United Nations Workshop on International Economic and Social Classifications 24-27 November 2008 UNESCAP Office, Bangk

1. State of Implementation of Industry and Product Classifications in the Philippines By Ms. Severa B. De Costo Statistical Coordination Officer VI, NSCB United Nations Workshop on International Economic and Social Classifications 24-27 November 2008 UNESCAP Office, Bangkok, Thailand

2. State of Implementation of Industry and Product Classifications in the Philippines Outline of Presentation Introduction Implementation and Use of Industry and Product Classifications Issues Future Directions

3. I. Introduction National Statistical Coordination Board (NSCB) • serves as the highest policy-making and coordinating body on statistical matters in the Philippines. • one primary function-prescribe uniform standards and classification systems in the generation of official statistics

4. I. INTRODUCTION Four ( 4) existing industry and product classifications in the country: Philippine Standard Industrial Classification (PSIC) Philippine Standard Commodity Classification (PSCC) (3) Philippine Central Product Classification(PCPC) (4) Philippine Classification of Commodities by Broad Economic Categories (PCCBEC)

5. I. INTRODUCTION Four ( 4) Industry and Product Classifications Philippine Standard Industrial Classification (PSIC) -a classification of industries prevailing in the country according to their specific economic activities; Philippine Standard Commodity Classification (PSCC), - which is a detailed classification of all commodities that enter the Philippine trade;

6. I. INTRODUCTION Four ( 4) Industry and Product Classifications (3) Philippine Central Product Classification(PCPC), - which is a system of different but interrelated classifications of economic activities and goods and services; (4) Philippine Classification of Commodities by Broad Economic Categories (PCCBEC) - which is a classification of commodities that enter the Philippine trade according to their main end use;

7. I. INTRODUCTION The NSCB periodically revises and amends these classifications • to systematize improvement of the classification over-time • to keep it current and relevant, more responsive to existing social, economic and technological reality • to maintain conceptual consistency and international comparability

8. I. Introduction The amendments and revisions are done in accordance with: Approved Policy on the Revision and Amendment of the Philippine Standard Classification Systems - that was prescribed for adoption in the Philippine Statistical System (PSS) thru NSCB Board Resolution No. 1, Series of 2004

9. II. Implementation and Use of Classifications Philippine Standard Industrial Classification (PSIC) - a classification of industries prevailing in the country according to their specific economic activities; - developed to classify establishments according to the type of economic activity they are engaged in.

10. Used in classifying economic activity in the establishment and household surveys and population census conducted by the National Statistics Office (NSO). In the compilation of administrative-based data such as those from the Securities and Exchange Commission (SEC) II. Implementation and Use of Classifications Current Uses of the PSIC

11. In classifying enterprises/firms by the Bureau of Internal Revenue (BIR) . Used in generating foreign direct investments (FDI) statistics by BSP , Phil. Economic Zone Authority (PEZA) , Clark Development Corporation (CDC), Board of Investments (BOI) and Subic Bay Metropolitan Authority. II. Implementation and Use of Classifications Current Use of the PSIC

12. In the compilation of statistics in the 1993 System of National Accounts (SNA) by NSCB Construction of Input-Output (I-O) Table by the NSCB II. Implementation and Use Current Use of the PSIC

13. II. Implementation and Use The Philippines has prepared the following PSIC: • 1954 PSIC based on the 1948 draft of • ISIC • 1966 PSIC based on the ISIC, Rev. 1 • 1977 PSIC based on the ISIC, Rev. 2 • 1994 PSIC based on the ISIC, Rev. 3.1 • 2008 Draft PSIC(based on Aug 2008 Final ISIC Rev 4) –ongoing review for approval of the inter-agency TWG and TC on Statistical Standards and Classifications for approval of the NSCB Executive Board NATIONAL STATISTICAL COORDINATION BOARD

14. Prepared the one-digit, 2-digit and 3-digit correspondence tables between the existing PSIC,ISIC Rev 3.1, ISIC Rev 4 and ASEAN CIC collaboration with the ASEAN Task Force on Harmonization of Statistical Classification from 2005- 2006 ( 5 workshops) Conducted a special study on vertical integration & boundary activities funded by European Union with ASEAN Secretariat Advocacy Workshop on the adoption of ISIC Rev 4 and ASEAN CIC in July 2006 and impact on the existing PSIC with the ASEAN Project consultant II. Implementation and Use Preparation of the 2008 PSIC (based on Aug 2008, Final ISIC REV 4)

15. Computed for the GVA of Industries to come up with the 4-digit level correspondence table between old and new PSIC, ISIC Rev 4 and ASEAN CIC Presented and discussed the 4-digit and 5-digit correspondence tables with the inter-agency Technical Working Group on Industrial Classifications (TWG-IC). The completed draft sections of 2008 PSIC (without the EAMs) was distributed for comments of members of the TWG-IC II. Implementation and Use 2008 PSIC based on Final ISIC REV 4

16. For final discussion with TWG-IC and review of the TC on Statistical Standards and Classifications (TC-SSC) for endorsment to the NSCB Executive Board. Target date of release is 2009 per Approved Policy on the Revision of Classification System in the PSS II. Implementation and Use 2008 PSIC based on Final ISIC REV 4

17. III. Issues and Challenges 1. Need to decide whether to incorporate the EAMS in the 2008 Revised PSIC because this will result in delay in revision and adoption 2. Need to improve the data generation using the revised classification. Generate new data sets before another international revision takes place.

18. III. Issues- General 3. To reflect the dynamic changes in Philippine industries and the economy as a whole,there is a need for need for more frequent revision and updating of industry and product classifications. More resources are needed,e.g. more frequent retraining of statistical personnel 4. On utilization , there is difficulty in linking the time series data based on the original and revised classification generated from industry surveys. The on-line Philippine business registry just started and still a work in progress

19. IV. Future Directions Based on the approved Policy on the Revision and Amendment of the Philippine Standard Classification Systems, the NSCB is expected to undertake the following activities related to industry and product classifications: Release of the 2008 Revised PSIC in 2009 which had been harmonized with the ASEAN CIC and patterned after ISIC Rev 4; and Revision of the existing 2002 PCPC and the 2004 PSCC

20. THANK YOU! URL: http://www.nscb.gov.ph e-mail: info@nscb.gov.ph