International Standard Industrial Classification of All ...

1 DRAFT ISIC Rev. 1 DRAFT ESA/ International Standard Industrial Classification of All Economic Activities ISIC Rev. (Updated: ) Version submitted to the United Nations Statistical Commission, 5-8 March 2002 DRAFT ISIC Rev. 2 DRAFT ISIC Rev. 3 SUMMARY OF CONTENTS Page Part One. Introduction to ISIC ..6 Part Two. Broad and detailed Part Three. Detailed structure and explanatory notes ..57 Part Four. Alternate aggregations and special Part Five. Correspondence DRAFT ISIC Rev. 4 Table of contents Part One. Introduction to ISIC .. 6 7 I. HISTORICAL BACKGROUND AND 7 A. Historical background .. 7 B. The 2002 update to Revision 3 .. 8 II. THE UNDERLYING PRINCIPLES OF THE Classification .

2 9 A. Purpose and nature of the Classification .. 9 1. General considerations .. 9 2. Differences from other types of classifications .. 10 B. Principal, secondary and ancillary activities .. 11 C. Principles used in constructing the Classification .. 14 1. Criteria in respect of divisions and groups .. 14 2. Criteria in respect of the classes .. 14 D. Statistical units .. 15 1. General Remarks .. 15 2. Statistical units in the System of National 17 3. Delineating statistical units .. 18 4. National differences and application of statistical units .. 21 E. Classification of statistical units .. 22 1. General 22 2. Treatment of mixed 22 Example - Identifying the principal activity of a reporting unit using the top-down method .. 23 3. E-commerce .. 25 4. Repair and maintenance .. 26 5. Activities on a fee or contract 26 6. Government activities .. 26 7. Classification of enterprises.

3 26 8. Classification of enterprises .. 27 F. structure and coding system of the Classification .. 27 III. APPLICATION OF THE 29 A. General remarks .. 29 B. Use of the ISIC in establishing related national 30 C. Aggregation and disaggregation of ISIC .. 31 D. Capturing and coding to ISIC information about the activity of units .. 32 E. Use of different levels of the Classification for the presentation of statistics .. 33 F. Compilation of homogeneity ratios .. 33 IV. RELATIONSHIP WITH OTHER CLASSIFICATIONS .. 34 A. General remarks .. 34 B. Relationship with product classifications: CPC, HS and SITC, 35 C. Relationship with other classifications of goods and services (BEC, BOP).. 35 D. Other derived and related activity classifications (NACE, ANZSIC, NAEMA, NAICS, ICFA).. 36 1. Derived classifications .. 36 2. Related classifications .. 37 E. Relationship of other International classifications with ISIC.

4 37 V. OTHER 39 A. Changes in ISIC , as compared to ISIC .. 39 B. Indexes to the Classification .. 40 C. Correspondence 40 D. Special purpose groupings of ISIC / Alternate 41 E. Support for ISIC users .. 41 DRAFT ISIC Rev. 5 Part Two. Broad and detailed I. Broad structure .. 44 II. Detailed structure .. 45 Part Three. Detailed structure and explanatory notes ..57 A Agriculture, hunting and 58 B 63 C Mining and 64 D 69 E Electricity, gas and water 128 F 129 G Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household 133 H Hotels and 144 I Transport, storage and 146 J Financial K Real estate, renting and business 155 L Public administration and defence; compulsory social 166 M 170 N Health and social 172 O Other community, social and personal service 174 P Activities of private households as employers and undifferentiated production activities of private 182 Q Extra-territorial organizations and 183 Part Four.

5 Alternate aggregations and special A. Information Sector .. 187 B. Information and Communication Technology (ICT) .. 189 C. Informal sector aggregates .. 191 E. Other alternate aggregations .. 192 Part Five. Correspondence A. Relationship between ISIC and COFOG .. 194 B. Correspondence between ISIC and ISIC (condensed) .. 202 C. Correspondence between ISIC and ISIC (condensed) .. 204 D. Correspondence between ISIC and ISIC .. 206 E. Correspondence between ISIC and ISIC .. 231 DRAFT ISIC Rev. 6 Part One. Introduction to ISIC DRAFT ISIC Rev. 7 INTRODUCTION I. HISTORICAL BACKGROUND AND REVISION A. Historical background 1. The original version of the International Standard Industrial Classification of All Economic Activities (ISIC) was adopted in 1948.

6 In that connection the Economic and Social Council approved the following resolution: "The Economic and Social Council, Taking note of the recommendation of the Statistical Commission regarding the need for International comparability of economic statistics and, Taking note of the International Standard Industrial Classification of All Economic Activities which the Statistical Commission has developed with the advice and assistance of Member Governments, Recommends that all Member Governments make use of the International Standard Industrial Classification of Economic Activities either by: (a) Adopting this system of Classification as a national Standard , or (b) Rearranging their statistical data in accordance with this system for purposes of International comparability".1 2. Wide use has been made of ISIC both nationally and internationally in classifying data according to kind of economic activity in the fields of economic statistics, population, production, employment, national income and others.

7 A number of countries have utilized the ISIC as the basis for developing their national Industrial Classification . Substantial comparability has been attained between the Industrial classifications of many other countries and the ISIC by ensuring, as far as practicable, that the categories at detailed levels of national classifications fitted into only one category of the ISIC. An increasing number of countries have adapted their national activity classifications or can provide statistical series according to the ISIC. The United Nations, the International Labour Organization (ILO), the Food and Agriculture Organization (FAO), the United Nations Educational, Scientific and Cultural Organization (UNESCO), the United Nations Industrial Development Organization (UNIDO) and other International bodies use the ISIC when publishing and analyzing statistical data.

8 3. Experience in the use of ISIC has revealed the need for periodic review of the structure and definition of its categories and underlying principles. Changes take place in the organization of economic activities and new types of economic activities become important. New analytical requirements develop for data classified according to kind of economic activity. The continuing DRAFT ISIC Rev. 8 experience in the use of the ISIC and the corresponding national classifications reveal aspects which should be amplified, clarified or improved in other ways. For these reasons the Statistical Commission therefore initiated reviews and revisions of the ISIC in 1956, 1965 and again in 1979. In each instance the Commission emphasized the need to maintain as much comparability between the revised and preceding versions of the ISIC as was possible while introducing the alterations, modifications and other improvements.

9 4. The first revision of the ISIC was issued in 1958, in the publication, Statistical Papers, Series M, No. 4, , after it had been considered by the tenth session of the Statistical Commission2. The second revision was issued in 1968 as Statistical Papers, Series M, No. 4, after being considered and approved by the fifteenth session of the Commission in 1968. The third revision of the ISIC was considered and approved by the Statistical Commission at its twenty-fifth session and issued in 1990 as Statistical Papers, Series M, , 5. Unlike previous revisions the third revision of the ISIC required harmonization with other activity classifications and with classifications of goods and services. This requirement added considerable complexity and constraints that had not applied in earlier revisions of the ISIC.

10 As the ISIC occupies a central position in the International comparison and analysis of a wide range of statistics, a great deal of attention had been devoted to ensuring that the ISIC is compatible with the economic structure , the statistical practice and needs of the different countries in the world. Although the general structure of the Classification had not been changed significantly, a greater level of detail had been introduced, especially in the part dealing with service activities, reflecting the growth of this sector of the economy in most countries of the world. The harmonization with other classifications improved the usefulness of ISIC for many analytical and descriptive purposes, for instance through the extended elaboration of services in the Central Product Classification (CPC). B. The 2002 update to Revision 3 6.