CELEX: 51993PC0302
Language: en
Date: 1993-09-07
Title: Amended proposal for a COUNCIL REGULATION (EEC) on the statistical classification of products by activity (CPA) in the European Economic Community

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)
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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.
 ---pagebreak---                                                     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);
 ---pagebreak--- 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.
 ---pagebreak--- 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.
 ---pagebreak--- 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;
 ---pagebreak---                 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.
 ---pagebreak---        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.
 ---pagebreak---                                    Annex, Category 24.61.1
    Subcategories 24.61.11, 24.61.12, 24.61.13 and 24.61.14
        24.61.11  Propellent powders                     24.61.11   Propellent powders
                  and             prepared
                  explosives
        24.61.12  Safety              fuses;             24.61.12   Safety fuses; caps;
                  detonating             fuses;                     igniters
                  caps;            igniters;
                  e l e c t r i c
                  detonators;
        24.61.13  Fireworks                              24.61.Î3   Fireworks
        24.61.14  Signalling flares,                     24.61.14   Signalling flares,
                  rain rockets, fog                                 rain rockets, fog
                  signals and other                                 signals and other
                  pyrotechnic                                       pyrotechnic
                  articles, excluding                               articles, excluding
                  fireworks                                         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           Ingots,               other    27.10.2      Ingots,    other    primary
                  primary forms and                           forms and semi-finished
                  semi-finished                               products of      iron and
                  products of iron or                         steel
                  non-alloy s t e e l
        27.10.20   Ingots,              other        Deleted
                  primary forms and
                  semi-finished
                  products of iron or
                  non-allov s t e e l
27.10.3           Ingots.               other        Deleted
                  primary forms and
                  semi-finished
                  products                    of
                  s t a i n l e s s s t e e l or
                  other a l l o y s t e e l
        27.10.30   Ingots.              other         Deleted
                  primary forms and
                  semi-finished
                  products                    of
                  s t a i n l e s s s t e e l or
                  other a l l o y s t e e l
 ---pagebreak---                                                                       ISSN 0254-1475
                                                               COM(93) 302 final
                                                      DOCUMENTS
EN                                                                               17
                                 Catalogue number : CB-CO-93-338-EN-C
                                                             ISBN 92-77-57240-X
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