producing the same goods for their own account. Outsourcing of construction activities 65. A principal subcontracts the construction work to other units, but remains overall responsible for the construction process. Codification rules 66. Both the principal and the contractors are classified in NACE section F (Construction), specifically to the class that corresponds to the construction activities carried out. Outsourcing of support functions 67. A principal carries out the whole or a part of the production process (of a good or a service) but delegates certain support functions, such as accounting or computer services, to a contractor. These support functions are not part of the core production process, they do not directly lead to the final good or service, but support the general functioning of the principal as a production unit. Codification rules 68. The principal is classified to the same NACE code that represents the core production process. The contractor is classified to the specific activity he is carrying out, for example, NACE 69.20 (Accounting, bookkeeping and auditing activities; tax consultancy), NACE 62.02 (Computer consultancy activities) etc. 17
Page 1 and 2: UK Standard Industrial Classificati
Page 3 and 4: Contents Page Preface iv Introducti
Page 5 and 6: Introduction A Standard Industrial
Page 11 and 12: Rules for classifying statistical u
Page 19: UK Standard Industrial Classificati
Page 31 and 32: UK SIC(2007) - Summary of Structure
Page 57: UK Standard Industrial Classificati
Page 60 and 61: Explanatory Notes UK Standard Indus
Page 70 and 71:
Explanatory Notes UK Standard Indus
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
Page 138 and 139:
Page 140 and 141:
Page 142 and 143:
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Page 186 and 187:
Page 188 and 189:
Page 190 and 191:
Page 192 and 193:
Page 194 and 195:
Page 196 and 197:
Page 198 and 199:
Page 200 and 201:
Page 202 and 203:
Page 204 and 205:
Page 206 and 207:
Page 208 and 209:
Page 210 and 211:
Page 212 and 213:
Page 214 and 215:
Page 216 and 217:
Page 218 and 219:
Page 220 and 221:
Page 222 and 223:
Page 224 and 225:
Page 226 and 227:
Page 228 and 229:
Page 230 and 231:
Page 232 and 233:
Page 234 and 235:
Page 236 and 237:
Page 238 and 239:
Page 240 and 241:
Page 242 and 243:
Page 244 and 245:
show all

detailed explanation for each SIC code - Biffa

Create successful ePaper yourself

Delete template?

Save as template?