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Statistical classi?cation of economic activites

in the European Community

NACE Rev. 2

KS-RA-07-015-EN-CNACE Rev. 2

Statistical classi?cation of economic activites in the European Community

Methodologies and

Working papers

ISSN 1977-0375

Statistical classi?cation of economic activites

in the European Community

NACE Rev. 2

Methodologies and

Working papers

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Preface

Reliable and comparable international statistics can be produced and made available to business, ?nancial institutions,

governments and all other operators in the international market only if based on common statistical standards.

NACE is the "statistical classi?cation of economic activities in the European Community" 1 and is the subject of legislation at the European Union level 2 , which imposes the use of the classi?cation uniformly within all the Member States.

It is a basic element of the international integrated system of economic classi?cations, which is based on classi?cations of

the UN Statistical Commission (UNSTAT), Eurostat as well as national classi?cations; all of them strongly related each to

the others, allowing the comparability of economic statistics produced worldwide by di?erent institutions.

e present NACE Rev. 2, which is the new revised version of the NACE Rev. 1 and of its minor update NACE Rev. 1.1, is

the outcome of a major revision work of the international integrated system of economic classi?cations which took place

between 2000 and 2007. NACE Rev. 2 reects the technological developments and structural changes of the economy,

enabling the modernisation of the Community statistics and contributing, through more comparable and relevant data,

to better economic governance at both Community and national level.

Development of NACE Rev. 2 has bene?ted from the work preparing the fourth revision of the United Nations' Inter-

national Standard Industrial Classi?cation of All Economic Activities (ISIC Rev. 4). Representatives from Eurostat and

Member States of the EU played an important role in this work. NACE Rev. 2 has been created based on ISIC Rev. 4 and

adapted to the European circumstances by a working group of experts on statistical classi?cations from the Member

States, candidate Countries as well as EFTA Countries, with the support and guidance of the classi?cation section at

Eurostat.

Beside the classi?cation, this publication contains also the introductory guidelines containing the main concepts, an his-

torical background and the methodological guidelines for understanding and applying NACE Rev. 2 as well as a detailed

description of the di?erent items of the classi?cation.

H. Carré

Director General

1

NACE is the acronym for "Nomenclature statistique des activités économiques dans la Communauté européenne".

2

Council Regulation (EEC) No 3037/90 of 9 October 1990 on the statistical classification of economic activities in the European Community (OJ No L 293, 24.10.1990, p. 1) as amended by Commission

Regulation (EEC) No 761/93 of 24 March 1993 (OJ No L 83, 3.4.1993, p. 1, and corrigendum, OJ No L 159, 11.7.1995, p. 31).

6

List of abbreviations

BECClassi?cation by Broad Economic Categories of the United Nations CNCombined Nomenclature - European Classi?cation of Goods

CPAEuropean Classi?cation of Products by Activity

CPCCentral Product Classi?cation of the United Nations

EECEuropean Economic Community

EP/CEuropean Parliament and Council

ESAEuropean System of National and Regional Accounts

EUEuropean Union

HSHarmonized Commodity Description and Coding System of the World Customs Organization ISICInternational Standard Industrial Classi?cation of all Economic Activities of the United Nations

KAUKind of Activity Unit

NACEEuropean Classi?cation of Economic Activities

PRODCOMEuropean System of production statistics for mining and manufacturing

RAMONEurostat's online server for metadata

SITCStandard International Trade Classi?cation of the United Nations

SNASystem of National Accounts

SPCStatistical Programme Committee

UNUnited Nations

7

Table of contents

page

Part I - NACE Introductory Guidelines

..............9

Chapter 1: NACE Introduction and background

.....11 1.1 NACE and the integrated system of classi?cations of economic activities and products ...............................13 e international system of economic classi?cations 1.2

NACE: scope and characteristics

...................14

Statistical classi?cations

..............................14 NACE as the EU classi?cation of economic activities

Scope and limitations of NACE

....................15

Structure and coding of NACE

.....................15 1.3.

NACE: historical background and legal context

..16

From NICE to NACE Rev. 2

.........................16 e NACE Regulations: main features ............17 1.4 ?e revision of NACE ...............................17

Chapter 2: NACE de?nitions and principles ........................................................................

..........19 2.1

Criteria adopted for developing NACE

............21

Criteria for classes

...................................21

Criteria for groups and divisions

...................21 2.2 Principal, secondary and ancillary economic activities 2.3

De?nitions of statistical units

......................22

Chapter 3: Classi?cation rules for activities and units .....................................................................25

3.1

Basic classi?cation rules

............................27

Value-added substitutes

.............................27 3.2

Multiple and integrated activities

.................28 e top-down method ...............................28

Changes of the principal activity of the unit

......30

Treatment of vertically integrated activities

......30

Treatment of horizontally integrated activities

...30 3.3

Rules for speci?c activities

..........................30 Activities undertaken on a fee or contract basis and outsourcing of activities Treatment of outputs of outsourced activities in the CPA

On-site installation

..................................32

Repair and maintenance

............................32 8 3.4

Section-specic rules and denitions ........................................................................

..............32

Section A: Agriculture, forestry and ?shing

......32 Section G: Wholesale and retail trade; repair of motor vehicles and motorcycles ....................................32

Sections K: Financial and insurance activities and M: Professional, scienti?c and technical activities

............34 Section O: Public administration and defence; compulsory social security Section T: Activities of households as employers; Undi?erentiated goods- and services-producing activities of households for own use ...............35

Chapter 4: Relations between NACE Rev. 2 and other classications ..................................................37

4.1

Relations with international classications

.......39 e international family of economic and social classi?cations e UN integrated system of classi?cations of activities and products

NACE link to ISIC

...................................41

NACE links to other international classi?cations

41
4.2

Relations with EU classications

..................41

Classi?cation of Products by Activity - CPA

......41

Combined Nomenclature - CN

.....................42

PRODCOM

Main Industrial Groupings - MIGs

................42 Balance of payments: classi?cation for foreign direct investment statistics 4.3

Relations with other multinational classications

NAICS

ANZSIC

Other classi?cations

.................................43 4.4

Aggregated structures for national accounts

......43

Chapter 5: Changes from NACE Rev. 1.1 to NACE Rev. 2 ..................................................................45

5.1

Changes in the structure

............................47 5.2

Correspondence tables: scope and use

.............50 Chapter 6: Glossary ........................................................................

Part II - Broad Structure of NACE Rev. 2

..........55

Part III - Detailed Structure of NACE Rev. 2

......59 Part IV - NACE Rev. 2 - Structure and Explanatory Notes ANNEX I - Regulation (EC) No 1893/2006 of the European Parliament and of the Council .............315

ANNEX II - Outsourcing

...............................357 NACE:

Introduction

and background chapter 1 part I NACE

Introductory

Guidelines

NACE:

Introduction

and background chapter 1 NACE:

Introduction

and background 13 1.1 NACE and the integrated system of classications of economic activities and products 1.

NACE is the acronym

3 used to designate the various statistical classi?cations of economic activities developed since

1970 in the European Union. NACE provides the framework for collecting and presenting a large range of statistical

data according to economic activity in the ?elds of economic statistics (e.g. production, employment, national ac-

counts) and in other statistical domains. 2.

Statistics produced on the basis of NACE are comparable at European and, in general, at world level. e use of NACE is mandatory within the European Statistical System.

The international system of economic classi?cations 3.

e comparability at world level of statistics produced on the basis of NACE is due to the fact that NACE is part of an integrated system of statistical classi?cations, developed mainly under the auspices of the United Nations Statistical Division. From the European point of view, this system can be represented as follows:

EconomicActivitiesProductsGoods

ISICWorld levelCPC

NACECPA

Nationalversionsof NACENationalversionsof CPA

PRODCOMCN

HSSITC

Nationalversions ofPRODCOMEU level

National

level Is the reference classification. Classifications are linked by the struct ure Is the reference classification. Classifications are linked by conversion table

Classifications are linked by conversion tables

3

NACE is derived from the French title "Nomenclature générale des Activités économiques dans les Communautés Européennes" (Statistical classification of economic activities in the European

Communities).

14

NACE: Introduction and background

Where:

ISIC 4 is the United Nations" International Standard Industrial Classication of all Economic Activities. CPC 5 is the United Nations" Central Product Classication. HSquotesdbs_dbs41.pdfusesText_41

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