Registry Detail

401

Interpretation

09/10/2000 11:30:00

Due to the immense development of the internet, we need more guidelines as how to classify business activities through the internet. [see also #402] a. How do we resolve the issue of whether businesses in sales, promotion and advertising or conducting auctions through the internet are considered as telecommunication activities (classified in Division 64) or as sales activities (Division 51), promotion and advertising activiities (Division 74), auctioning activities (Division 74), respectively, or is it a computer activity (classified in Division 72).

The treatment of activities involving the Internet has become one of the major problems of interpretation for most classifications. Currently ISIC Rev.3 does not provide separate categories for activities carried out over/using the Internet. Following the existing structure and guidelines of ISIC, most of these activities are not considered new activities, but rather activities using a new and different tool. Businesses should be classified in Telecommunications (6420) only if they provide access to the Internet as their main activity. This would include Internet Service Providers (ISP). In response to your first question we would therefore classify the businesses you mentioned in Divisions 52 (Retail sale) and 74 (Business Services) respectively. The extensive use of computers does not make these activities "computer activities". The second question actually touches upon an area where the use of a new tool (Internet) has significantly changed traditional ways of publishing. Our current interpretation of these activities is to consider them as "Content providers" on the Internet (as opposed to "Access providers"). These content providers are classified in ISIC in class 7240 (Data base activities). The changes that have occurred through the extensive use of the Internet are especially apparent in the area of Publishing, Printing and related activities. We are currently discussing the proper re-definition of activities in this area for future revisions of ISIC. In 2000, we will present an alternate structure taking these changes into account, while leaving the original structure unchanged

Business activities such as sales, auctions etc. on the Internet are classified together with their "traditional" counterparts in ISIC 52 (Retail sale) or 74 (Business activities). Explanatory notes and introduction need to be changed to reflect this. Note: See related items under Registry ID# 347, 384, 402, 719, 780, 938, 942.