Producer Price Index Manual: Theory and Practice ... - METAC

Producer Price Index Manual
improved, and certain detailed categories of industries
have been reclassified.
3.69 Unlike the predominantly output-based criterion
underlying ISIC and NACE, the NAICS system
is based on a process-oriented principle. It attempts
to group all establishments with like production
processesr, whether or not the majority of output
is in the same detailed product category.
3.70 NAICS can be mapped into the ISIC, Revision
3, for 60 high-level (generally ISIC division)
groupings. A rough idea of the relationship between
ISIC and NAICS at the ISIC section level is shown
in the Table 3.2, which was derived from published
sources. 3 It is evident from the variety of NAICS
codes included in the ISIC/NACE sections in this
table that NAICS has a rather different structure at
the top level compared with ISIC, Revision 3 and
NACE. Thus, while NACE is an elaboration and
slight reorganization (within mining and manufacturing)
of ISIC, NAICS is a substantive, if mappable
reorganization of ISIC. The two regional systems
thus represent contrasting approaches to providing
international comparability of national data.
3.71 NAICS does not adhere as closely as
NACE to the international ISIC standard and is not
as uniform across the member states of NAFTA as
NACE is across the EU. On the other hand, it is a
very modern system in the prominence and detail
given to information and other service activities.
Australian and New Zealand Standard Industrial
Classification (ANZSIC)
3.72 The ANZSIC was developed between the
Australian Bureau of Statistics (ABS) and New
Zealand Department of Statistics for use in the collection
and publication of statistics in both countries.
It is related to the ISIC in concept and contains
a hierarchical structure of divisions (17), subdivisions
(53), groups (158), and classes (465). The
ABS has developed a concordance between AN-
ZSIC and ISIC, revision 3.
3 A detailed concordance between NAICS and ISIC, Revision
3, is still in preparation by the NAICS working party
E.2.2 Product classification
Central Product Classification (CPC)
3.73 The CPC extends the Harmonized Commodity
Description and Coding System (HS) used
in the classification of traded goods to cover services
and nontraded goods. It is designed to correlate
to some extent with the ISIC, which, in turn, is
based on the type of product a producer unit or establishment
principally produces. It is, therefore, integrated
with both of these international standards.
3.74 Specifically, the CPC coding system consists
of five digits indicating 9 sections, 70 divisions,
305 groups, 1,167 classes, and 2,092 subclasses.
Each of the 2,092 subclasses is an aggregate
of one or more headings or subheadings of the
HS. Integration with ISIC, Revision 3, has been
brought about to some extent by grouping CPC subclasses
according to the ISIC activities for which
they are the principal products. In general, each
five-digit subclass of the CPC consists of goods and
services that are predominantly produced in one
specific four-digit class or classes of ISIC, Revision
3.
3.75 However, since CPC is a product classification,
it cannot be used to uniquely identify the industry
of a product’s origin: a given detailed CPC
code may identify products originating from establishments
classified in different ISIC activity categories.
However, identification of product type by
originating activity would be possible in principle
merely by recording both the ISIC and CPC codes
for each product record collected in the business
surveys providing source data.
EUROSTAT Classification of Products by Activity
(CPA and PRODCOM)
3.76 The CPA is designed to correlate with, and
thus derives from, NACE, the EU specialization of
ISIC. The motivation for developing CPA is that
the CPC is not sufficiently detailed to be the single
central product classification system for a comprehensive
system of economic statistics, and that
European users of the product classification preferred
that it be derived from the industrial activity
system. For coding of industrial statistics, CPA has
been specialized in the PRODCOM product coding
system, either by adding detail to CPA or aggregating
some of its components, following the rule that
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