Amended proposal for a COUNCIL REGULATION (EEC) on the statistical classification of products by activity (CPA) in the European Economic Community
Date: 1993-09-07
Institutions: European Commission
Subjects: EU statistics, classification, data collection, goods and services, standardisation, statistical nomenclature

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) 

wMï 

•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. 

could  be  accepted  by  the 
Two  minor,  technical  amendments  to  the  Regulation  annex 
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. 

3. 

1. 

The  term  "product*1  shall  mean  transportable  goods,  non-transportable  goods and 
services. 

This  Regulation  shall  apply  only  to  the  use  of  this  classification  for statistical 
purposes. 

Article 2 

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 
of subdivisions which are wholly contained within CPA subcategories; 

the  CPA  shall  consist 

than 

classifications  which 

the 
separate codification. 

are  derived 

in 

this  way  may  have 

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 
their  national  product 
text  defining  or  amending 
publication 
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. 

the  proposed 

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) 

b) 

the interpretation of the CPA; 

the incorporation of minor amendments to the CPA: 

designed 
developments, especially in the field of services; 

account 

take 

of 

to 

technological 

or 

economic 

designed to align and clarify  texts; 

resulting  from  amendments  made to other  international  product  classifications, 
in particular the CPC; 

c) 

d) 

e) 

f) 

g) 

h) 

i) 

j) 

preparation and coordination of work on revising the CPA; 

drafting  and updating of explanatory notes on the CPA; 

examination  of  problems  arising  from 
Member States' product classifications; 

implementation  of 

the  CPA 

in 

the 

attempting  to  preparare,  as  appropriate,  a  common  position  concerning  the work  of 
international  organizations  on  product  classifications,  especially the  CPC  and  its 
explanatory notes; 

harmonization with NACE Rev. 1 ; 

coordination  of  work with other  committees  dealing  with  classifications,  in particular 
the Harmonized System (HS) and the Combined Nomenclature (CN); 

extension of the transitional period at the request of a Member State; 

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. 

Product classifications  used after  1 January  1994 shall be drawn up in accordance with Article 
3. 

Article 7 

Article 8 

1. 

2. 

2a. 

There  will  be  a  transitional  period  starting  on  1  January  1994  and  ending on  31 
December 1995. 

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. 

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. 

Subcategories  24.61.11,  24.61.12,  24.61.13  and  24.61.14 

Annex,  Category  24.61.1 

24.61.11  Propellent  powders 
p r e p a r ed 

a nd 
explosives 

24.61.11  Propellent powders 

24.61.12  S a f e ty 

f u s e s; 
fuses; 
i g n i t e r s; 
ic 

r

detonating 
caps; 
e l e c t
d e t o n a t o r s; 

24.61.12  Safety  fuses; caps; 
igniters 

24.61.13  Fireworks 

24.61.Î3  Fireworks 

24.61.14  Signalling  flares, 
rain  rockets,  fog 
signals  and  other 
p y r o t e c h n ic 
articles, excluding 
fireworks 

24.61.14  Signalling  flares, 
rain  rockets,  fog 
signals  and  other 
p y r o t e c h n ic 
articles,  excluding 
fireworks 

24.61.15  Prepared explosives 

24.61.16  Gunpowders 

24.61.17  Detonators 

Annex,  Categories  27.10.2  and  27.10.3 

27.10.2 

27.10.2 

o t h er 

forms  and 

I n g o t s, 
primary 
s e m i - f i n i s h ed 
products  of  iron  or 
non-alloy  s t e el 

Ingots, 
forms  and 
products 
s t e el 

other 

primary 
semi-finished 
and 

iron 

of 

27.10.20 

27.10.3 

o t h er 
forms  and 

I n g o t s, 
primary 
s e m i - f i n i s h ed 
products  of  iron  or 
non-allov  s t e el 

other 
forms  and 

Ingots. 
primary 
s e m i - f i n i s h ed 
p r o d u c ts 
of 
s t a i n l e ss  s t e el  or 
other  a l l oy  s t e el 

27.10.30  Ingots. 

other 
forms  and 

primary 
s e m i - f i n i s h ed 
of 
p r o d u c ts 
s t a i n l e ss  s t e el  or 
other  a l l oy  s t e el 

Deleted 

Deleted 

Deleted 

ISSN 0254-1475 

COM(93) 302 final 

DOCUMENTS 

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Catalogue number : CB-CO-93-338-EN-C 

ISBN 92-77-57240-X 

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