96-13039. Economic Classification Policy Committee: Standard Industrial Classification ReplacementThe North American Industry Classification System Proposed Industry Classification Structure

[Federal Register Volume 61, Number 103 (Tuesday, May 28, 1996)]
[Notices]
[Pages 26558-26668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13039]

[[Page 26557]]

_______________________________________________________________________

Part II

Office of Management and Budget

_______________________________________________________________________

Economic Classification Policy Committee: Standard Industrial
Classification Replacement--The North American Industry Classification
System Proposed Industry Classification Structure; Notice

Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 /
Notices

[[Page 26558]]

OFFICE OF MANAGEMENT AND BUDGET

Economic Classification Policy Committee: Standard Industrial
Classification Replacement--The North American Industry Classification
System Proposed Industry Classification Structure

AGENCY: Office of Management and Budget, Executive Office of the
President.

ACTION: Notice of solicitation of comments for North American Industry
Classification System industries.

-----------------------------------------------------------------------

SUMMARY: Under Title 44 U.S.C. 3504, the Office of Management and
Budget (OMB) is seeking public comment on a series of notices
documenting the development of the new North American Industry
Classification System (NAICS), the industry classification system being
proposed to replace the current Standard Industrial Classification
(SIC) system. All Federal agencies that collect establishment-based
data are expected to utilize the new system.
This notice, the fifth related to preparation of NAICS and the
third in a series seeking comment on proposed industry structures,
presents the proposed industry structure for the NAICS subsectors
listed in the Supplementary Information section below. This notice also
presents alternatives for the NAICS coding system.
OMB is seeking comments on the usefulness and advisability of the
proposed new NAICS subsectors submitted by the Economic Classification
Policy Committee (ECPC), an interagency committee established by OMB,
and on the NAICS coding system.
The next Federal Register notice will present the entire structure
of NAICS and seek comment on that structure and other industry sectors
and subsector proposals. NAICS is being developed in cooperation with
Statistics Canada and Mexico's Instituto Nacional de Estadistica,
Geografia e Informatica (INEGI). The new NAICS system provides common
industry definitions for Canada, Mexico, and the United States to
facilitate economic analyses that cover the economies of the three
North American countries. The three country collaboration on an
industry classification system for North America was announced for
public comment in the Federal Register, July 26, 1994, pp. 38092-38096.
The July 26, 1994 Federal Register notice includes the concepts
for the new system, as developed by Statistics Canada, Mexico's INEGI,
and the ECPC. It also includes a copy of the joint statement of the
three countries' statistical agencies regarding the development of
NAICS. That agreement includes the following principles:
(1) NAICS will be erected on a production-oriented, or supply-
based, conceptual framework. This means that producing units that use
identical or similar production processes will be grouped together in
NAICS.
(2) The system will give special attention to developing
production-oriented classifications for (a) new and emerging
industries, (b) service industries in general, and (c) industries
engaged in the production of advanced technologies.
(3) Time series continuity will be maintained to the extent
possible. However, changes in the economy and proposals from data users
must be considered. In addition, adjustments will be required for
sectors where the United States, Canada, and Mexico presently have
incompatible industry classification definitions in order to produce a
common industry system for all three North American countries.
(4) The system will strive for compatibility with the 2-digit level
of the International Standard Industrial Classification of All Economic
Activities (ISIC, Rev. 3) of the United Nations.
ECPC Report No. 3, Summary of Public Responses to the Proposed New
North American Industry Classification System, provides a summary of
public comments received in response to the July 26, 1994, Federal
Register notice.
A notice was published in the Federal Register, July 26, 1995, pp.
38436-38452, requesting comment on proposed industry structures for
petroleum and coal product manufacturing, chemical manufacturing, and
rubber and plastic manufacturing; for broadcasting and
telecommunications; and for food services and drinking places and
accommodations. A Federal Register notice was published on February 6,
1996, pp. 4524-4578, requesting comment on proposed industry structures
for crop production, animal production, forestry and logging, fishing,
hunting, and trapping, and support activities for agriculture and
forestry; textile mills, textile product mills, apparel manufacturing,
and leather and allied product manufacturing; food manufacturing and
beverage and tobacco product manufacturing; fabricated metal product
manufacturing; machinery manufacturing; electrical equipment,
appliance, and component manufacturing; and transportation equipment
manufacturing.

DATES: To ensure consideration and response to all comments on the
proposals set forth in this notice, comments must be in writing and
should be submitted as soon as possible, but no later than July 29,
1996. This proposed industry system would become effective in the U.S.
on January 1, 1997.

ADDRESSES: Correspondence about the industry proposals of the NAICS
structure announced in this Federal Register notice should be sent to:
Carole A. Ambler, Coordinator, Economic Classification Policy
Committee, Bureau of the Census, U.S. Department of Commerce, Room
2633-3, Washington, DC 20233, telephone number: (301) 457-2668, FAX
number: (301) 457-1343.
Correspondence about the NAICS numbering system should be sent to:
Jack E. Triplett, Chairman, Economic Classification Policy Committee,
Bureau of Economic Analysis (BE-42), U.S. Department of Commerce,
Washington, DC 20230, telephone number: (202) 606-9615, FAX number:
(202) 606-5311. Copies of all ECPC issues papers, previous Federal
Register notices, and ECPC reports are available from the same address.

ELECTRONIC AVAILABILITY AND COMMENTS: This document is available on the
Internet from the Census Bureau via WWW browser, ftp, and E-mail.
To obtain this document via WWW browser, connect to ``http://
www.census.gov'' then select ``Economy,'' then select ``Economy-Wide
Programs,'' then select ``NAICS Documents.''
To obtain this document via ftp, log in to ftp.census.gov as
anonymous, and retrieve the file ``prop01.txt'' from the ``/pub/epcd/
naics'' directory. (That directory also contains previous NAICS Federal
Register Notices and related documents.)
To obtain this document via Internet E-mail, send a message to
majordomo@census.gov with the body text as follows: ``get gatekeeper
prop01.txt''. The document will be delivered as a message attachment.
Comments may be sent via Internet E-mail to the Census Bureau at
naics@census.gov (do not include any capital letters in the address).
Comments received at this address by the dates specified above will be
included as part of the official record.

FOR FURTHER INFORMATION CONTACT: Carole A. Ambler, Coordinator,
Economic Classification Policy Committee, Bureau of the Census, U.S.
Department of Commerce, Room 2633-3, Washington, DC 20233, telephone

[[Page 26559]]

number: (301) 457-2668, FAX number: (301) 457-1343.

SUPPLEMENTARY INFORMATION:

Structure of Notice

There are 20 parts to this notice. Part I includes the proposals
for health and social assistance; Part II includes educational
services; Part III includes computer and electronic product
manufacturing; Part IV includes furniture manufacturing; Part V
includes printing and related support activities; Part VI includes
professional, scientific, and technical services; Part VII includes
performing arts, spectator sports and related industries, museums,
historical sites and similar institutions, and recreation, amusement,
and gambling; Part VIII includes information; Part IX includes wood
product manufacturing, except furniture; Part X includes rental and
leasing; Part XI includes repair and maintenance; Part XII includes
management and support; Part XIII includes transportation; Part XIV
includes retail and wholesale trade; Part XV includes mining; Part XVI
includes paper manufacturing; Part XVII includes nonmetallic mineral
manufacturing; Part XVIII includes primary metal manufacturing; Part
XIX includes miscellaneous manufacturing; and Part XX includes postal
service and couriers.
Each of the 20 parts of the notice is organized into two sections.
The first section includes a copy of the proposed agreement signed by
the ECPC, Statistics Canada, and INEGI; the structure of NAICS; and an
explanation of the structure. For a number of reasons, NAICS industries
do not always provide as much industry detail as has been present in
the U.S. SIC. Each country may add additional detailed industries,
below the industry level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a NAICS industry in
order to ensure full comparability among the three countries. The
proposed United States NAICS system would include U.S. national
industries. These represent important industries in the U.S. that
cannot be recognized in the statistical systems of either Canada or
Mexico because of size restrictions, confidentiality or other reasons.
The second section of each part includes the U.S. detailed industries
within NAICS and two comparison tables showing the differences between
the 1987 SIC and the 1997 NAICS with United States detail.
The NAICS numbering system is still under development; therefore
the hierarchical structure is displayed in this document with X's
representing the following:

X Industry Sector
XX Industry Subsector
XXX Industry Group
XXXX Industry
XXXXX U.S. National Industry

The terms ``Industry Sector'' and ``Industry Subsector'' are
changes from the terms ``Division'' and ``Major Group'' used in the
1987 SIC manual.

NAICS Coding System: Issue for Comment

The ECPC is requesting public comment on two alternatives for a
NAICS coding system--a 5-character alphanumeric system and a 6-
character, all numeric system. In the initial stages of its review, the
ECPC was informed that the computer systems of some U.S. statistical
agencies could not accommodate six characters, which ruled out
consideration of a 6-character system. Further investigation has
indicated, however, that 6-character fields are possible and may offer
certain advantages.

Background

NAICS is organized in a hierarchical structure, much like the
existing U.S. SIC. The 1987 SIC employed a 4-digit coding system, in
which the first two digits designate what in NAICS is known as a
``subsector,'' the third digit designates the industry group, and the
fourth digit designates the industry. For example, in the 1987 SIC, the
two digits 26 designate the manufacture of ``Paper and Allied
Products,'' within which the digits 262 designate an industry group
titled ``Paper Mills,'' which contains one 4-digit industry, SIC 2621,
also titled ``Paper Mills.''
The NAICS coding system must be expanded beyond the four digits
used in the SIC for two reasons. First, the NAICS agreements among the
ECPC, INEGI, and Statistics Canada permit each country to designate
detailed industries, below the level of a NAICS industry, to meet
national needs. The United States will have such national industry
detail in many places in the new classification, and this national
detail can only be accommodated by expanding the coding system to at
least five characters. This national industry detail has been shown
schematically in previous Federal Register notices.
Second, it is desirable that the first character or characters in a
coding system designate the sector (the term ``industry sector'' is
replacing the term ``division'' used in the 1987 SIC). A modern economy
is too complex to be described adequately if the first character of the
coding system restricts the number of sectors to nine or ten. The ECPC,
INEGI, and Statistics Canada are proposing that NAICS have 18 industry
sectors. Accordingly, either the first character of the coding system
must be a letter, rather than a number, or two digits must be used to
designate the sector in NAICS.
The foregoing considerations lead to two options for the coding
system in NAICS:
(1) A 5-character, alphanumeric coding system, in which the first
character (a letter) designates the NAICS sector, and the second,
third, fourth, and fifth numerical characters designate, respectively,
the subsector, industry group, NAICS industry, and U.S. national
industry (if any).
(2) A 6-character, all numeric coding system, in which the first
two digits designate the NAICS sector, and the third, fourth, fifth,
and sixth digits designate, respectively, the subsector, industry
group, NAICS industry, and U.S. national industry (if any).
To illustrate the differences between the two coding systems, the
following table shows a portion of the proposed NAICS structure, with
U.S. national detail, for two manufacturing subsectors, and for one
non-manufacturing subsector. In the example, hypothetical 5-character
and 6-character coding systems are displayed for illustration (the
actual positions of these subsectors in the classification system, and
hence the actual codes to be assigned to them, will be determined
later).

Illustrative Portion of the NAICS Structure, Showing Hypothetical
Alternative Coding Systems
------------------------------------------------------------------------
6-character
5-character all numeric
alphanumeric system system
------------------------------------------------------------------------
Manufacturing..................... E, F, G 21, 22, 23
Food Manufacturing.............. E1 211
Animal Food Manufacturing..... E11 2111

[[Page 26560]]

Animal Food Manufacturing... E111 21111
Dog and Cat Food E1111 211111
Manufacturing.
Other Animal Food E1112 211112
Manufacturing.
Grain and Oilseed Milling..... E12 2112
Flour Milling and Malt E121 21121
Manufacturing.
Flour Milling............. E1211 211211
Rice Milling.............. E1212 211212
Malt Manufacturing........ E1213 211213
Starch and Vegetable Fats E122 21122
and Oils Manufacturing.
Soybean Processing........ E1221 211221
Wet Corn Milling.......... E1222 211222
Other Oilseed Processing.. E1223 211223
Edible Fats and Oils E1224 211224
Manufacturing.
Breakfast Cereal E123 21123
Manufacturing.
Sugar and Confectionery E13 2113
Product Manufacturing.
(Classification ... ...
continues).
Textile Mills................... E2 212
Fibre, Yarn, and Thread Mills. E21 2121
Fiber, Yarn, and Thread E211 21211
Mills.
Yarn Spinning Mills....... E2111 212111
Yarn Texturing, Throwing, E2112 212112
and Twisting Mills.
Thread Mills.............. E2113 212113
Fabric Mills.................. E22 2122
Broadwoven Fabric Mills..... E221 21221
Narrow Fabric Mills and E222 21222
Schiffli Machine
Embroideries.
Narrow Fabric Mills....... E2221 212221
Schiffli Machine E2222 212222
Embroideries.
Nonwoven Fabric Mills....... E223 21223
Knit Fabric Mills........... E224 21224
Weft Knit Fabric Mills.... E2241 212241
Other Knit Fabric and Lace E2242 212242
Mills.
(Classification continues) ... ...
Computer and Electronic Product F1 221
Manufacturing.
Computer and Peripheral F11 2211
Equipment Manufacturing.
Computer and Peripheral F111 22111
Equipment Manufacturing.
Electronic Computer F1111 221111
Manufacturing.
Computer Storage Device F1112 221112
Manufacturing.
Computer Terminal F1113 221113
Manufacturing.
Other Computer Peripheral F1114 221114
Equipment Manufacturing.
Communication Equipment F12 2212
Manufacturing.
Telephone Apparatus F121 22121
Manufacturing.
Broadcast and Studio
Equipment for Radio, TV,
and.
Cable Manufacturing......... F122 22122
Other Communication F123 22123
Equipment Manufacturing.
Audio and Video Equipment F13 2213
Manufacturing.
(Classification continues) ... ...
Information....................... J 71
Publishing...................... J1 711
Newspaper, Periodical, Book J11 7111
and Database Publishing.
Newspaper Publishing........ J111 71111
Periodical Publishing....... J112 71112
Book Publishing............. J113 71113
Database Publishing......... J114 71114
Other Publishing............ J115 71115
Greeting Card Publishing.. J1151 711151
All Other Publishing...... J1152 711152
(Classification ... ...
continues).
------------------------------------------------------------------------

Advantages and Disadvantages of the Two Options

6-Character All Numeric System

Advantages
An all numeric code can be key-punched more efficiently,
i.e., more quickly and accurately. First, a 6-character all numeric
code can be keyed faster than a 5-character alphanumeric one. Second,
an all numeric code can more readily be verified by the computer system
with a check-digit. Third, an all numeric code is less subject to
misinterpretation since numerals are more distinct than certain letters
(e.g., E & F, M & N, or U & V) even if letters such as I, O, and S are
omitted because of their similarity to certain numerals. These
productivity advantages reduce the cost of key-punching, compared with
a 5-character alphanumeric system. This is the

