How do notes handle a division heading?

A division note handles a division heading by stating the scope of the field inside the section, defining the basic activities in the division, stating inclusions and exclusions for the division as a whole, and, where needed, stating an implementation rule for a difficult case that arises across the division. A division note must be read before the group and class notes inside it, because it states the frame inside which those notes divide the field.

What does the note for Division 01 state?

The note for Division 01, for crop and animal production, hunting and related service activities, states, as Eurostat publishes it, that the division includes two basic activities, namely the production of crop products and the production of animal products. The note adds that mixed farming, in group 01.5, breaks with the usual principles for identifying the main activity, because it accepts that many agricultural units have a reasonably balanced production of crops and animals, and that it would be arbitrary to classify them in one category or the other. The note adds that the division includes the soilless cultivation of crops, such as using hydroponic and aquaponic methods, and that it also includes service activities incidental to agriculture, as well as hunting, trapping and related activities.

The note then states exclusions for the division as a whole. Agricultural activities exclude any subsequent processing of agricultural products, classified under divisions 10, 11 and 12, beyond that needed to prepare them for the primary markets, while preparation for the primary markets is included. The division excludes field construction, such as agricultural land terracing, drainage, and preparing rice paddies, classified in Section F, and buyers and cooperative associations engaged in the marketing of farm products, classified in Section G. Landscape service activities are also excluded, classified in class 81.30. The description, the mixed farming statement, the additional inclusions, and the exclusions together define the division field, before the groups inside it are read.

Element in the note for Division 01	What Eurostat states
Basic activities	Production of crop products, and production of animal products
Mixed farming	Group 01.5 breaks with usual main activity principles, for balanced crop and animal production
Also included	Soilless cultivation, including hydroponic and aquaponic methods; service activities incidental to agriculture; hunting and trapping
Excluded	Subsequent processing, in divisions 10 to 12, beyond preparation for primary markets; field construction, in Section F; marketing associations, in Section G; landscape services, in class 81.30

What is the implementation rule in the Division 01 note?

Eurostat states the rule with grapes and wine, and olives and oil, as examples: hours worked is the most suitable proxy variable, generally leading to classification under agriculture, and other agricultural products are classified in agriculture by convention, to guarantee harmonised treatment. The rule illustrates how a division note differs from a class note. A class note states what a class includes and excludes. A division note can state, in addition, how a recurring difficulty in applying the classification inside the division is to be handled, using a proxy variable and a convention, to ensure harmonised treatment across countries. The rule does not decide the class for a particular unit, because the proxy variable must be applied to the information held about the unit, and the convention must be applied as stated. The rule states the method for the division. The application to a unit is made by the institute or register that holds the record, using the information held about that unit.

How does a division note relate to the notes below it?

A division note relates to the notes below it as a frame that the group and class notes divide. The group notes inside Division 01 define the groups, such as group 01.1 for growing of non perennial crops, with a definition of the term non perennial, and group 01.2 for growing of perennial crops, with a definition of the term perennial. The class notes inside each group then list the detailed inclusions and exclusions for each crop type. A reader who reads a class note without the division note will miss the division level exclusions, such as the exclusion of subsequent processing, and the division level inclusions, such as soilless cultivation and incidental services. A reader who reads the division note without the class notes will know the field, but will not know how the field is divided, or which class covers a particular crop.

The division note also contains the statement that breaks with the usual principles, for mixed farming, which must be read before the group note for mixed farming is read. Group 01.5 for mixed farming is an exception to the usual main activity identification, as stated in the division note, and the group note must be read as an exception, not as a general rule for all divisions. A reader who applies the mixed farming exception to another division, without a similar statement in that division note, would misapply the exception. Division notes state exceptions for their own division, and the exception must not be generalised beyond the division where it is stated.

What does a division note not decide?

A division note does not decide the class for an activity, and it does not decide an entry for a business. It states the field, the basic activities, the division level inclusions and exclusions, and any implementation rule for the division. The class is found by reading the group and class notes inside the division, in order, and the entry is confirmed by the institute or register that holds the record. A reader who cites a division note as if it settled a class has cited a frame as if it were a definition, and has skipped the narrower notes that divide the frame. The division note is a necessary step in reading a category, between the section note and the class note, and it must be read in that sequence.

Read the division note for the field and any implementation rule, read the group and class notes inside it for the detail, and confirm any entry with the national statistical institute or the business register that holds the record.