Do You Have Access to a Register Containing All Businesses

/ EUROPEAN COMMISSION
EUROSTAT
Directorate D: Business statistics
Unit D-3: Production and short term business statistics /

PHARE countries: an overview

PHARE countries have encountered various problems in their transition from national production surveys to PRODCOM. A possible way to classify them is:

• PRODCOM List and its adoption
• Methodology used
• Technical aspects of the survey: questionnaires, data validation, non-response, GESMES format.

Before introduction of PRODCOM List, PHARE countries used their national industrial production classifications. These nomenclatures reflected national industry characteristics and companies knew them well. To reflect these characteristics many PHARE countries worked out national versions of the PRODCOM List. The task was to ensure conversion between the new and old nomenclature and to keep time series. Now the PRODCOM List has been implemented at full level of detail in the majority of countries i.e. Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Romania, Slovakia, Slovenia.
It is the methodology frame that has turned to be the second big challenge for PHARE countries. The ambiguities of the PRODCOM Regulation have been discussed at the PRODCOM June 2001 meeting: definitions of observation unit, valuation methods, variables, coverage and representativeness. Another ambiguity not mentioned at the meeting has been how to report contract processing. Furthermore EUROSTAT is one main user; others are National Accounts and national markets with their specific features. For this reason the PHARE countries have had to combine purpose of the Regulation and national purposes.
Variables specified in the Regulation might not be sufficient for national purposes. Countries might want to survey sales of merchandise, stocks and/or production carried out abroad on contract basis. Countries might want to survey variables beyond Regulation demands. Total turnover of industrial activity of an enterprise is formed of sales of own produced goods, of repairs and maintenance, of assembly work, of contract processing. There might be turnover from bought and sold commodities without any processing. In case an industrial enterprise in a certain country sells products which have been actually produced by a company abroad, this should not be reported in the country according to the Regulation. These might be variables countries want to survey to specify total turnover of an enterprise. Some countries have included stocks in their PRODCOM survey to make input–output tables. This they do asked by National Accounts Divisions.
Technical aspects of the survey leave space for creative approach. The way questionnaires are constructed and sent, data are checked or non-response treated depends on national point of view and resources available. There are no limitations how national surveys will be proceeded.
However the last important step of PRODCOM implementation is about to be taken. This is preparation of data in GESMES format and transmission to EUROSTAT. Supplying the Commission with data is the last stage of fulfilling the requirements. EUROSTAT needs to know which PHARE and candidate countries will transmit data and when. The reasons for this are to get complete assessment of PRODCOM implementation in PHARE countries and to plan future data availability. Croatia, Estonia, Hungary and Lithuania have submitted this information, cf. the table below.

Availability of PRODCOM data from PHARE and Candidate countries

Country / Reference year / National publication / Transmission to Eurostat
Albania
Bosnia Herzegovina
Bulgaria / 2000 data / Before the end of 2001
Croatia / 1994 – 1997
1998, 1999 and 2000
2001 / During 2001
By the end of 2001
October 2002
The Czech Republic / 2000 data / July of 2001
Cyprus
Estonia
/ Expects annual data for 2000
2000, 2001 / Processed by end of Sep 2001
Autumn 2003.
Hungary / 1998 data / April 2002
Latvia / 1999 and 2000 data / Before the end of 2001
Lithuania / 2002 data / During 2003
Macedonia
Malta / Does not implement Prodcom yet.
Poland / 2000 data on 1000 products / July 2001
Romania / 2000, pilot study / July 2001
Slovakia
Slovenia
/ 2000 data / September, October 2001
Although PRODCOM data are ready to be prepared for delivery in a majority of countries there is still space for improvements such as data collection, timeliness, probably data processing. Communication between countries concerned could much contribute to better decisions. During PRODCOM implementation and in the frame of PHARE project candidate countries gained some help from EU experts. Now Eastern European countries are ready for transmission of data. They have already overcome variety of problems and developed advanced solutions. It is now time to start benefiting from that experience and to collaborate with each other.
Introduction to the overview
The aim is to give an overview on the PRODCOM surveys carried out in the PHARE countries with regard to the PRODCOM methodology. The PHARE countries are Bulgaria, the Czech republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia.
The author has used the following sources:

• the assessment reports on the PHARE countries carried out by Mr Nino Platteel
• the questionnaires on the PRODCOM survey completed by the countries
• the speeches of the PHARE representatives at the 20 th SPC Preparatory Committee meeting concerning PRODCOM on 19-20 November, 2001.

The column named ‘Comments’ expresses either the views of the author or the views of the country concerned. It means at giving additional details of the PRODCOM survey in the PHARE countries.
It should be mentioned that CZ, HU, PL and RO have been assessed in the beginning of 2000 and the other countries in 2001. The transition to the PRODCOM methodology has required the change both of the existing methodology and the legal framework. This process might have taken several consecutive years. Improvements such as timeliness, data collection, data processing or methodological issues might have already been introduced or about to be introduced. For this reason it is recommended the periodical update of the paper.

1

February 2002Dilyana Stoycheva, PRODCOM

National PRODCOM methodologies in the PHARE countries: Question by question
Questions / Answers of countries / Comments
1 / Do you have access to a register containing all businesses? / All countries have
2 / Is this register compliant with the requirements of the Regulation on Registers[1]? / BG – yes
CZ – yes, partially; 1 legal unit=1 enterprise
EE – no
HU – no
LV – yes, particularly one legal unit= one enterprise
LT – yes
PL– yes
RO – yes
SK – yes
SL – yes / CZ - Several projects have been going on to make the Register fully compliant with the Regulation: introduction of LU and KAU, improvement of definition of enterprise. Data collection for KAU has been planned to start with 2001 or 2002. Attempts have been undertaken to improve the information on the death of enterprises via linking with the tax registers. No LUs have existed. KAU partially introduced.
EE - No LUs have existed
HU - No LUs have existed.
3 / Is the activity classification NACE Rev.1 being used to classify the statistical units in the register? / BG– yes
CZ – yes
EE – yes
HU – yes
LV – yes
LT – yes
PL – yes
RO – yes
SK – yes
SL – yes / RO - The National classification with additional breakdowns has been used. A new version has been developed, which would be fully in line with NACE Rev.1. It has been supposed to be adopted by government decision before the end of 2000 and to be in force since 2001.
4 / If yes, which types of units are classified in the register according to NACE? / BG – Enterprise, LU
CZ – Enterprise
EE – Enterprise, LKAU
HU – Enterprise, KAU
LV – Enterprise
LT – Enterprise
PL – Enterprise, LU
RO – Enterprise
SK – Enterprise, LU
SL – Enterprise, KAU, LKAU
5 / What information is available for updating the register? / BG – annual report for all enterprises carrying out an activity
CZ – professional chambers registers, commerce register, trade register of small
businesses, social security register, VAT register and tax register, statistical surveys results
EE – Central Commercial Register, Tax Office, annual ‘Local KAU’ survey
HU– monthly employment survey, structural business survey, tax files, questionnaires to update register
LV – Statistical Business Register Survey, regular and annual surveys
LT – Balance sheets, declarations from tax inspections, employment information from social security organisations, custom declarations, monthly and annual surveys
PL – registration of enterprises, Ministry of Justice (bankruptcies)
RO – various administrative registers, structural surveys, register survey
SK – professional chambers registers, commerce register, trade register of small businesses, social security register, VAT register and tax register, statistical surveys results, annual surveys, register survey
SL – All register bodies, information from enterprises / HU, LV: After introducing LU in HU and LV and with the possibility HU and PL to update their register independently from administrative ones the requirements on the PHARE countries registers will be fulfilled
RO: Information coming from statistical surveys is planned to be used in the sake of updating the register.
6 / Is it possible to update the statistical register independently of the administrative register? / BG – yes
CZ – yes
EE – yes
HU – yes
LV – yes
LT – yes
PL – no
RO – yes
SK – no
SL – yes / PL – Information from statistical surveys can not be used to update the register. The main reason is the protection of individual data obtained via statistical surveys. A system that will allow the use of statistical data on that purpose was being worked on.
7 / If you conduct a survey on industrial production, which type of statistical units are taken into account in the survey population? / BG – enterprise
CZ – enterprise
EE – enterprise
HU –enterprise
LV– enterprise
LT – enterprise
MT – enterprise
PL – enterprise
RO – enterprise
SK – enterprise
SL – LKAU