[[Page 26561]]

primary advantage of a 6-character, all numeric system to Government
agencies.
Using an all numeric system allows more flexibility for
future expansion of NAICS industry sectors. Under a 5-character
alphanumeric system, NAICS would use 22 letters of the alphabet (18
NAICS industry sectors, plus four extra letters for industry sectors,
such as Manufacturing, that contain more than ten subsectors).
Eliminating the three or four letters that are similar to numerals
leaves essentially no room for expansion of the number of NAICS
industry sectors under the 5-character alphanumeric proposal, whereas
the 6-character all numeric system would permit future expansion of
NAICS industry sectors.
Most other industry classification systems used throughout
the world are all numeric, though most of them are 4- or 5-digit
systems.
Disadvantages
Some of the numerical codes used in the 1987 SIC would be
reused for NAICS, but they would describe different levels of
aggregation of different industries compared to their use in the 1987
SIC. Even though at any given number of digits, the codes will
designate different levels in the two classification systems, reusing
codes could lead to some initial confusion about the meaning of a given
code. For example, using the hypothetical codes shown above, NAICS code
2111 could represent the industry group for Animal Food Manufacturing,
which contains one NAICS industry and two U.S. national industries,
while the 1987 SIC code 2111 represents the 4-digit industry for the
manufacture of cigarettes.
Because expanding a field can be expensive for existing
database systems, some users may prefer a 5-character field to one that
requires 6-characters, especially since, of the 99 available initial
two-digits in a 6-character system, NAICS will only use 22 of them (18
NAICS sectors, plus four extra initial digit pairs for industry
sectors, such as Manufacturing, that contain more than ten subsectors).

5-Character Alphanumeric System

Advantages
Only 5-character fields must be carried in government and
nongovernment data bases thereby potentially lessening database-related
transition costs to the new system. However, since the field would need
to be changed from a numeric to an alphanumeric one, the extent of
potential savings is not clear.
A 5-character system beginning with a letter provides for
unique codes as compared to the 1987 SIC. This will help minimize
initial confusion between the new and old systems.
Disadvantages
A 5-character alphanumeric system is expected to impose
substantially higher data entry costs on the U.S. statistical agencies
responsible for industry coding. Key-punching of 5-character
alphanumeric industry codes takes longer and is less accurate than a 6-
character all numeric system for the reasons discussed above under
advantages of the 6-character system.
Using a 5-character alphanumeric system permits
essentially no flexibility for future expansion of NAICS industry
sectors. Under a 5-character alphanumeric system, NAICS would use 22
letters of the alphabet (18 NAICS industry sectors, plus four more
letters for industry sectors, such as Manufacturing, that contain more
than ten subsectors). Eliminating the three or four letters that are
similar to numerals leaves essentially no room for expansion of the
number of NAICS industry sectors under the 5-character alphanumeric
proposal, whereas the 6-character all numeric system would permit
future expansion of NAICS industry sectors.

Disadvantages of Both Systems

With either coding system, multiple initial characters
must be used for large sectors, such as manufacturing, transportation,
and wholesale and retail trade. Manufacturing, for example, has 21
subsectors in NAICS, so that the 5-character alphanumeric system will
require three letters to designate manufacturing and the 6-character
all numeric system will require three sets of 2-digit codes. This is an
inconvenience in working with the system because tabulating
manufacturing will require entering three letters or three 2-digit
codes, rather than just one. However, this characteristic is also
present in the 1987 SIC system (where initial digits 2 and 3 designate
manufacturing).
In public comments to the ECPC, some users have requested
a more ``user friendly'' coding system than the present 4-digit SIC.
Neither of the two systems is an improvement in this respect.

ECPC Proposal: Request for Comment

The ECPC is proposing the adoption of the 6-character, all numeric
coding system for NAICS. The principal reasons for this proposal are
the additional key-punching costs to Government agencies if an
alphanumeric system were to be adopted as well as the flexibility for
future expansion that a 6-character system permits. Other advantages
and disadvantages of one coding system over the other seem less
compelling because they are more or less offsetting. Of the other
countries that are partners in NAICS, Statistics Canada has indicated a
strong preference for an all numeric system, and INEGI (which now uses
a 6-character numeric system for its industry classification system)
has indicated that either system would be acceptable. The ECPC requests
comments on its proposal to adopt the 6-digit coding system.

Time Series Summary

The standard approach to preserving time series continuity after
classification revisions is to create linkages where the series break.
This is accomplished by producing the data series using both the old
and new classifications for a given period of transition. With the dual
classifications of data, the full impact of the revision can be
assessed. Data producers then may measure the reallocation of the data
at aggregate industry levels and develop a concordance between the new
and old series for that given point in time. The concordance creates a
crosswalk between the old and new classification systems. This link
between the 1987 U.S. SIC and NAICS (with U.S. national detail) will be
developed by the statistical agencies in the U.S.

Outreach Activities

OMB and the Economic Classification Policy Committee (ECPC) are
seeking comments on the proposed NAICS structure for the industries
described in this notice. In carrying out its mandate to ensure maximum
public participation in the process of constructing NAICS, the ECPC has
already discussed many of these industry proposals with industry and
user groups and will continue to do so. In addition, the ECPC is
replying, on a flow basis as soon as the work is completed for industry
subsectors, to respondents to previous Federal Register notices. Thus,
this Federal Register notice supplements other ECPC public outreach
activities in the development of NAICS.

Part I--Proposed New Industry Structure for Ambulatory Health Care
Services, Hospitals, Nursing and Residential Care Facilities, and
Social Assistance

Section A--NAICS Structure

North American Industry Classification System

[[Page 26562]]

(NAICS)
Agreement Number 11

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following industries:

Ambulatory Health Care Services
Hospitals
Nursing and Residential Care Facilities
Social Assistance

The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on September 27, 1995--September 29, 1995 in
Mexico City, Mexico.

------------------------------------------------------------------------
Accepted Signature Date
------------------------------------------------------------------------
Canada.............................. /S/ Jacob Ryten........ 9/29/95
Mexico.............................. /S/ Enrique Ordaz...... 9/29/95
United States....................... /S/ Jack E. Triplett... 9/29/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX Ambulatory Health Care Services
XXX Offices of Physicians
XXXX Offices of Physicians
XXX Offices of Dentists
XXXX Offices of Dentists
XXX Offices of Other Health Practitioners
XXXX Offices of Chiropractors
XXXX Offices of Optometrists
XXXX Offices of Mental Health Practitioners, except Physicians
XXXX Offices of Physical, Occupational, and Speech Therapists and
Audiologists
XXXX Offices of All Other Health Practitioners
XXX Outpatient Care Facilities
XXXX Family Planning Centers
XXXX Outpatient Mental Health Facilities
XXXX Other Outpatient Care Facilities
XXX Medical and Diagnostic Laboratories
XXXX Medical and Diagnostic Laboratories
XXX Home Health Care Services
XXXX Home Health Care Services
XXX Miscellaneous Ambulatory Health Care Services
XXXX Ambulance Services
XXXX Other Miscellaneous Ambulatory Health Care Services
XX Hospitals
XXX General Medical and Surgical Hospitals
XXXX General Medical and Surgical Hospitals
XXX Psychiatric and Substance Abuse Hospitals
XXXX Psychiatric and Substance Abuse Hospitals
XXX Specialty Hospitals, Except Psychiatric and Substance Abuse
Hospitals
XXXX Specialty Hospitals, Except Psychiatric and Substance Abuse
Hospitals
XX Nursing and Residential Care Facilities
XXX Nursing Care Facilities
XXXX Nursing Care Facilities
XXX Mental Health, Mental Retardation, and Substance Abuse
Facilities
XXXX Mental Retardation Facilities
XXXX Mental Health and Substance Abuse Facilities
XXX Community Care Facilities for the Elderly
XXXX Community Care Facilities for the Elderly
XXX Other Residential Care Facilities
XXXX Other Residential Care Facilities
XX Social Assistance
XXX Individual and Family Services
XXXX Child and Youth Services
XXXX Services for the Elderly and Persons with Disabilities
XXXX Other Individual and Family Services
XXX Community Food, Shelter, and Emergency and Relief Services
XXXX Community Food Services
XXXX Community Housing Services
XXXX Emergency and Other Relief Services
XXX Job Training and Vocational Rehabilitation Services
XXXX Job Training and Vocational Rehabilitation Services
XXX Child Day-care Services
XXXX Child Day-care Services

Attachment 2--North American Industry Classification System

Draft Classification for:

Ambulatory Health Care Services
Hospitals
Nursing and Residential Care Facilities
Social Assistance

Representatives of the statistical agencies of Canada, Mexico and
the United States agree to a draft classification for these industries.
The draft classification constitutes the sector Health and Social
Assistance. The sector is subdivided into 4 subsectors, 18 industry
groups, and 30 industries.

A General Outline

The health and social services industries provide health care and
social assistance for individuals. Because it is sometimes difficult to
distinguish between the boundaries of health care and social
assistance, these industries are grouped together in a new Health and
Social Assistance sector. The industries are arranged in order from
those providing the most intensive type of health care to those
providing minimal health care with social assistance to those providing
only social assistance to individuals.
Industries in the Ambulatory Health Care Services subsector provide
health care services directly or indirectly to ambulatory patients and
do not usually provide inpatient overnight services. Health
practitioners in this subsector provide outpatient services, with the
facilities and equipment not usually being the most significant part of
the production process.
The Hospitals subsector includes establishments that provide
medical, diagnostic, and treatment services that include physician,
nursing and other health services to inpatients and the specialized
accommodation services required by inpatients. Hospitals also may
provide outpatient services as a secondary activity. Establishments in
the Hospitals subsector provide inpatient health services, many of
which can only be provided using the specialized facilities and
equipment that form a significant and integral part of the production
process.
The Nursing and Residential Care Facilities subsector includes
establishments that provide residential care combined with either
nursing, supervisory or other types of care as required by the
residents. In this subsector, the facilities are a significant part of
the production process and the care provided is a mix of health and
social services with the health services being largely some level of
nursing services.
The Social Assistance subsector includes establishments that
provide a wide variety of assistance services directly to their
clients. These services do not include residential or accommodation
services except on a short stay basis.

Limitations and Constraints of the Classification

The draft classification avoids the problem of the delineation of
the boundary between health and social services by incorporating both
into a continuum.
General Medical and Surgical Hospitals is a very large industry
group. NAICS developers considered subdividing this NAICS industry;
however, research indicated a wide range of services are typically
provided at general medical and surgical hospitals. Some hospitals
provide specific advanced medical procedures such as organ transplants
that require skilled specialists and special equipment for the
operating and recovery phases of the procedures. Other hospitals may
offer the same or different advanced medical procedures

[[Page 26563]]

with their corresponding technologies, along with the less specialized
services and less sophisticated technologies that are offered by
virtually all hospitals. The mix of services and technologies among
hospitals varies significantly along this continuum, but no clear basis
for differentiating among general and surgical hospitals based on their
mix of services or technological threshold was found.

Relationship to ISIC

All of the 30 industries included in these subsectors are contained
within Division 85, Health and Social Work, in the current
International Standard Industrial Classification of All Economic
Activities (ISIC, Revision 3) of the United Nations. ISIC Division 85,
however, includes veterinary services; in NAICS, veterinary services
are in the Professional, Scientific, and Technical Services subsector.

Some Changes to the National Classifications

Changes to the Canadian SIC include splitting CSIC 8621, Homes for
Personal and Nursing Care, into Nursing Care Facilities and Community
Care Facilities for the Elderly, and expanding CSIC 8646, Meal Services
(Non-Commercial), to include a broader range of food services in the
new industry Community Food Services. Community Housing Services and
Emergency and Other Relief Services are essentially new industries for
Canada. Air ambulance services move out of CSIC 4513, Non-Scheduled Air
Transport, Specialty Industry, to Ambulance Services. CSIC 8689, Other
Health Laboratories, moves out of this sector. CSIC 8693, Health Care
Research Agencies, moves out of this sector.
For Mexico, the new Health and Social services sector represents
the grouping of medical and social assistance classified in CMAP groups
9231, Medical, Dental, and Veterinary Services (Private Sector); 9232,
Medical, Dental, and Veterinary Services (Public Sector); 9241, Social
Security Services (Private Sector); and 9242, Social Security Services
(Public Sector). Veterinary services are no longer included in this
sector. A distinction is made between the public and private sector in
CMAP for both health and social services. Because this distinction is
not maintained in NAICS, it will be made by Mexico at the national
industry level.
For the United States, there is a major change to 1987 SIC's 8011,
Offices and Clinics of Doctors of Medicine, and 8031, Offices and
Clinics of Doctors of Osteopathy. NAICS industry Offices of Physicians
now includes both doctors of medicine and doctors of osteopathy. The
1987 distinction between the two types of doctors has been eliminated
to recognize the convergence of the two types of medical service. The
training and the specialties in which the doctors of medicine and
doctors of osteopathy are engaged in many cases are the same and it is
more and more common for the two types of doctors to practice together.
The U.S. will define a separate national industry for physicians who
practice mental health specialties. In addition to this change to 1987
SIC's 8011 and 8031, HMO medical centers and ambulatory surgical and
free-standing emergency centers have been moved to NAICS industry Other
Outpatient Care Facilities. The U.S. will recognize separate industries
for these activities in its national detail. Another major change is
the transfer of ambulance services from 1987 SIC's 4119, Local
Passenger Transportation, Not Elsewhere Classified, and 4522, Air
Transportation, Nonscheduled, into Ambulatory Health Care Services. The
medical services included in the Ambulance Services industry are judged
to be of greater significance than the vehicle used and the
significance of the medical service dwarfs the transportation service
also provided. Dental Laboratories, 1987 SIC 8072, are moved from the
medical subsector to the Miscellaneous Manufacturing subsector, because
making dentures, crowns, bridgework and artificial teeth is similar to
other manufacturing processes classified there.

Achievements of Objectives

The classification meets the objectives for the North American
Industry Classification System (NAICS). It is comprised of industries
that group establishments with similar production processes, that is,
it applies the production-oriented economic concept. In the main, the
hierarchical structure of the classification also follows the
production concept.
The classification achieves comparability for the three
participating countries. All countries agree on the definitions of the
industries.
Other objectives of the NAICS project have also been met. New
industries that recognize current health and social service
establishments have been established. New and emerging service
industries have been created, especially in the area of social
assistance.
The industries are economically significant. Some NAICS industries
are much larger than others, but this was necessary to ensure
comparability among the countries or because it was not possible to
further subdivide large industries.
Finally, disruptions to time series, while they exist, have been
minimized to the extent possible. Most of the changes to time series
reflect the changing structure of health care across the three
countries. For the U.S., additional changes have been made to the
national detail to reflect these changes.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the four NAICS industry
subsectors presented in Part 1, Section A--Attachment 1, contain less
detail than is currently in the U.S. SIC system, and less detail than
is required to meet important analytical requirements in the U.S. The
three country agreement on NAICS envisions that each country may
develop national detailed industries below the NAICS industry level, so
long as the national detail can be aggregated to the NAICS
classification, thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the four
NAICS industry subsectors covered in Part I of this notice. For cases
where no 5-digit detail is shown, the ECPC is proposing that the NAICS
4-digit industries will also represent the most detailed U.S.
industries.

