PRODCOM
NOTES ON METHODOLOGY
Sources and methods of data collection
The results of the statistical PRODCOM Survey on the Industrial Production (IND-21/PRODCOM) are the source of all data presented. The Survey has been carried out by the Croatian Bureau of Statistics on the basis of the Official Statistics Act (NN, Nos 25/20 and 155/23), the Programme of Statistical Activities of the Republic of Croatia 2021 – 2027 (NN, No. 31/18) and according to the Statistical Standards for the PRODCOM Survey on Industrial Production, the integral part of which is also the Nomenclature of Industrial Products − NIP. The above-mentioned documents are available on the website of the Croatian Bureau of Statistics: https://dzs.gov.hr/en.
The subject of the PRODCOM Survey, as in the previous surveys, is a probable and actual total production of industrial products, the internal consumption of own production (intra-unit consumption) intended for sale in physical volumes as well as the sale of industrial products, in physical volumes and values, and their export to third parties or the market. It does not include any production used, or to be used, in further processing in local units that belong to the same enterprise (reporting unit). It includes production carried out on own account as well as production carried out under a contract with a principal.
The data on the production are presented at the level of products defined in the NIP and according to the determined units of measure, while values are presented in thousands of euros. The data were collected for processing on the level of the Republic of Croatia and by counties. All the data in the PRODCOM Survey referred to the reporting period of one calendar year, that is, to the period from 1 January to 31 December. The data presented refer strictly to the production carried out on the territory of the Republic of Croatia. It does not include production carried out outside the territory of the Republic of Croatia on behalf of its local units or enterprises.
The PRODCOM Survey on Industrial Production of the Republic of Croatia has been harmonised with the PRODCOM Survey within the EU in order to fulfil the obligation of the Croatian Bureau of Statistics from the EU membership and enable comparability of national data on industrial production with the European and world data.
PRODCOM indicators of industrial production
As already mentioned, the presented data belong to the so-called industrial production statistics and are derived from the results of the annual PRODCOM surveys on industrial production (previously called the Annual Industry Report). The national PRODCOM Survey is designed to provide detailed information about the national market and to harmonise them with foreign trade statistics via correspondence tables linking them with the Customs Tariff of the Republic of Croatia (CT). In that way, it is possible to compare the national and the international markets at a detailed level of individual products/goods, which is the very aim of the PRODCOM Survey within the EU, with which it has been harmonised. All the data at the level of individual products were collected on the basis of the Nomenclature of Industrial Products – NIP, derived from the PRODCOM List of the EU, which is an integral part of EU regulations regarding the PRODCOM Survey within the EU.
Comparability of the PRODCOM Survey data
The data from the PRODCOM Survey of the Republic of Croatia were collected by using harmonised concepts and definitions established by the Statistical Standards for the PRODCOM Survey on Industrial Production and are presented in Tables 1 – 6. The data are also comparable with the PRODCOM statistics defined by the EU, including the versions of the PRODCOM List in force for the reporting years at the 8-digit level of products from both nomenclatures.
PRODCOM coverage and units
Reporting units in PRODCOM Survey are all trade companies and other legal entities and tradesmen and parts thereof employing 10 and more persons, that were engaged in industrial production or performed industrial services (own production or contract work) within B, C, D and E sections (except division 39) of the NKD 2007 in an annual reporting period.
Target statistical units are industrial enterprises and local units of industrial and non-industrial enterprises that produce products defined by the NIP (in line with the PRODCOM List). When profiling statistical units, the county principle is taken into account in cases where the observed unit is engaged in industrial production on the territory of several different counties, e.g. in five counties, that statistical unit is further divided into five local units. In order to stay in line with the EU PRODCOM regulations, the production intended for further processing in the same or in other local units of the same enterprise is not considered as their output. Tradesmen are covered by these surveys, while statistical units or parts thereof that are "physically" situated outside the territory of the Republic of Croatia are not. The coverage of reporting and statistical units is defined in the Directory of Statistical Units for PRODCOM, which is annually created and updated by the Industry, Energy and Information Society Department of the Croatian Bureau of Statistics. Data sources used in the annual updating of the Directory are the Statistical Business Register data, other business statistics surveys on industry as well as other secondary data sources.
