SITC: Standard International Trade Classification

What are the benefits of using the Standard International Trade Classification?

One of the major benefits of using the Standard International Trade Classification (SITC) system for classifying goods and services traded internationally is its user-friendly design. With its clear categorization structure, practitioners are easily able to distinguish between specific categories such as agricultural products, raw materials, machinery, and manufactures. For example, agricultural products are divided into those subject to production and those that result from processing or manufacturing.

Furthermore, this system helps foster economic prosperity by providing practitioners with a way to compare goods and services across countries in terms of value or quantities, allowing us to better understand global trade trends.

The SITC also allows us to conduct research into how different industries have evolved over time or how certain countries specialize in certain products or market segments. This information can be used by businesses to identify valuable global trading opportunities. All in all, the robustness of the SITC system makes it an invaluable tool for identifying international trade patterns and making sound investment decisions.

Key Takeaways

• • What does SITC stand for in logistics? The Standard International Trade Classification (SITC) is an economic classification system for global merchandise trade that was developed by the United Nations statistical office.

How is the Standard International Trade Classification organized?

The Standard International Trade Classification (SITC) system includes ten categories of internationally traded goods, such as food, beverages, raw materials, manufactured items, machinery and transport equipment.

Each category is further divided into two-digit subcategories and four-digit commodities. For example, the Raw Materials category has 20 subcategories ranging from 01 Animal and Vegetable Oils, Fats and Waxes to 20 Unclassified Goods Principally Used as Raw Materials.

The four-digit commodities provide a more granular description of the goods within each subcategory. As an example under the 01 Animal and Vegetable Oils group there are commodities such as 1101 Coconut Oil or 1104 Olive Oil. This detailed classification system allows for easier tracking of goods throughout the entire supply chain process.