wMï COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(93) 302 final - SYN427 
Brussels, 7 September 1993 
Amended proposal for a 
COUNCIL REGULATION (EEC) 
on the statistical classification of products by activity (CPA) 
in the European Economic Community 
(presented by the Commission pursuant to Article 149(3) 
of the EEC-Treaty) 
•M1! 
-(-
Explanatory memorandum 
Subject: Position of the Parliament on the Regulation on the statistical classification of products 
by activity (CPA) in the European Economic Community 
1. Background 
On 23 July 1992, the Commission presented to the Council a proposal for a Council Regulation 
on the statistical classification of products by activity. 
The European Parliament delivered its opinion on 21 April 1993. 
The Economic and Social Committee delivered its opinion on 24 November 1992. 
2. Aim of the Commission proposal 
This proposal for a Regulation basically aims to establish a common statistical language which 
will allow effective comparisons to be made between data collected in the Member States. By 
standardising the statistical language, it will be possible to speed up the supply of reliable and 
comparable statistical information both to public authorities and to economic operators. This 
approach is also in line with the completion of the single market, since it sets up an instrument 
which, through the effective comparability of the data will allow the necessary monitoring to be 
carried out, with particular regard to the prevention of distortions of competition within the 
Community. 
3. Comments on the amendments proposed by Parliament 
Eight amendments to the text of the Regulation were tabled at its first reading in the European 
Parliament. The amendments made to the Commission's initial proposal basically concern the 
following points : 
- A one year's delay for the application of the Regulation. 
- The presentation to the European Parliament and to Council of a report on the experience 
acquired after the end of the transitional period. 
- A management committee instead of a consultative committee. 
Two minor, technical amendments to the Regulation annex could be accepted by the 
Commission who regrets nevertheless that these are questions which should be dealt with by the 
committee. 
During the procedure it emerged that all twelve Member States and the Economic and Social 
Committee were unanimous in asking for a management committee rather than a consultative 
committee. The Commission insists however on an advisory committee. 
4. Conclusion 
Given that the amendments made to the Commission's proposal are fully acceptable, and, with 
the exception of the abovementioned problem regarding the Committee, no fundamental changes 
were made to the content, the Commission can give its full support to the parliament proposals, 
except concerning the comitology. 
lJUs 
Amended proposal for a 
COUNCIL REGULATION (EEC) 
on the statistical classification of products by activity (CPA) 
in the European Economic Community 
THE COUNCIL OF THE EUROPEAN COMMUNITIES 
Having regard to the Treaty establishing the European Economic Community, and in 
particular Article 100 A thereof, 
Having regard to the proposal from the Commission, 
In cooperation with the European Parliament, 
Having regard to the opinion of the Economic and Social Committee, 
1. Whereas, in order to function, the internal market requires statistical standards 
applicable to the collection, transmission and publication of national and Community 
statistics so that undertakings, financial institutions, governments and all other 
operators in the single market can be provided with reliable and comparable statistical 
data; 
2. Whereas such information is necessary to enable undertakings to assess their 
competitiveness, and useful to the Community institutions in preventing distortions of 
competition; 
3. Whereas only if the Member States use product classifications by activity linked to the 
Community classification will it be possible to provide integrated information with the 
reliability, speed, flexibility and degree of detail required for the management of the 
internal market; 
4. Whereas provision should be made for the Member States to be able, in order to meet 
national requirements, to retain or to insert in their national classifications additional 
subdivisions based on the classification of products by activity within the European 
Economic Community; 
5. Whereas the international compatibility of economic statistics requires that the 
Member States and the Community institutions use product classifications by activity 
which are directly linked to the United Nations Central Product Classification (CPC); 
6. Whereas the classification of products by activity in the European Economic 
Community should be linked to the classification of economic activities in the 
European Economic Community (NACE Rev.l); 
7. Whereas the structuring of a product classification in accordance with the production 
activity involved avoids proliferation of unrelated coding schemes and facilitates the 
identification by producers of relevant markets ; 
8. Whereas there is a need to create a reference framework within which statistical data 
on production, consumption, external trade and transport can be compared; 
9. Whereas the use of the classification of products by activity within the European 
Economic Community requires that the Commission be assisted by a management 
committee: the Statistical Programme Committee set up by Decision 89/382/EEC, 
Euratom *on any issue relating to the application of this Regulation, in particular 
as regards interpretation of that classification, minor amendments thereto and the 
drafting and updating of explanatory notes; 
9a. Whereas within the framework of this regulation it is desirable to have uniform codes 
for all the Member States using the same product description and a corresponding 
alphanumeric code: 
10. Whereas it is vital that the contents of the various categories of the classification of 
products by activity within the European Economic Community be interpreted 
uniformly in all the Member States; 
11. Whereas the introduction of a new classification of products by activity requires a 
transitional period; 
HAS ADOPTED THIS REGULATION 
Article 1 
1. The purpose of this Regulation is to establish a classification of products by activity 
within the European Economic Community in order to ensure comparability between 
national and Community classifications and hence national and Community statistics. 
l) OJ L 181 of 28 June 1989, p.47. 
2. The term "product*1 shall mean transportable goods, non-transportable goods and 
services. 
3. This Regulation shall apply only to the use of this classification for statistical 
purposes. 
Article 2 
1. A common basis for the classification of products by activity within the European 
Economic Community, hereinafter referred to as the CPA, is hereby established, 
comprising: 
a first level consisting of headings identified by an alphabetical code (sections); 
an intermediate level consisting of headings identified by a two-character 
alphabetical code (subsections); 
a second level consisting of headings identified by a two-digit numerical code 
(divisions); 
a third level consisting of headings identified by a three-digit numerical code 
(groups); 
a fourth level consisting of headings identified by a four-digit numerical code 
(classes); 
a fifth level consisting of headings identified by a five-digit numerical code 
(categories); 
a sixth level consisting of headings identified by a six-digit numerical code 
(subcategories). 
2. The CPA is annexed to this Regulation. 
Article 3 
1. The CPA shall be used by the Commission and the Member States as a central product 
classification. The CPA may be used for aggregated or detailed Community, 
national, specific or functional adaptations based on the subcategories of the CPA. 
2. These classifications will be related to the CPA in accordance with the following 
rules: 
classifications which are more aggregated than the CPA shall consist of precise 
aggregations of CPA subcategories; 
classifications which are more detailed than the CPA shall consist 
of subdivisions which are wholly contained within CPA subcategories; 
the classifications which are derived in this way may have 
separate codification. 
3. The Member States wishing to use a national classification derived from the CPA shall 
adopt as quickly as possible, and by 31 December 1993 at the latest, the measures 
required for the establishment of a national product classification in compliance with 
this Article. 
4. Without prejudice to the responsibilities of the Commission pursuant to article 169 of 
the treaty. Member States shall submit to the Commission for advice and before 
publication the proposed text defining or amending their national product 
classification. Such text shall be examined by the Commission in the light of the 
provisions of paragraph 2 of this article. A national classification shall be forwarded 
for information to the other Member States. 
Article 4 
The Commission shall be assisted by the Statistical Programme Commitee (SPC), hereinafter 
referred to as "the Committee", composed of representatives of the Member States and 
chaired by a representative of the Commission. 
Article 5 
The Committee may examine any questions concerning the CPA raised by the Chairman, 
whether on his own initiative or at the request of a representative of a Member State, which 
have a bearing on the application of this Regulation, especially as regards: 
a) the interpretation of the CPA; 
b) the incorporation of minor amendments to the CPA: 
designed to take account of technological or economic 
developments, especially in the field of services; 
designed to align and clarify texts; 
resulting from amendments made to other international product classifications, 
in particular the CPC; 
c) preparation and coordination of work on revising the CPA; 
d) drafting and updating of explanatory notes on the CPA; 
e) examination of problems arising from implementation of the CPA in the 
Member States' product classifications; 
f) attempting to preparare, as appropriate, a common position concerning the work of 
international organizations on product classifications, especially the CPC and its 
explanatory notes; 
g) harmonization with NACE Rev. 1 ; 
h) coordination of work with other committees dealing with classifications, in particular 
the Harmonized System (HS) and the Combined Nomenclature (CN); 
i) extension of the transitional period at the request of a Member State; 
j) coordination of work with other bodies dealing with more aggregated or more detailed 
Community, national, specific or functional classifications. 