A special criterion for the coverage of statistical units in PRODCOM involves ensuring a sufficient coverage of statistical units for each class of industry (from 05.10 to 39.00) from the NKD 2007 so that together they have a share of at least 90% of gross value added of each individual class of industry from the NKD 2007. If this criterion is not met, the coverage of particular classes of industry from the NKD 2007 will be extended to those statistical units employing less than 10 persons, e.g. small industries such as the bakery industry, printing and the like.
PRODCOM concepts and definitions
The concepts and definitions used in the PRODCOM Survey of the Republic of Croatia are harmonised with those used in the PRODCOM Survey within the EU. They provide a further description of some of the terms used for PRODCOM statistics within these Notes on Methodology. However, these descriptions are not intended to bring definitive meanings of these words and, when used in other contexts, they may have different meanings. Their purpose is merely to help the users of the PRODCOM data to interpret them correctly. Industrial products of the NIP correspond to the EU PRODCOM List, the same way the previous versions of the NIP corresponded to the reference versions of the PRODCOM List.
Enterprise is the smallest combination of legal units that makes an organisational unit for the production of goods and services, which has a certain degree of decision-making autonomy, especially in controlling its own resources. An enterprise performs one or more activities at one or more locations. An enterprise cannot be but a single legal unit.
Local unit is an enterprise or part thereof (e.g., workshop, factory, plant, office or mine) situated in a geographically defined location. At each such location one or more persons employed (sometimes only part-time) perform a certain industrial activity for one and the same enterprise. In this PRODCOM Survey a local unit is considered a geographically defined territory of counties (administrative criterion). According to convention, if one local unit extends through several neighbouring counties, the mailing address will be a determining factor.
NIP
It is a hierarchically structured Nomenclature of Industrial Products (including services), created for measuring the annual industrial production in volume and value terms. It represents a more detailed national version of the EU PRODCOM List. It covers all products and services resulting from performing activities from sections B, C, D and E (except division 39) of the NKD 2007. The structure of the NIP corresponds at all levels to that of the NKD 2007, the KPD 2015 and the PRODCOM List, which was further extended on the national basis. The NIP is linked with the Customs Tariff of the Republic of Croatia (CT) through correspondence tables, in the same way the PRODCOM List is linked with the EU Combined Nomenclature (CN). It is updated at the beginning of each year according to the updates made to the PRODCOM List.
PRODCOM
It is a name for the production statistics on the EU’s industrial production, established by the Council Regulation (EEC) No 3924/91 and its implementation by the Commission Regulation (EC) No 912/2004. The acronym has been derived from the French title "Production Communautaire" (Community Production). The PRODCOM Survey is designed to supply information about national EU markets. Its subject consists of about 4 000 compulsory industrial products presented in the PRODCOM List. In order to record the international dimension of these markets, a correspondence table between production statistics and foreign trade statistics has been established by harmonising the EU PRODCOM List with the EU Combined Nomenclature (CN) so that the production statistics data are comparable with the foreign trade data on the level of products/goods. This allows the calculation of the apparent consumption.
PRODCOM List
It is a list of products, goods and services listed in the PRODCOM Survey headings. The PRODCOM List1) comprises 3 800 compulsory headings, principally used for the compilation of detailed EU production statistics. The PRODCOM List is based on the Statistical Classification of Products by Activity – CPA, version 2.12) (= KPD 20153)) and linked with the Combined Nomenclature (CN) of the EU via correspondence tables. It is not a hierarchically structured classification, like the NIP, and that is why it is titled “List”, although products are divided into "divisions" that correspond to the divisions of the NACE Rev. 2 or the NACE Rev. 1.1 (PRODCOM List 2007 and prior versions) and cover the most significant products and services from sections B and C of the NACE Rev. 2, apart from some exceptional cases. The PRODCOM Survey headings consist of items or groups of items from the CN in order to allow comparability of foreign trade and production data and are therefore updated at the beginning of each year according to the changes in the CN.
Product
A product is the outcome of some industrial activity. It is a generic term applied to products that have a physical dimension and to industrial services. According to the concept of the PRODCOM Survey of the Republic of Croatia, it is defined by the Nomenclature of Industrial Products – NIP, which is a national version of the EU PRODCOM List. A finished product is any product that reached a certain stage of processing or completion in the process of production, so that it is listed under a separate code and heading in the NIP. This term also covers all aspects of finishing the product, which includes cleaning, packing, quality checking, classification, and the like.
Industrial services
This term covers the services of treatment, repairs and maintenance as well as assembly work (fitting, i.e. installation). Industrial services are normally reported separately for each rendered service listed in the NIP and their value is expressed in thousands of euros, mainly in form of a provision for a rendered industrial service. Only separately invoiced services are recorded. Special rules for presenting data for certain types of industrial services exist in the previously mentioned PRODCOM standards. Some industrial services are classified according to the NKD 2007 as non-industrial services, e.g. Maintenance and repair of motor vehicles (section G, class 45.20), Repair of computers and personal and household goods (section S, division 95), Publishing activities, including software publishing (section J, division 58), Sound recording and music publishing activities (section J, division 59), Computer programming, consultancy and related activities (section J, division 62) and Information service activities, including data processing (section J, division 63) and, therefore, they are not a subject of the IND-21/PRODCOM Survey.
Production sold
Production sold on own account refers to the production done by statistical units over a period of time that has been sold (invoiced) in the reporting year. The physical volume and the value of production sold are normally recorded for products listed in the NIP if they are sold to other enterprises on the domestic market, in producer’s own shops or exported to international markets. This also includes self-produced products as well as those hired out or leased to third parties (e.g. computer equipment, telephone installations, washing machines). Besides self-produced products (or services), the production sold also includes finished products the statistical unit produced or processed for a principal on a contract basis as well as services rendered on the territory of the Republic of Croatia. It does not include any finished products used, or to be used, in further processing by local units of the same enterprise or finished products put on stock for sale later.
Production or processing on a contract basis
In the PRODCOM sense, the production or processing on a contract basis exists if a statistical unit produces or processes particular NIP products ordered by a principal who also supplies, free of charge, the material necessary for that production or processing. The production or processing on a contract basis is the production carried out under special arrangements between an ordering unit (principal) and a producing unit. In such a production, only the producer must report the value of production of industrial products achieved according to the contract in that country, that is, in the country where the production actually took place, in order to avoid double presentation of data. In such cases, the producer reports the production under the same code of the NIP product as for the production on own account, whereas, concerning the value of the production sold, only the value of the provision actually paid by the principal for the service of production is presented. In any arrangement for the production or processing on the contract basis, the principal and the producer or processor must belong to different enterprises (business entities), due to the fact that, according to the definitions of the PRODCOM Statistical Standards, it is not possible to carry out the production or processing on a contract basis between local units belonging to the same enterprise.
The value of production sold
It is calculated on the basis of the selling price obtained, or to be obtained, by a producer during the reporting period. The value of production sold also includes packaging costs even if they are charged separately, but it excludes the following costs: any turnover and consumption tax charged (VAT and excises), delivery costs even if they are charged separately or any discounts granted to customers. If finished products are hired out or leased to third parties, the prices obtainable on the market for the products in question are recorded as their estimated value.
Unit value of a product
The unit value of the NIP products or services is a derived indicator, so it represents the average value per product unit, expressed in euros. It is calculated for each NIP product by dividing the value of production sold by quantities sold and, therefore, it does not represent the average price of the products in question.
All users of PRODCOM statistics data should bear in mind that the indicators of apparent domestic consumption can also be derived by using the NIP results. It is calculated by balancing data on produced and sold volumes and values with comparable data on export/import of either the same products/goods or those aggregated to the level of the same PRODCOM List products (originally foreign trade in goods data aggregated to the CN level of the Customs Tariff). The calculation can be obtained by using the following formula: production + imports − exports. Such a calculation is very exhaustive, and it has been done by the Croatian Bureau of Statistics for the 10 most important NIP products according to the criterion regarding the value of production sold and export.
Regional indicators – county level
The review of basic regional indicators of industrial production at the county level can be found in Table 6. The data are broken down only to the sections and divisions of the NKD 2007. The data processed at the county level refer to concepts and definitions previously described for the level of the Republic of Croatia and are fully applicable to the review by counties.
DATA PRESENTED IN TABLES
PART ONE – REVIEW FOR THE REPUBLIC OF CROATIA
The review of detailed data on the total industrial production of the Republic of Croatia is given in Tables 1 – 5. In order to ensure the correct use of the presented data, there are brief Notes on Methodology for the tables by the order of their presentation.
Table 1 Total industrial production, production sold and export – on own account and under contract with a principal
The codes and headings of products in this table are presented according to the NIP. A finished product is any product that reached a certain stage of processing or completion in the industrial production process, so that it is listed under the separate NIP code or heading. This term also covers all aspects of finishing the product, which includes cleaning, packing, quality checking, classification, and the like.
A volume of production includes all produced quantities of a certain product as defined in the NIP, irrespective of whether it is intended for sale or further processing in a reporting unit. Only finished products are reported, that is, according to the definition, any product that reached a certain stage of processing or completion in the industrial production process, so that it is listed under the separate NIP code or heading. This term also covers all aspects of finishing the product, which includes cleaning, packing, quality checking, classification, and the like. Defective products (rejects) are excluded both from the finished and the unfinished production.
The value of production sold and export is an invoiced amount of volume sold, which excludes the values of intermediate consumption (internal realisation) between two or more local units within the same enterprise. The value of production sold and export includes packaging costs even if they are charged separately, and excludes values of turnover and consumption tax charged (VAT and excises), delivery costs even if they are charged separately or any discounts granted to customers. The value of production sold is presented here only for the first units of measure stated in the NIP.
The average value of production sold is a derived indicator. It represents the total value of production sold of individual products as related to the total volumes of the same products sold (a unit value of product) rather than their average price.
The production under a contract with a principal, as defined in this Survey, comprises the production of products defined in the NIP on the basis of a contract with a principal who, at the same time, owns raw materials (production with external raw materials and on somebody else’s account), so that the reporting unit/producer functions only as an enterprise that renders a service of production on account of another enterprise, who is a principal. The principal of a (contracted) production is not a subject of this Survey. The PRODCOM Survey refers to this kind of service production as further processing on the basis of a contract with a principal (according to the EU terminology), while previous PRODCOM surveys referred to it as "service production of industrial products". Only the value of the provision for services rendered on the basis of a contract with a principal is presented, expressed in thousands of euros.
Production on the basis of a contract with a principal does not include the production contracted between two local units that are a part of the same reporting unit/enterprise, and neither does it include general industrial services which are defined by individual kinds of industrial services taken over from the NIP and expressed mainly in physical units of measure, that is, in (thousands of) effective hours.
Table 2 Production and apparent domestic consumption of selected most important PRODCOM products, by value of industrial production sold
Data sources are the results of the annual PRODCOM Survey on Industrial Production. The apparent domestic consumption is calculated by using the following formula: production + imports − exports.
The negative apparent domestic consumption is the result of a difference in the coverage and methodological approach to these two kinds of data.
Table 3 Value of industrial production sold and export – comparative review, according to NKD 2007 sections, divisions, groups and classes, by product activity
This table presents the value of production sold, the number of enterprises and the number of local units.
Data on the sale of products according to the NIP are shown aggregated according to the sections, divisions, groups and classes of the NKD 2007 as well as by product activity, by aggregating the NIP to the levels of the NKD 2007 up to the level of the Republic of Croatia in total.
The number of local units may be the same or larger than the number of enterprises, since one enterprise may have one or more local units depending on whether it carries out a certain industrial activity in one or more counties.
