CLASSIFICATION BY BROAD ECONOMIC CATEGORIES (BEC)

5.49 The BEC classification was introduced by the UN in the early 1970s. It is a 3 digit classification that groups commodities according to their main end-use, that is, consumption goods, capital goods and intermediate goods. The BEC was designed as a means for converting data compiled in terms of SITC into these end-use categories.

5.50 The BEC categories are aligned as far as practicable with the System of National Accounts (SNA) framework. The BEC classification is suitable for the general economic analysis of international merchandise trade statistics and facilitates the use of this data in conjunction with other national and international economic statistics.

5.51 The BEC classification groups goods into 19 categories. Of these, 16 basic categories make up the three broad end-use categories:

• consumption goods
• capital goods
• intermediate goods.

5.52 A fourth category (other goods) includes the three remaining basic categories: 321 (motor spirit), 51 (passenger motor cars) and 7 (goods not elsewhere specified). These three basic categories cannot be assigned to a single broad end-use category, i.e. motor spirit and passenger motor cars are used by both industry (as intermediate consumption and capital goods respectively) and households (as consumption goods), and goods not elsewhere specified can be a mix of all three end-use categories. For presentation purposes, the ABS has combined the other goods category with the intermediate goods category.

5.53 There is a link available between the BEC 3 digit level and the HS codes at the most detailed level, i.e. 8 digit AHECC and 10 digit HTISC. Correspondences are also available for the BEC 3 digit level to the SITC 5 digit level. When SITC Rev. 4 was released the UN provided a new correspondence between the 6 digit level of the HS and BEC. A correspondence between SITC Rev. 4 and BEC is planned by the UN. Further information on BEC can be found in the information papers: Changes to International Trade Statistics July 2008, 2007 to 2008 (cat. no. 5368.0.55.009) and Impact of Introducing Revision 4 of the Standard International Trade Classification, 2008 (cat. no. 5368.0.55.010).

5.54 An example of the hierarchical structure of the BEC classification is included in Table 5.6 below.

Level	Code	Description	SNA Goods Description
Category	1	Food and beverages
Sub category	11	Primary
Basic category	111	Mainly for industry	Intermediate goods
Basic category	112	Mainly for household consumption	Consumption goods

BALANCE OF PAYMENTS BROAD ECONOMIC CATEGORIES (BoPBEC)

5.55 The BoPBEC is a classification used by the ABS to disseminate imports and import clearances data since 1994. It is based on the three end-use categories of the BEC classification (consumption goods, capital goods and intermediate goods) and provides more detail than the BEC classification. There are some minor variations which affect motor spirit, passenger motor cars, military equipment, video recording or reproducing apparatus, and certain types of imports which are not classified according to kind. The three end-use categories are further split based on SITC into 26 merchandise imports commodity groups.

5.56 By corresponding SITC categories to particular BEC categories, the classification attempts to classify international merchandise trade statistics for general economic analysis according to the main end-use of the commodities. However, it does not achieve complete alignment with the particular end-use. For example, passenger motor cars are classified as consumption goods in BoPBEC, even though some are acquired by businesses. If they were identifiable they could be classified to capital goods, as they are in fact acquired as capital equipment.

5.57 The 26 merchandise imports commodity groups have been designed so that they result in meaningful groupings which have sufficient value to warrant separate identification, provide an appropriate spread across all end-use categories without any unduly large residual components, and provide detail for major import commodities. The 26 merchandise imports commodity groups are further sub-divided into 107 commodity sub-groups for more detailed analysis.

5.58 Merchandise imports on a BoPBEC basis are published in International Trade in Goods and Services, Australia (cat. no. 5368.0). Table 34 contains data at the detailed commodity sub-group level, as a monthly time series commencing from July 1989.

5.59 An example of the hierarchical structure of the BoPBEC classification is included below:

Level	Code	Description
Category	C	Consumption Goods
Commodity group	CA	Food and beverages, mainly for consumption
Commodity sub-group	CA04	Fruit & fruit preparations