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Workshop on International Classifications MONGOLIA- CLASSIFICATION SYSTEM 19-21 March 2013, Chisinau, Moldova Ariunaa Khurelbaatar /officer of ESD, MESD/ Introduction I. General information /Revision status and structure/ II. Use of classifications III. Encountered problems IV. Future challenges 2 I. General information Classification Systems • For international comparability • For harmonization of different framework • For better analysis of statistics • To facilitate data collection, processing and analysis 3 I. General information Classification Systems in Mongolia • International Standard Industrial Classification (ISIC) • Central Product Classification (CPC) • Classification of Individual Consumption According to Purpose (COICOP) • Classification of the Function of Government (COFOG) • Classification of the Purposes of NPISH (COPNI) 4 I. General information Implementation of Classifications ISIC Official adoption First Last 1998 Apr, 2011 CPC 2001 Apr, 2011 COICOP 2005 2005 COPNI - 2011 COFOC 2010 by MOF 5 I. General information Classifications structure Classification CPC ISIC COICOP COPNI Division 10 21 14 9 Subdivision 71 88 Group 325 238 57 24 Subgroup 1268 419 Class 2749 158 29 National subclass 3495 /7 digit/ 510 6 II. Use of Classification The new modifications to the CPC 2.0, ISIC 4 in 2011 • ISIC Improved official adoption ISIC 2 ISIC 3 ISIC 3.1 ISIC 4 ISIC 4 1998 2002 2004 2006 2011 Improved official adoption • CPC CPC 1.0 CPC 1.1 CPC 2.0 CPC 2.0 2001 он 2003 он 2007 он 2011 он 7 II. Use of Classifications Classifications uses No Classification Organizations and Purpose of Use 1 ISIC 4.0 General Authority for State Registration, General Department of Taxation (registration) 2 CPC 2.0 General Department of Taxation (VAT report of enterprises) 3 COICOP GDP expenditure approach, Household socio economic survey (former Household income and expenditure survey) 4 COPNI GDP, Establishment census, Business register 5 COFOC NSO, Ministry of Finance Classifications uses Business register: A double-coding (both old and new codes) based on conversion tables and surveys Structural business statistics short term statistics (monthly and quarterly survey): ISIC 3.1, New ISIC versions, use dual coding planned to 2013 for a short term statistics, National accounts ,GDP: use ISIC 4, Time series for 1990-2013 was recalculated in 2011-2013, What method do you use for calculating previous years in the new classifications?: •Dual coding •Benchmark, coefficients (it is in methodology of GDP of Mongolia) •Other methods 9 III. Problems Encountered Outsourcing – manufacturing – Different type of outsourcing (labour, support functions, part or the complete of production process) – A unit classified in Manufacturing can have two types of outputs: • a manufactured good identified in the product classification • a manufacturing service – “Manufacturer” has to be ownership of the good III. Problems Encountered Section J: “Information and Communication” Division 58: Publishing activities Division 59: Motion picture, video and television programme production, sound recording and music publishing activities Division 60: Programming and broadcasting activities Division 61: Telecommunications Division 62: Computer programming, consultancy and related activities Information service activities Division 63: III. Problems Encountered Changing of Terminology • Holding company • Head office • Ancillary units (surveys have to be conducted based on establishments?) • R&D • Intellectual property III. Problems Encountered 1. ISIC 3.1 "G","Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods "K","Real estate, renting and business activities" ISIC 4.0 "S","Other service activities” III. Problems Encountered 2. ISIC 3.1 7010.Real estate activities with own or leased property” 3. D. Manufacturing 22. Publishing, printing and reproduction of recorded media ISIC 4.0 0990.Support activities for other mining and quarrying” J. Information and communication 58. Publishing activities IV. Future challenges 1. Develop survey questionnaires for new sectors and updated sectors 2. Update previous time series, recalculating process 3. Usage of newly updated classifications 4. Update CPC more detailed level 5. Manufacturing service index for GDP and other NA’s estimations 6. Mining support service activities for GDP and other NA’s estimations THANK YOU FOR YOUR ATTENTION