If the number of enterprises or local units is less than 3, it is marked with "z" (protected data) to comply with the principle of protection of individual information.
Tables 4 and 5 Number of enterprises, number of local units and value of industrial products sold, according to NKD 2007 sections and divisions, by product activity (legal entities and tradesmen)
These tables present the value of industrial production sold as well as the number of enterprises and the number of local units. Data on the sale of products according to the NIP are shown aggregated according to the sections and divisions of the NKD 2007 as well as by product activity up to level of the Republic of Croatia in total. From the total value of the production sold, the number of enterprises and the number of local units, Table 4 shows the shares pertaining to legal entities and tradesmen in absolute figures, and Table 5 in percentages.
If the number of enterprises or local units is less than 3, it is marked with "z" (protected data) to comply with the principle of protection of individual information.
PART TWO – REVIEW BY COUNTIES
The Review by Counties contains aggregated data on the sale of industrial products by territorial constitution with the situation as on 31 December 2000 (the Act on Territories of Counties, Towns and Municipalities in the Republic of Croatia, NN, Nos 10/97, 124/97 and 68/98).
Table 6 Value of industrial production sold and export – comparative review, according to NKD 2007 sections and divisions, by product activity, by counties
This table presents the value of the production sold and the number of local units by counties. Data on the sale of products according to the NIP are shown aggregated according to the sections and divisions of the NKD 2007 as well as by product activity, by aggregating the NIP to the NKD 2007 levels.
If the number of enterprises or local units is less than 3, it is marked with "z" (protected data) to comply with the principle of protection of individual information.
1) Commission Regulation (EU) 2017/2119 of 22 November 2017 establishing the "Prodcom list" of industrial products provided for by Council Regulation (EEC) No 3924/91 (OJ L 325 of 8 December 2017).
2) Classification of products by activity of the Republic of Croatia 2015 – KPD 2015 (NN, No. 157/14). The KPD 2015 is identical on all levels to the CPA version 2.1 of the EU.
3) Commission Regulation (EU) No 1209/2014 of 29 October 2014 amending Regulation (EC) No 451/2008 of the European Parliament and of the Council establishing a new statistical classification of products by activity (CPA) and repealing Council Regulation (EEC) No 3696/93 (OJ L 336 of 22 November 2014).
ABBREVIATIONS
A ampere
act. active
alc. alcohol
°C degree Celsius
CD compact disc
ce/el number of cells
cg centigram
CGT compensated gross tonne
CHP combined heat and power
CN Combined Nomenclature
cm centimetre
cm2 square centimetre
conn. connection
CPA Classification of Products by Activity
CT Customs Tariff
dwt deadweight tonnage
eff. effective
EU European Union
Eurostat Statistical Office of the European Communities
g gram
GJ gigajoule
g/m gram/metre
g/m2 gram/square metre
hl hectolitre
kg kilogram
KPD 2015 Classification of Products by Activity of the Republic of Croatia, 2015 version
kV kilovolt
kVA kilovolt-ampere
kW kilowatt
I litre
m meter
m2 square metre
m3 cubic metre
mln million
min minute
mm millimetre
MPa megapascal
MWh megawatt hour
NACE Statistical Classification of Economic Activities in the European Community
n. e. c. not elsewhere classified
NIP Nomenclature of Industrial Products
NKD 2007 National Classification of Activities, 2007 version
NN Narodne novine, official gazette of the Republic of Croatia
n. p. r. s. not put up for retail sale
pa pairs
PET polyethylene terephthalate
PRODCOM PRODucts of the European COMmunity (French: Production Communautaire)
p. r. s. put up for retail sale
p/st number of items (pieces/sticks)
sdt substance dry
subst. substance
t tonne
TEL tetraethyl lead
TJ terajoule
TML tetramethyl lead
V Volt
VAT value added tax
v. q. p. r. d. vin de qualité produit dans une région déterminée (French: wines of quality produced in determined regions)
W Watt
z data are not published for confidentiality reasons
‘000 thousand
SYMBOLS
- no occurrence
* data revised or corrected
< less than
= equal
> more than
... no data available