2002 Philippine Central Product Classification Republika ng Pilipinas PAMBANSANG LUPON SA UGNAYANG PANG-ESTADISTIKA (NATIONAL STATISTICAL COORDINATION BOARD) www.nscb.gov.ph TABLE OF CONTENTS Foreword .……… …………..… …………………… ………… …………………… ii NSCB Resolution No. 13, s. 2002 …………………… ………… …………………… iv Introduction ……… …………..… …………………… ………… …………………… v Technical Notes …. …………..… …………………… ………… …………………… vi Broad Structure of the Classification .…..….………… ………… ……………..…… xi Detailed Classification Section 0Agriculture, Forestry and Fishery Products ….. …………………… 1 Section 1Ores and Minerals; Electricity, Gas and Water … …………………… 37 Section 2 Food Products, Beverages and Tobacco; Textiles, Apparel and Leather Products ………………………… 48 Section 3 Other Transportable Goods, Except Metal Products, Machinery and Equipment ……. …………………… 151 Section 4Metal Products, Machinery and Equipment ….. …………………… 273 Section 5Construction Services …… ………… ………… …………………… 392 Section 6 Distributive Trade Services; Lodging; Food and Beverage Serving Services; Transport Services; and Utilities Distribution Services ….….. 410 Section 7 Financial and Related Services; Real Estate Services; and Rental and Leasing Services ………… …………………… 454 Section 8Business and Production Services …… ………… …………………… 474 Section 9Community, Social and Personal Services …… …………………… 545 Appendices Technical Committee on Statistical Standards and Classifications ….. ..……… 1 Technical Working Group on PCPC ……………… ………… …………………… 2 NSCB Staff ….. …………..… …………………… ………… …………………… 3 FOREWORD The Philippine Central Product Classification (PCPC) is a system of different but interrelated classifications of economic activities and goods and services. It provides a framework for national and international comparison and promotes harmonization of various types of statistics with goods and services. The primary purpose of the PCPC is to classify the goods and services that are the result of production in the Philippine economy. This production is accounted for in the national accounts of the country. The PCPC is useful in studying transactions in goods and services in detail. It serves as a national standard for assembling and tabulating all kinds of data requiring product detail including industrial production, national accounts, service industries, domestic and foreign commodity trade, international trade in services, balance of payments, consumption and price statistics. The PCPC will therefore, provide a link between product and industry or economic activity. The PCPC is one of the coordination mechanisms developed by the NSCB in consultation with the Technical Committee on Statistical Standards and Classifications (TCSSC) and its Technical Working Group on Philippine Central Product Classification (TWG-PCPC). We would like to take this opportunity to acknowledge the valuable contribution of the members of the Technical Committee on Standards and Classifications through its Technical Working Group on the PCPC for the review of this classification. Pursuant therefore to NSCB Resolution No. 13, series of 2002, all government offices, agencies and instrumentalities concerned are hereby enjoined to adopt and use this Philippine Central Product Classification effective June 5, 2002. ROMULO A. VIROLA Secretary General NSCB ii NSCB Resolution No. 13 Series of 2002 APPROVING AND ADOPTING THE 2002 PHILIPPINE CENTRAL PRODUCT CLASSIFICATION (PCPC) WHEREAS, there is a need to promote harmonization of various types of statistics dealing with goods and services; WHEREAS, a product classification is necessary (1) to provide a framework for national and international comparison of various kinds of statistics dealing with goods and services; and (2) to strengthen the role of the national accounts and balances as an instrument for coordination of economic statistics; WHEREAS, the National Statistical Coordination Board (NSCB) Technical Staff prepared the guidelines and developed the first Philippine Central Product Classification (PCPC) based on the United Nations’ Central Product Classification (UN-CPC) Version 1.1; WHEREAS, the NSCB Technical Committee on Statistical Standards and Classifications (TC-SSC), through its Technical Working Group reviewed and recommended for approval the 2002 Philippine Central Product Classification (PCPC) which is aligned with the UN-CPC Version 1.1; NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED that the Board approve the 2002 Philippine Central Product Classification (PCPC) for adoption by concerned government agencies and instrumentalities. Approved this 5th day of June 2002, in Pasig City iv INTRODUCTION The Philippine Central Product Classification (PCPC) is a system of different but interrelated classifications of economic activities and goods and services. For purposes of obtaining international comparability for data according to goods and services, the National Statistical Coordination Board (NSCB) prepared the PCPC which was patterned after the United Nations' Central Product Classification (CPC) Version 1.1. The PCPC, as a standard central product classification, was designed to serve as an instrument for assembling and tabulating all kinds of statistics requiring product detail. Such statistics may cover production, intermediate and final consumption, capital formation and foreign trade and may refer to commodity flows, stocks or balances and may be compiled in the context of input-output tables, balance-of-payments and other analytical presentations. As a general-purpose product classification, it serves as a guideline for future product-type classifications for specific areas of the economy. Such specific classifications should be compatible with the general framework of PCPC so as to ensure comparability of data. The PCPC includes categories for all products that can be the object of a domestic or international transaction or that can be entered into stocks. Furthermore, not only products that are an output of economic activity are represented, including transportable goods and non- transportable goods and services, but also non-produced assets, including land and assets that arise from legal contracts, such as patents, licenses, trademarks and copyrights (intangible assets). Although the non-produced assets are not regarded as products in the System of National Accounts (SNA), it was considered useful to include them in the PCPC because there is substantial national and international trade in them, and many users are interested in such data. The PCPC was prepared by the Standards and Classifications Systems Division under the Policies, Programs, and Standards Office (PPS) of the NSCB in consultation with the members of the Technical Committee on Statistical Standards and Classification (TC-SSC) through its Technical Working Group on Philippine Central Product Classification (TWG-PCPC). The TWG-PCPC is composed of representatives from the following agencies: » National Statistics Office (NSO) » Bureau of Agricultural Statistics (BAS) » Tariff Commission (TC) » National Economic and Development Authority (NEDA) » Bureau of Labor and Employment Statistics (BLES) » Bangko Sentral ng Pilipinas (BSP) » Securities and Exchange Commission (SEC) » Board of Investments (BOI) » Department of Trade and Industry (DTI) The TWG was subdivided into four (4) sub-working groups which facilitated the completion of the PCPC. Each sub-working group was assigned to work on two or three closely related sections of the PCPC. v TECHNICAL NOTES Historical Background The need for the development of the Central Product Classification originated from initiatives in the early 1970s to harmonize international classifications. In the development of those initiatives, a standard classification of all products was perceived as a key element. The twenty-first session of the Conference of European Statisticians, in 1973, and meetings of members of both bodies with the secretariats of international organizations, there was general agreement on the need to improve harmonization among the various classifications prepared under the auspices of the United Nations and other international bodies, in economic and other fields. With regards to the preconditions for creating a comprehensive classification of all goods and services, an important development took place in the 1970s. The Customs Cooperation Council (CCC) undertook the revision of its nomenclature (CCCN) and its extension from a four-digit system to a six-digit system. As a result, a new nomenclature, called the Harmonized Commodity Description and Coding System (HS) was adopted in 1993 and entered into force on 1 January 1988. The Statistical Office of the United Nations Secretariat participated in the development of HS, mainly in order to ensure that the disaggregations applied in HS were, to the extent possible, consistent with the Standard International Trade Classification (SITC) of the United Nations and the industrial origin of the goods. Based on the recommendations of an Expert Group convened by the United Nations Secretariat, the Statistical Commission at its nineteenth session, in 1976, approved a programme to harmonize the existing activity classifications of the United Nations, the European Communities and the Council for Mutual Economic Assistance and to simultaneously develop a system of different, but interrelated, classifications of economic activities and goods and services. Development of a new classification covering both goods and services – the Central Product Classification (CPC) – was intended to provide a basic