The Central Product Classification (CPC), developed by the United Nations Statistics Division (UNSD), is an international standard for classifying goods and services. The latest version, CPC Version 2.1, provides a comprehensive and structured system to categorize products for statistical, trade, and economic analysis. This classification system is widely used by governments, businesses, and international organizations to ensure consistency in data reporting and comparison across countries.
1. What is the CPC?
The CPC is a detailed classification system that covers products (goods and services) based on their physical characteristics, origin, and function. It serves as a framework for:
- Economic statistics (e.g., national accounts, industrial production)
- Trade statistics (e.g., import/export data)
- Market research and business analysis
- Policy-making and regulatory compliance
The CPC is harmonized with other classification systems, such as the Harmonized System (HS) for trade and the International Standard Industrial Classification (ISIC) for economic activities.
2. Key Features of CPC Version 2.1
CPC Version 2.1, released in 2015, includes several updates and refinements over previous versions. Key features include:
2.1. Expanded Coverage of Services
Unlike earlier versions that focused more on goods, CPC 2.1 provides a more detailed classification of services, reflecting the growing importance of the service sector in the global economy.
2.2. Harmonization with Other Classifications
CPC 2.1 aligns with:
– HS 2017 (for goods)
– ISIC Rev. 4 (for economic activities)
– SNA 2008 (System of National Accounts)
This ensures compatibility across different statistical frameworks.
2.3. Improved Structure and Detail
The classification follows a hierarchical structure with 5 levels of granularity:
– Sections (1-digit)
– Divisions (2-digit)
– Groups (3-digit)
– Classes (4-digit)
– Subclasses (5-digit)
For example:
- Section 5: Construction services
- Division 53: Building completion and finishing work
- Group 531: Installation services
- Class 5311: Installation of electrical wiring and fittings
- Subclass 53110: General installation services of electrical wiring
2.4. New and Updated Product Categories
CPC 2.1 introduces new entries for:
– Digital products and IT services (e.g., cloud computing, software licensing)
– Environmental goods and services (e.g., waste management, renewable energy)
– Advanced manufacturing products (e.g., 3D printing, robotics)
3. Applications of CPC 2.1
3.1. Trade and Customs
Governments use CPC codes to classify goods and services in customs declarations, ensuring smooth international trade and tariff applications.
3.2. Economic and Industrial Statistics
National statistical offices rely on CPC to collect and analyze data on production, consumption, and GDP contributions.
3.3. Business and Market Analysis
Companies use CPC codes to:
– Compare product performance across regions
– Identify market segments
– Track industry trends
The Central Product Classification version 2.1:
