ATC stands for Anatomical, Therapeutic and Chemical, and the system has 5 levels.
The levels are somewhat heterogenous. The main groups at level 1 do not always equal an anatomical site; e.g. J Infectious diseases. Headings on level 2 may sometimes refer to substances - e.g. J01 antibiotics for systemic use, and level 4 may also carry therapeutic indications. To find a comprehensive view of the use of e.g. corticosteroids, local use is to be found under Skin (D07) and the systemic use under Hormones, excl. sex hormones (H02).
After the generic name of a substance on level 5, ATC enumerates brand names of products, the latter being defined as pharmacological packages which can be dispensed, prescribed and purchased. Products containing one active substance - or several active substances from the same therapeutic group - are considered as plain. Plain products may contain auxiliary substances, aimed to reduce pain, discomfort or adverse effects, or to increase drug stability. Products containing two or more active substances from different therapeutic groups are regarded as combination products.
Example classification:
| Level 1 | Anatomical | N | Central Nervous system |
| Level 2 | Therapeutic | N05 | Neuroleptics |
| Level 3 | Therapeutic subgroup | N05B | Sedatives |
| Level 4 | Chemical | N05BA | Benzodiazepines |
| Level 5 | Chemical subgroup | N05BA01 | Diazepam |
The main groups at Level 1 = A to V, and some selected subgroups at Level 2 = XXX, are as follows: