How do explanatory notes show borderline cases?

Explanatory notes show borderline cases by stating, in the note for a category, examples of activities that may appear similar to those belonging to the category but are classified elsewhere, with a cross reference to the class where they belong. A borderline case is therefore not left to inference from a heading. It is named in the note, excluded from the category where it might be expected, and pointed to the category where it is classified. The pair of notes, read together, defines the boundary.

What makes an activity borderline?

An activity is borderline when it shares words, materials, inputs, or outputs with activities in two categories, so that a heading comparison alone could place it in either. The manual states that categories are defined by criteria including inputs, process and technique, characteristics of outputs, and use, and that the weight of each criterion varies between categories. An activity that shares an input with one category and an output with another, or that shares a process with one category and a use with another, will look as if it belongs in both. The notes resolve the appearance by stating the boundary: the activity is included in one note, and excluded, with a cross reference, in the other note. The boundary is a decision recorded in the notes, not a fact that can be derived from the heading words alone.

Verified examples from the agriculture notes show the pattern. Rice shares the cereal character with the activities in class 01.11, but it is excluded there and classified in class 01.12. Sweetcorn shares the cereal character with class 01.11, but it is excluded there and included in class 01.13. Mushroom spawn shares the mushroom character with class 01.13, but it is excluded there and classified in class 01.30. Tobacco leaf preparation by a third party shares the tobacco character with class 01.15, but it is excluded there when done by a third party, and classified in class 01.63, while the same processing associated with growing is included in class 01.15. Each example names the similar activity, states the exclusion, and gives the cross reference. The borderline is shown, not left to guesswork.

Borderline activity in the agriculture notes	Excluded from, with cross reference	Included in, as stated in the note
Growing of rice	01.11	01.12
Growing of sweetcorn	01.11	01.13, in the includes also list
Growing of mushroom spawn	01.13	01.30
Tobacco leaf preparation by a third party	01.15	01.63

How is a borderline case read?

A borderline case is read by following the cross reference chain, and by reading both notes in full. The starting note states the exclusion and the cross reference. The pointed to note states the inclusion, in its description, its includes list, or its includes also list, and it may state a further exclusion that points onward. The chain must be followed until the note that includes the activity is found, and the inclusion must be confirmed in that note. A reader who stops at the exclusion will know where the activity is not classified, but will not have confirmed where it is classified. A reader who jumps to the pointed to class without reading its note will assume the inclusion, without confirming the conditions stated in the note, such as association with growing, or a distinction by purpose.

The parent notes must also be read where the borderline crosses a group, division, or section boundary. A borderline between classes in the same group is shown by the class notes. A borderline between groups is shown by the group notes as well as the class notes, because the group note states the field inside which the classes sit. A borderline between divisions or sections is shown by the division and section notes, which state the broad scope and the main boundaries. The manual states that notes define the scope of each position, at every level, and the hierarchy of notes must be read from the top down where the boundary is unclear, so that a class level boundary is not read outside its parent scope.

What is the difference between a borderline case and a residual case?

The distinction matters for the reading sequence. For a borderline case, the sequence is exclusion, cross reference, inclusion in the pointed to note. For a residual case, the sequence is specific notes first, residual note second, with the parent note stating the scope that the residual completes. Both sequences end with the note that includes the activity, and both require the excludes list to be read. The difference is whether the inclusion is in a named category, pointed to by a cross reference, or in a residual category, reached by elimination after the specific categories have been read.

What does a borderline example not decide?

A borderline example does not decide the code for a specific activity beyond the example stated, and it does not decide an entry for a unit. It shows how the boundary is drawn for the activity named in the example, with the conditions stated in the note, such as association, purpose, or material. An activity that is similar to the example, but differs in a condition stated in the note, may fall on the other side of the boundary, and the note for the neighbouring class must be read to check the condition. The assignment of a unit, which may carry out several activities including borderline activities, is made by applying the classification rules to the information held about the unit, and it is made by the institute or register that holds the record. A borderline example is a definition aid. It is not an assignment.

Read the exclusion, follow the cross reference, read the pointed to note in full, and confirm any entry with the national statistical institute or the business register that holds the record.