Page 268 - Invited Paper Session (IPS) - Volume 2

IPS243 Arvydas L.
are subject to revisions and changes over time because a statistical
classification must be up-to-date as recommended by United Nations
Statistical Division (UNSD) (Hoffmann & Chamie, 2002).
The first version of the FPC&D was published in 1973. This version was
superseded by the second version, published in 1979 and the last version was
adopted in 1981 (FAO & UNECE, 1981) and it is valid until now. A unique
numerical reference to each element and aggregate was used to identify
characteristics used for classification of subdivisions, namely stage of
manufacture, chief component material, technology applied and intended use.
Regarding coverage, the FPC&D cover the wood and wood-based products
for which FAO and United Nations Economic Commissions for Europe (UNECE)
collected statistics on a regular basis in 1981. Very important and useful part
of the FPC&D is the harmonization with the major international classification
by means of cross references, which are defined as indications of some degree
of coincidence between the two classifications, not of a one-toone
correspondence.
Other major international classifications, used mainly in trade statistics,
describe wood and paper products in more or less detailed level.
Harmonized System (HS) was developed by World Customs Organization
(WCO) as an international nomenclature for the classification of products.
According to Ramaschiello (2015) “more than 98% of the merchandise in the
international trade is classified using HS and almost all countries use it for
statistical and administrative purposes”. It is revised every five years and next
revision HS 2022 will be released in 2022. The WCO sets a threshold of USD
50 million of annual trade value for new subheadings and USD 100 million for
new headings (Ramaschiello, 2015). The classification in the HS is based on the
next criteria: (a) raw or basic material, (b) degree of processing, (c) use or
function, (d) economic activity. For the followed HS revision (HS 2022), next
new 50 subheadings are proposed by the Intersecretariat Working Group
(IWG) in order to improve classification of wood and paper products in the
international trade.
The Central Product Classification (CPC) covers all goods and services,
including transportable goods, non-transportable goods and services.
Distinguishing characteristics are the physical properties and the intrinsic
nature of the products, these include, for example, the raw materials of which
goods are made, the stage of production or the way in which goods are
produced or services rendered, the purpose or user category for which
products are intended and the prices at which they are sold. The industrial
origin is distinguished on the level of subclasses (UN, 2015). The CPC is revised
every five years. The latest version CPC Ver.2.1, which has been released in
2015, encompasses 21 new five-digit codes for forest products and it is better
harmonized with HS 2012 compared to previous one.

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