[[Page 26564]]

XXXXX.............. Offices of Physicians N *8011 Offices and Clinics of Doctors of
except Mental Health Medicine (except mental health
Specialists. specialists).
................ *8031 Offices and Clinics of Doctors of
Osteopathy (except mental health
specialists).
XXXXX.............. Offices of Physicians, N *8011 Offices and Clinics of Doctors of
Mental Health Medicine (mental health
Specialists. specialists).
................ *8031 Offices and Clinics of Doctors of
Osteopathy (mental health
specialists).
XXX................ Offices of Dentists:
XXXX............... Offices of Dentists....... E 8021 Offices and Clinics of Dentists.
XXX................ Offices of Other Health
Practitioners:
XXXX............... Offices of Chiropractors.. E 8041 Offices and Clinics of
Chiropractors.
XXXX............... Offices of Optometrists... E 8042 Offices and Clinics of
Optometrists.
XXXX............... Offices of Mental Health N *8049 Offices and Clinics of Health
Practitioners, except Practitioners, NEC (mental
Physicians. health practitioners except
physicians).
XXXX............... Offices of Physical, N *8049 Offices and Clinics of Health
Occupational, and Speech Practitioners, NEC (physical,
Therapists and occupational, speech therapists,
Audiologists. and audiologists).
XXXX............... Offices of All Other
Health Practitioners:
XXXXX.............. Offices of Podiatrists... E 8043 Offices and Clinics of
Podiatrists.
XXXXX.............. Miscellaneous Health N *8049 Offices and Clinics of Health
Practitioners. Practitioners, NEC (except
mental health practitioners,
physical, occupational, speech
therapists, and audiologists).
XXX................ Outpatient Care Facilities:
XXXX............... Family Planning Centers... N *8093 Speciality Outpatient Facilities,
NEC (family planning centers).
................ *8099 Health and Allied Services, NEC
(childbirth preparation).
XXXX............... Outpatient Mental Health N *8093 Specialty Outpatient Facilities,
Facilities. NEC (mental health facilities).
XXXX............... Other Outpatient Care
Facilities:
XXXXX.............. HMO Medical Centers...... N *8011 Offices and Clinics of Doctors of
Medicine (HMO Medical Centers).
XXXXX.............. Kidney Dialysis Centers.. E 8092 Kidney Dialysis Centers.
XXXXX.............. Ambulatory Surgical and N *8011 Offices and Clinics of Doctors of
Freestanding Emergency Medicine (surgical and emergency
Centers. centers).
XXXXX.............. All Other Outpatient Care N *8093 Specialty Outpatient Facilities,
Facilities. NEC (except family planning and
mental health centers).
XXX................ Medical and Diagnostic
Laboratories:
XXXX............... Medical and Diagnostic
Laboratories:
XXXXX.............. Medical Laboratories..... R *8071 Medical Laboratories (except
diagnostic imaging centers).
XXXXX.............. Diagnostic Imaging N *8071 Medical Laboratories (diagnostic
Centers. imaging centers).
XXX................ Home Health Care Services:
XXXX............... Home Health Care Services:
XXXXX.............. Home Health Agencies..... N *8082 Home Health Care Services (home
health agencies).
XXXXX.............. Other Home Health Care N *8082 Home Health Care Services (except
Services. home health agencies).
XXX................ Miscellaneous Ambulatory
Health Care Services:
XXXX............... Ambulance Services........ N *4119 Local Passenger Transportation,
NEC (land ambulance)
................ *4522 Air Transportation, Nonscheduled
(air ambulance).
XXXX............... Other Miscellaneous Health
Care Services:
XXXXX.............. Blood and Organ Banks.... N *8099 Health and Allied Services, NEC
(blood and organ banks).
XXXXX.............. All Other Miscellaneous N *8099 Health and Allied Services, NEC
Health Care Services. (except blood and organ banks).
XX................. Hospitals:
XXX................ General Medical and
Surgical Hospitals:
XXXX............... General Medical and R 8062 General Medical and Surgical
Surgical Hospitals. Hospitals.
................ *8069 Specialty Hospitals, Except
Psychiatric (childrens'
hospitals).
XXX................ Psychiatric and Substance
Abuse Hospitals:
XXXX............... Psychiatric and Substance R 8063 Psychiatric Hospitals
Abuse Hospitals.
*8069 Specialty Hospitals, Except
Psychiatric (substance abuse
hospitals).
XXX................ Specialty Hospitals, except
Psychiatric and Substance
Abuse Hospitals:
XXXX............... Specialty Hospitals, R *8069 Specialty Hospitals, Except
except Psychiatric and Psychiatric (except childrens'
Substance Abuse Hospitals. and substance abuse hospitals).
XX................. Nursing and Residential Care
Facilities:
XXX................ Nursing Care Facilities:
XXXX............... Nursing Care Facilities... N *8051 Skilled Nursing Care Facilities
(except continuing care
retirement communities).
................ *8052 Intermediate Care Facilities
(except continuing care
retirement communities and
mental retardation facilities).
................ *8059 Nursing and Personal Care
Facilities, NEC (except
continuing care retirement
communities).