Measures to be taken under a) to j) shall be adopted in accordance with the procedure defined 
in Article 6. 
Article 6 
The representative of the Commission shall submit to the Committee a draft of the 
measures to be adopted. The Committee shall deliver its opinion on the draft within a 
time limit which the Chairman may lay down according to the urgency of the matter. 
The opinion shall be delivered by the majority laid down in Article 148 (2) of the 
Treaty in the case of decisions which the Council is required to adopt on a proposal 
from the Commission. The votes of the representatives of the member States within 
the Committee will be weighted in the manner set out in that Article. The Chairman 
shall not vote. 
2. The Commission shall adopt the measures, which shall apply immediately. However, 
if those measures are not in accordance with the opinion of the Committee, they shall 
be communicated by the Commission to the Council forthwith. In that event, the 
Commission shall defer application of the measures which it has decided upon for 
three months from the date of such communication. 
The Council, acting by qualified majority, may take a different decision within the 
period referred to in paragraph 2. 
Article 7 
Product classifications used after 1 January 1994 shall be drawn up in accordance with Article 
3. 
Article 8 
1. There will be a transitional period starting on 1 January 1994 and ending on 31 
December 1995. 
2. The transitional period may be extended and a Member State may be authorized on 
the basis of duly substantiated technical or operational reasons, to use a classification 
not provided for under Article 3 according to the procedure of Article 5. 
2a. Six months after the end of the transitional period the Commission shall submit a 
report to the Council and the European Parliament on its experiences with the 
statistical classification of products by activity: the report shall also cover the revision 
of the UN Central Product Classification (CPC) carried out by the United Nations 
Statistical Office (UNSO^ 
Article 9 
This Regulation shall enter into force on the twentieth day following its publication in the 
Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in all Member States. 
Done at 
For the Council 
The President. 
Annex, Category 24.61.1 
Subcategories 24.61.11, 24.61.12, 24.61.13 and 24.61.14 
24.61.11 Propellent powders 
and prepared 
explosives 
24.61.12 Safety fuses; 
detonating fuses; 
caps; igniters; 
electric 
detonators; 24.61.11 Propellent powders 
24.61.12 Safety fuses; caps; 
igniters 
24.61.13 Fireworks 
24.61.14 Signalling flares, 
rain rockets, fog 
signals and other 
pyrotechnic 
articles, excluding 
fireworks 24.61.Î3 Fireworks 
24.61.14 Signalling flares, 
rain rockets, fog 
signals and other 
pyrotechnic 
articles, excluding 
fireworks 
24.61.15 Prepared explosives 
24.61.16 Gunpowders 
24.61.17 Detonators 
27.10.2 Annex, Categories 27.10.2 and 27.10.3 
Ingots, other 27.10.2 
primary forms and 
semi-finished 
products of iron or 
non-alloy steel Ingots, other primary 
forms and semi-finished 
products of iron and 
steel 
27.10.20 Ingots, other 
primary forms and 
semi-finished 
products of iron or 
non-allov steel 
27.10.3 Ingots. other 
primary forms and 
semi-finished 
products of 
stainless steel or 
other alloy steel 
27.10.30 Ingots. other 
primary forms and 
semi-finished 
products of 
stainless steel or 
other alloy steel Deleted 
Deleted 
Deleted 
ISSN 0254-1475 
COM(93) 302 final 
DOCUMENTS 
EN 17 
Catalogue number : CB-CO-93-338-EN-C 
ISBN 92-77-57240-X 
Office for Official Publications of the European Communities 
L-2985 Luxembourg