8 / Assuming the statistical units in the survey on industrial production are classified according to NACE, do the ones in the Sections C, D and E cover all industrial production or is there also industrial production that takes place in units classified, according to their main activity, in other Sections of NACE? / BG – yes
CZ – no
EE – yes
HU –yes
LV –yes
LT – yes
PL – yes
RO – yes
SK – yes
SL – yes / BG - Non industrial enterprises with turnover from industrial activity over 50000 LV (1 LV=0.51 EURO) are included in survey population.
HU - Only a part of industrial activities of non-industrial enterprises has been covered.
PL - Enterprises classified with manufacturing industry as a secondary activity submit data monthly if they have 50 or more employees. Enterprises classified with manufacturing industry as a secondary activity submit data annually if they have 5 or more employees.
9 / Do you record production carried out by domestic companies on behalf of foreign companies? / BG – no
CZ –no
EE – yes
HU –yes
LV– yes
LT – yes
PL – yes
RO – yes
SK – yes
SL – yes
10 / Does your data collection system make a distinction between production for own account and production on behalf of others? / BG – yes
CZ –yes
EE – yes
HU – yes
LV– yes
LT – yes
PL – yes
RO – yes
SK – no
SL – yes
11 / How do you valuate production on behalf of others?
The fee received from the ordering company, the (possibly estimated) real market value of the commodity /
YES:
BG, CZ, EE, HU, LV, LT, RO, SK, SL / PL does not collect value data on behalf of others
12 / In case an industrial enterprise sells products that have actually been produced by a company in another country, this should not be taken into account in Prodcom. Would this be possible in your statistical system? / BG – no
CZ –no
EE – yes
HU – yes
LV– yes
LT – yes
PL – no
RO – yes
SK – no
SL – yes / PL - Production on contract is included in total production
B. Product list
1 / Is the Prodcom List in your language finalised at the full level of detail? / BG– yes
CZ – yes
EE – yes
HU – yes
LV – yes
LT – yes
PL – yes
RO – yes
SK – yes
SL – yes
2 / If a national version of the Prodcom List exists in your country, does it have legal status? / BG– yes
CZ – yes
EE – yes
HU – yes
LV – yes
LT – yes
PL – no
RO – no
SK – yes
SL – no
3 / If a national version of Prodcom List exists in your country, does it have a legal status? / BG– yes
CZ – yes
EE – yes
HU – yes
LV – yes
LT – yes
PL – no
RO – yes
SK – yes
SL – no
4 / If existing, is the Prodcom List used for the survey on industrial production at least at the 8-digit level? / BG– yes
CZ – yes
EE – yes
HU – yes
LV – yes
LT – yes
PL – yes
RO – yes
SK – yes
SL – yes / RO: From year 2000
5 / If the Prodcom List is used at a less detailed level, please specify / PL - Partly at the level of 6-digit
CPA
RO - The presently used PRODIND does not cover all products
6 / Is the Prodcom List used for other purposes than production statistics? / BG– yes
CZ – yes
HU – yes
EE - no
LV – no
LT – no
PL – no
RO – no answer
SK – yes
SL – no / HU - Sales value of products serve as weighing system of PPI;
Product statistics are data source for commodity flow (input-output system).
7 / Do you annually update the Prodcom List? In other words do you, for a given reference year, use the Prodcom List applicable for that year? / BG– yes
CZ – no
EE – yes
HU – yes
LV – yes
LT – no
PL – no
RO – no answer
SK – yes
SL – no / PL – plans to update the PRODCOM List annually but the list from the previous year is used for the survey – there is no enough time for preparing the questionnaires based on the Prodcom List from the reference year.
8 / Some countries do have additional detail in NACE, CPA and Prodcom for national purposes. That can have implications for the introduction of the annual updates. Do you have any such experiences? / BG– yes
CZ – no
EE – yes
HU – yes
LV – yes
LT – no
PL – yes
RO – yes
SK – yes
SL – yes
9 / As stated in the General Notes to the Prodcom List, the descriptions, because of the limited space available, do not always cover the entire content of the heading. The heading is defined by its reference to the Combined Nomenclature. Furthermore in case of doubt about the contents of a heading the explanatory notes to the foreign trade nomenclature offer a useful classification guide.
Did you develop such explanatory notes in your language? / BG– yes
CZ – no
EE – yes
HU – yes
LV – yes
LT – yes
PL – yes
RO – no
SK – no
SL – yes
10 / If not are you planning to elaborate any classification guide for Prodcom? / BG– not relevant
CZ – no
EE – not relevant
HU – not relevant
LV – not relevant
LT – not relevant
PL – not relevant
RO – no
SK – no
SL –not relevant
C. Survey characteristics
1 / Do you record production sold on the basis of the invoices; i.e. production sold as defined by Prodcom? / BG– yes
CZ – no
EE –yes
HU – yes
LV – yes
LT – yes
PL – yes
RO –yes
SK – no
SL – yes / CZ: The value is the sales value of the goods, i.e. their value at the market, if necessary partly estimated.
SK has used the Prodcom List for collecting data on total
production and for the calculation of Industrial Production Index since 1998. The observation of production sold has started with the monthly production statistics.
Data on production sold have been available for the first time with the annual survey of 2001.
2 / The following is a list of elements that do play a role in the valuation of the products. Could you for each of the elements indicate whether or not it is included in the value of production sold you observe in your country.
Value added tax / NO
BG, CZ, EE, HU, LV, LT, PL, RO, SK, SL
2 / Taxes on production / NO
BG, CZ, EE, HU, LV, LT, PL, RO, SK
YES
SL
2 / Other indirect taxes, duties and levies (like for example taxes on alcohol) / NO
BG, CZ, EE, HU, LV, LT, PL, RO, SK, SL
2 / Packaging costs / YES
BG, CZ, EE, HU, LV, LT, PL, RO, SK, SL
2 / Costs of transportation carried out by the producing unit itself / BG– no
CZ – yes
EE – yes
HU – yes
LV – no
LT – yes
PL – yes
RO – yes
SK – yes
SL – no
2 / Costs of transportation carried out by others, but invoiced via the producing unit / BG– no
CZ – yes
EE – no
HU – yes
LV – no
LT – no
PL – no
RO – yes
SK – no
SL –no
2 / Discounts to customers, i.e. do you deduct discounts granted to customers from the value / BG– yes
CZ – no answer
EE –yes
HU – yes
LV – no
LT – yes
PL – yes
RO – no
SK – no
SL –yes
2 / Subsidies on products / BG– no
CZ – no
EE –no
HU – yes
LV – no
LT – no
PL – no
RO – no
SK – no
SL –yes
2 / Some of the elements mentioned are not always available at the level of detail of the Prodcom List. If applicable, how do you deal with that? / SL – Enterprises are asked to report the value of the production sold according to the instructions printed in the questionnaire.
3 / Concerning the physical volume do you apply the units of measurements indicated in the Prodcom List? / BG– yes
CZ – yes
EE – yes
HU – yes
LV – yes
LT – yes
PL – yes
RO – yes
SK – yes
SL –yes / EE – ask in any case units according to PRODCOM List, in some of cases we ask additional units and convert these to the unit required by the PRODCOM List.
HU – applies the measurement unit of the Prodcom List, but parts and accessories of products are surveyed in value and in not physical measurement unit (piece, kg etc)
4 / Additional details in the Prodcom List used for national purposes can cause problems when applied with specific physical units. Do you use specific measurement units for additional national details? / BG– yes
CZ – yes
EE –yes
HU – yes, but not only for the additional details
LV – no
LT – yes
PL – yes
RO – no
SK – yes
SL –no / HU - uses specific measurement units for some products. For example equivalent of bricks (pieces of bricks converted into an equivalent size of bricks)
5 / Are there any problems related to the definition of specific units of measurements you want to mention? / EE – Main difficulties have arisen in the NACE class 20.30 – ‘Manufacture of builders carpentry and joinery’- windows and their frames and doors, their frames and thresholds. According to PRODCOM they must be collected in p/st, the Estonian enterprises use m2. Another problem concerns the manufacture of apparel -curtains and bed linen has to be collected in two units – in kg and p/st. The enterprises do not use the kg-s, they use only p/st.There are problems with Nace class 36.12, 36.13, 36.14 – manufacture of furniture (especially furniture for shops, bedrooms furniture and kitchen furniture). The enterprises do not have production in volume. They have only value of orders which consists of the design and the production value.
SL – There are some problems with different units concerning PRODCOM and CN. In some cases besides PRODCOM physical units, SL has additional units. The problems are when very different products are in the same PRODCOM code (e.g. machinery, furniture, etc).
6 / Do you apply the concept total production? / BG– yes
CZ – yes
EE –yes
HU – yes
LV – yes
LT – yes
PL – yes
RO – yes
SK – yes
SL –yes / HU - In the Hungarian production survey the “total production”, “sold production” and “sales value” are surveyed. But it is necessary to mention, that in the Hungarian production statistics the basic variable traditionally is total production” (and not “production sold” like in PRODCOM statistics). If data users ask for product data, they need the “total production” of a product item“.
7 / Is total production available for all the headings for which it should be collected according to the Prodcom List? / YES
BG, CZ, EE, HU, LV, LT, PL, RO, SK, SL
8 / How do you collect information on total production?