INPUT OUTPUT PRODUCT CLASSIFICATION (IOPC)

5.69 The IOPC is an industry of origin product classification that has been specifically developed for the compilation and application of Australian Input-Output (I–O) tables. Because the I–O system describes the production and subsequent use of all goods and services, an I–O product classification needs to be defined in terms of characteristic products of industry sectors. The overall principles for the preparation of such an industry of origin product classification include:

• Homogeneity of inputs – each product or product group should consist of items that have similar input structures or technology of production. This principle is generally applied through the definition of each IOPC item in terms of the ANZSIC industry in which it is mainly produced.
• Homogeneity of disposition – each product, or product group, having satisfied the first criterion, should consist of items that have similar patterns of disposition or usage. This principle is applied by reference to the description of source data items and information about the transport, distribution and taxation margins applying to particular products.

5.70 The IOPC used in the annual release of I-O product tables in Australian National Accounts: Input-Output Tables (Product Details) (cat. no. 5215.0.55.001) and is consistent with the 2006 edition of the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (cat. no. 1292.0).

5.71 The IOPC comprises 1,284 individual product items.

5.72 The structure of the IOPC arises from its industry of origin basis where each product item is shown according to the industry in which it is primarily produced. This structure is implemented in the IOPC by the adoption of ANZSIC classes as the basis for defining IOPC items. IOPC items are identified by an 8 digit code with the first 4 digits typically referring to the ANZSIC class to which the item is primary and the last 4 digits referring to the product number. Details of ANZSIC codes and their relationship to the I–O industry groups, as well as other industry and commodity classifications are shown in Table 2 of Australian National Accounts: Input-Output Tables (Product Details) (cat. no. 5215.0.55.001).

5.73 Detailed HS product information (i.e. 8 digit AHECC and 10 digit HTISC) is assigned to IOPCs. This assignment is determined by forming judgements regarding the ANZSIC class(es) to which a HS item is primary.

5.74 An example of the hierarchical structure of the IOPC is shown in Table 5.9 below.

IOPC	IOPC Descriptor
01340010	Apples - fresh and sun-dried