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Internal research projects - year 2016

Project No.: 1255

Project title:

Analysis of Czech agrarian foreign trade according to the level of processing (for unprocessed commodities and processed products separately) (Pohlová)

Responsible solver:

Ing. Karina Pohlová

Aim of the project:

Defining of a category of processed products (or more their categories) within chapters of HS 01-24 (with respect to nomenclature limits and available/existing classification and their review, Czech specifics took into consideration). Analysis of Czech agrarian foreign trade using new categories of unprocessed and processed categories.

Summary of the project:

This project had two aims. First, a formation of one or more categories of processed products, and second, an analysis of the Czech agrarian foreign trade depending on degree of commodity processing. First aim was carried out through the breakdown of Customs tariff (including using of Explanatory notes) and of available convertors between nomenclatures (for example Customs nomenclature and Product Classification CPA), together with review and critical assessment of existing classifications and materials. Creation of a classification is influenced by factual assessment of products (e. g. by decisions which operations are processing and which are not yet, and by inconsistency between processing degree and labour-intensity), and nomenclature options (e. g. problems with items which include both unprocessed and processed goods, and items titled “others”). It is not possible to avoid a simplification, and the result is a compromise, as no ideal and universal classification exists. The relevant factors are ease of future use (data processing, updating of code lists), as well possibility of international comparisons. Various accessible classifications differ among each other in several aspects (number of categories, used nomenclature and its detail, and different categorization of some items), which is caused by the fact that they serve various purpose, and have been created from various points of views. Within this project three categories have been formed – unprocessed commodities, less processed products, and highly processed products. Dividing line between unprocessed and processed products follow a principle if the product is an output of a food (or other) industry. Distinguishing between less and highly processed products depends on the number of processing degrees, and further, if the products is made from one or more ingredients, and if some of these ingredients is or is not a processed product. The new categorisation has used also 8 digit codes of CN, i. e. the most detailed level of customs nomenclature. The second aim of the project was an analysis of the Czech agrarian foreign trade for newly created categories of unprocessed and processed products.

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