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The 5th revision of the Classification of Broad Economic Categories (BEC)

Ronald JansenChief of the Trade Statistics BranchUnited Nations Statistics Division / DESAE-mail: Jansen1@un.org orBigData@un.org

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Reference documents

Note to the EG

Report of the Global Consultation

Draft Manual of BEC, 5th revision, version June 2014

Expert Group on Classifications - 2015

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Content of Draft Manual

I. Historical Background

II. Reasons for revising the BEC

III. The structure of the BEC, 5th revision

IV. The compilation of the BEC

V. The analytical use of the BEC

VI. The relationship to other classifications

VII. The relationship to earlier versions

Expert Group on Classifications - 2015

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History of the BEC

I. Original BEC in 1971 (SITC, Rev.1)

II. First revision 1976 (SITC, Rev.2)

III. Second revision 1984 (SITC, Rev.3)

IV. Third revision 1986 (corrigendum)

V. Fourth revision 2002 (SITC, Rev.4)

Expert Group on Classifications - 2015

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History of the BEC1. At its thirteenth session, in 1965, the Statistical

Commission: (a)recognizing the growing need for

international trade statistics analyzed by broad economic categories,

(b)recommended to distinguish (i)food, (ii)industrial supplies, (iii)capital equipment, (iv)consumer durables and (v)consumer non-durables,

(c)recommended that each reporting country compiles those broad economic categories for the world and principal regions to supplement the data already compiled on the basis of the sections of the SITC.

Expert Group on Classifications - 2015

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Expert Group on Classifications - 2013

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Expert Group on Classifications - 2013

Friends of the Chair Group on Internationalization 8

(i) Re-defining BEC structure to better reflect current economic reality,

(ii) Extending its scope, including services as well as goods, while giving extra attention to the definition of intermediate goods,

(iii)Improving explanatory materials to help both compilers and users of data disseminated according to BEC, and

(iv)Providing updated correspondence tables to link BEC with other statistical classifications.

Mandate of TSG on BEC

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Reasons for revising

1. BEC is still relevant: referred to in more than 300 research papers since 2000

2. End-use categories should be better visible

3. Better guidance on dual-use classification

4. Updating of Economic categories

5. Services should be added (BEC – CPC)

6. Review of correspondence HS - BEC

Expert Group on Classifications - 2015

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Dimensions of the 5th revision

1. Broad Economic Categories

2. Goods and Services

3. End-use categories

4. Primary and Processed (intermediate consumption)

5. Generic and Specified (intermediate consumption)

6. Durable and non-durable (final consumption)

Expert Group on Classifications - 2015

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Expert Group on Classifications - 2015

BEC – Broad Economic Categories TotalServices

Goods

1. Food, beverages, agriculture, catering

1058 6 1052

2. Energy, Mining, basic metals, chemicals, plastics

927 17 910

3. Construction, housing, appliances, furniture, decoration and accommodation

1159 27 1132

4. Textile, apparel, footwear, fashion, jewelry

989 5 984

5. Transport equipment and services, and travel

495 59 436

6. ICT, business and finance services, news, media, electronic entertainment

369 89 280

7. Health, sports, cultural activities, education, science, research, testing

482 64 418

8. Other 0 0 0

  5481 267 5214

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Structure of 5th revision of BEC

Expert Group on Classifications - 2015

Code Main economic categories

Goods or Services

End-Use category

Primary versus processed

Generic versus Specif.

Non-Durable/ Durable

1.1.1.1.0.1 Food and beverages Goods Intermediate consumption Primary N/A Non-durable

1.1.1.1.0.2 Food and beverages Goods Intermediate consumption Primary N/A Durable

1.1.1.2.1.1 Food and beverages Goods Intermediate consumption Processed Generic Non-durable

1.1.1.2.2.1 Food and beverages Goods Intermediate consumption Processed Customized Non-durable

1.1.1.2.1.2 Food and beverages Goods Intermediate consumption Processed Generic Durable

1.1.1.2.2.2 Food and beverages Goods Intermediate consumption Processed Customized Durable

1.1.2.2.1.2 Food and beverages Goods Capital formation Processed Generic Durable

1.1.2.2.2.2 Food and beverages Goods Capital formation Processed Customized Durable

1.1.3.1.0.1 Food and beverages Goods Final consumption Primary N/A Non-durable

1.1.3.1.0.2 Food and beverages Goods Final consumption Primary N/A Durable

1.1.3.2.1.1 Food and beverages Goods Final consumption Processed Generic Non-durable

1.1.3.2.2.1 Food and beverages Goods Final consumption Processed Customized Non-durable

1.1.3.2.0.2 Food and beverages Goods Final consumption Processed Generic Durable

1.1.3.2.0.2 Food and beverages Goods Final consumption Processed Customized Durable

1.2.1.0.1.0 Food and beverages Services Intermediate consumption N/A Generic N/A

1.2.1.0.2.0 Food and beverages Services Intermediate consumption N/A Customized N/A

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Structure of 5th revision of BEC

Expert Group on Classifications - 2015

Code Goods or Services

End-Use category

Primary versus processed

Generic versus Specif.

Non-Durable/ Durable

1.1.1.1.0.1Goods Intermediate consumption Primary N/A Non-durable

1.1.1.1.0.2Goods Intermediate consumption Primary N/A Durable

1.1.1.2.1.1Goods Intermediate consumption Processed Generic Non-durable

1.1.1.2.2.1Goods Intermediate consumption Processed Customized Non-durable

1.1.1.2.1.2Goods Intermediate consumption Processed Generic Durable

1.1.1.2.2.2Goods Intermediate consumption Processed Customized Durable

1.1.2.2.1.2Goods Capital formation Processed Generic Durable

1.1.2.2.2.2Goods Capital formation Processed Customized Durable

1.1.3.1.0.1Goods Final consumption Primary N/A Non-durable

1.1.3.1.0.2Goods Final consumption Primary N/A Durable

1.1.3.2.1.1Goods Final consumption Processed Generic Non-durable

1.1.3.2.2.1Goods Final consumption Processed Customized Non-durable

1.1.3.2.0.2Goods Final consumption Processed Generic Durable

1.1.3.2.0.2Goods Final consumption Processed Customized Durable

1.2.1.0.1.0Services Intermediate consumption N/A Generic N/A

1.2.1.0.2.0Services Intermediate consumption N/A Customized N/A

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Global Consultation of draft BEC

1. July - September 2014

2. 198 sent – 49 responses received

3. Overall positive

4. More clarification needed

5. Some specific comments for amendments

Expert Group on Classifications - 2015

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Results of Global Consultation Use different approach for choosing the top-

level economic categories. Give exact definition of the categories in terms of HS and CPC.

What is the additional value of BEC over a breakdown of HS codes by ISIC classes and end-use (as input to the SUT)?

Clarify that the end-use dimension is fully independent from the economic categories in the revised BEC. 

Explain how services data could be allocated, if services are collected with EBOPS and not with CPC classes.

Should the end-use category ‘gross fixed capital formation’ actually be ‘gross capital formation’?

The 4th and 5th dimensions should be properly defined

Expert Group on Classifications - 2015

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Next Steps

Expert Group on Classifications - 2015

Update the draft manual and circulate for comments to the TSG by end of May

Receive comments of the TSG members by end of June

Produce next version of the manual and circulate to TSG by end of August

Receive final comments of TSG by mid-September

Submit final draft to EG of international statistical classifications for approval by end-September

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Points for Discussion

Expert Group on Classifications - 2015

1. Do you have comments on the outcome of the global consultation?

2. Do you agree with the proposed next steps ?

3. Should the BEC, rev.5 be brought to the Statistical Commission for endorsement?

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Thank you