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ESA/STAT/AC.124/89April2007UNITEDNATIONSDEPARTMENTOFECONOMICANDSOCIALAFFAIRSSTATISTICSDIVISIONMeetingoftheExpertGrouponInternationalEconomicandSocialClassificationsNewYork,16-18April2007FuturerevisionoftheClassificationbyBroadEconomicCategories(BEC)UNSD-3-FuturerevisionoftheClassificationbyBroadEconomicCategories(BEC)ProposalbyUNSDThisisaproposaltoputanewworkprogrammeregardingBEContheagendaoftheExpertGrouponInternationalEconomicandSocialClassifications.Theproposalis(1)thatBECshouldbereviewedtoensurethatitscurrentstructurerelatingtotransportablegoodsisstillappropriate,(2)thatthedraftcorrelationtable1betweentheBECcategoriesandsubheadingsofHarmonizedCommodityDescriptionandCodingSystem,2007edition,shouldbereviewed,and(3)thatapossibleextensionoftheBECtoservicesproductsshouldbeconsideredaswellasthedevelopmentofalinkbetweentheBECandtheCentralProductClassification(CPC).BackgroundinformationTheBECwasinitiallydevelopedbyUNSDforinternalpurposestoreclassifymerchandiseimports(reportedintermsofSITC)intotheproductcategoriesrelevanttotheSNA.Withtime,manycountriesstartedtouseBECforavarietyofpurposesincludingeconomicanalysisandsettingtariffs.UNSDhascreatedcorrespondencetablesbetweenBECandeachnewrevisionofSITCandtheHarmonizedSystem.SincetheCPCisbasedonHS,italsocanbecorrelatedtoBEC.However,overtheyearstheBECstructureremainedunchangedandtherulesforassigningparticularSITCorHSheadingstoBECclearlyneedrevisitingifBECistocontinueasausefultool.TheissueisquiteurgentasHS07andSITC,Rev.4arealreadyinforce.QuestionisalsoraisedaboutextendingBECtotradeinservicesusingCPCservicescategoriesasastartingpoint.UNSDpreparedadraftcorrespondencetablebetweenHS07andBEC,whichwassubmittedtotheEGforareview.TheEGisrequestedtocommentonthestatusandmodalitiesofthepossiblefuturerevisionofBEC.TheintroductorypagesofthemostrecentBECpublication(2000)aregivenintheannexandtheyincludeafulloverviewofitsheadings.1See(SITC).22.Followingthisrecommendation,theStatisticalOfficeoftheUnitedNationsSecretariatpreparedadraftclassificationofinternationaltradebyBroadEconomicCategories(BEC),whichwouldprovideforsuchacompilation.SuccessivedraftsoftheclassificationwereconsideredbytheStatisticalCommissionatitsfourteenthandfifteenthsessionsandwerereferredbacktotheStatisticalOfficebytheCommissionwithspecificguidelinesforfurtherstudyandconsultation.Atitssixteenthsession,theCommissionreviewedafurtherdraft(E/CN.3/408)whichhadbeenpreparedbytheStatisticalOfficebasedupontheguidelinesoftheCommissionandthecommentsofselectedcountriesandinternationalorganizations.TheCommissionwasunanimousinconsideringthatthedraftclassificationmettherequirementswhichithadspecifiedatprevioussessionsandbyitsresolution9(XVI)requestedtheSecretary-Generaltopublishtheclassificationforinternationaluseandasaguidelinefornationaluse.33.TheoriginalBECwasdefinedintermsofdivisions,groups,subgroupsandbasicheadingsoftheStandardInternationalTradeClassification,Revised4andissuedin1971.5TheBEChasbeenrevisedtwicesince1971.ThefirstrevisiondefinedBECintermsoftheStandardInternationalTradeClassification,Revision26andwasissuedin1976.7ThesecondrevisiondefinedBECintermsoftheStandardInternationalTradeClassification,Revision38andwasissuedin1986.9EachoftheserevisionswaspreparedandissuedinresponsetorequestsbytheStatisticalCommission10,11andresolutionsadoptedbytheEconomicandSocialCouncil(resolution1948(LVIII)of7Mayl975andresolution1985/7of28Mayl985).ThepresentrevisionoftheBECisthethirdanditispublishedfortechnicalreasonsonly,toreplacethesecondrevision,inordertoprovidefulldetailsoftheSITC,Rev.3headingscorrespondingtoBECcategories41*and62*.Thesecategorieswereincompleteinthesecondrevisionduetotheomissionofonepage.Thepresentrevisionalsoincorporatesthecorrigendumthathadbeenissuedtothesecondrevision,andarevisedintroduction.2OfficialRecordsoftheEconomicandSocialCouncil,1965,Thirty-ninthSession,SupplementNo.13(E/4045-E/CN.3/339,para.30).3Ibid.,1970,FiftiethSession,SupplementNo.2(E/4938-E/CN.3/417),chap.XIII.4UnitedNationspublication,SalesNo.61.XVII.6.5ClassificationbyBroadEconomicCategories(UnitedNationspublication,SalesNo.E.71.XVII.12).6UnitedNationspublication,SalesNo.E.75.XVII.6.7ClassificationbyBroadEconomicCategoriesDefinedinTermsofSITC,Rev.2(UnitedNationspublication,SalesNo.E.76.XVII.7).8UnitedNationspublication,SalesNo.E.86.XVII.12.9ClassificationbyBroadEconomicCategoriesDefinedinTermsofSITC,Rev.3(UnitedNationspublication,SalesNo.E.86.XVII.24).10OfficialRecordsoftheEcon