[[Page 26565]]

XXX................ Mental Health, Mental
Retardation, and Substance
Abuse Facilities:
XXXX............... Mental Retardation N *8052 Intermediate Care Facilities
Facilities. (mental retardation facilities).
XXXX............... Mental Health and N *8361 Residential Care (mental health
Substance Abuse and substance abuse facilities).
Facilities.
XXX................ Community Care Facilities
for the Elderly:
XXXX............... Community Care Facilities
for the Elderly:
XXXXX.............. Continuing Care Retirement N *8051 Skilled Nursing Care Facilities
Communities. (continuing care retirement
communities).
................ *8052 Intermediate Care Facilities
(continuing care retirement
communities).
................ *8059 Nursing and Personal Care
Facilities, NEC (continuing care
retirement communities).
XXXXX.............. Homes for the Elderly.... N *8361 Residential Care (homes for the
elderly).
XXX................ Other Residential Care
Facilities:
XXXX............... Other Residential Care N *8361 Residential Care (except mental
Facilities. health and substance abuse
facilities, homes for the
elderly).
XX................. Social Assistance:
XXX................ Individual and Family
Services:
XXXX............... Child and Youth Services.. N *8322 Individual and Family Social
Services (child and youth
services).
XXXX............... Services for the Elderly N *8322 Individual and Family Social
and Persons with Services (services for the
Disabilities. elderly and disabled).
XXXX............... Other Individual and N *8322 Individual and Family Social
Family Services. Services (except services for
children, youth, elderly,
disabled; food, housing,
emergency and relief).
XXX................ Community Food, Shelter,
and Emergency Relief
Services:
XXXX............... Community Food Services... N *8322 Individual and Family Social
Services (food services).
XXXX............... Community Housing
Services:
XXXXX.............. Temporary Shelter........ N *8322 Individual and Family Social
Services (temporary shelter).
XXXXX.............. Other Community Housing N *8322 Individual and Family Social
Services. Services (housing services
except temporary shelter).
XXXX............... Emergency and Other Relief N *8322 Individual and Family Social
Services. Services (emergency and relief
services).
XXX................ Job Training and Vocational
Rehabilitation Services:
XXXX............... Job Training and E 8331 Job Training and Vocational
Vocational Rehabilitation Rehabilitation Services.
Services.
XXX................ Child Day Care Services:
XXXX............... Child Day-care Services... E 8351 Child Day Care Services.
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and
* means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

[[Page 26566]]

Offices of Physical, Offices of Physical, Occupational,
Occupational, and Speech and Speech Therapists and
Therapists and Audiologists. Audiologists.
Other Offices of Heath Miscellaneous Health Practitioners.
Practitioners.
[email protected] Skilled Nursing Care Facilities:
Continuing Care Retirement Continuing Care Retirement
Communities. Communities (pt.).
All Other Skilled Nursing Care Nursing Care Facilities (pt.).
Facilities.
[email protected] Intermediate Care Facilities:
Continuing Care Retirement Continuing Care Retirement
Communities. Communities (pt.).
Mental Retardation Facilities. Mental Retardation Facilities.
Other Intermediate Care Nursing Care Facilities (pt.).
Facilities.
[email protected] Nursing and Personal Care
Facilities, Not Elsewhere
Classified:
Continuing Care Retirement Continuing Care Retirement
Communities. Communities (pt.).
Other Nursing and Personal Nursing Care Facilities (pt.).
Care Facilities.
[email protected] General Medical and Surgical General Medical and Surgical
Hospitals. Hospitals (pt.).
[email protected] Psychiatric Hospitals........... Psychiatric and Substance Abuse
Hospitals (pt.).
[email protected] Specialty Hospitals, Except
Psychiatric:.
Children's Hospitals.......... General Medical and Surgical
Hospitals (pt.).
Psychiatric and Substance Psychiatric and Substance Abuse
Abuse Hospitals. Hospitals (pt.).
Other Specialty Hospitals..... Specialty Hospitals, Except
Psychiatric and Substance Abuse
Hospitals.
8071.................................... Medical Laboratories:
Diagnostic Imaging Centers.... Diagnostic Imaging Centers.
Medical Laboratories, Except Medical Laboratories.
Diagnostic Imaging Centers.
8072.................................... Dental Laboratories............. Dental Laboratories (Included in
Miscellaneous Manufacturing
subsector).
8082.................................... Home Health Care Services:
Home Health Agencies.......... Home Health Agencies.
Home Health Care Services, Other Home Health Care Services.
Except Home Health Agencies.
8092.................................... Kidney Dialysis Centers......... Kidney Dialysis Centers.
8093.................................... Specialty Outpatient Facilities,
Not Elsewhere Classified:
Family Planning Centers....... Family Planning Centers.
Outpatient Mental Health Outpatient Mental Health Facilities.
Facilities.
Other Specialty Outpatient All Other Outpatient Care
Facilities. Facilities.
8099.................................... Health and Allied Services, Not
Elsewhere Classified:
Blood and Organ Banks......... Blood and Organ Banks.
Medical artists............... Graphic Design Services (pt.)
(Included in Professional,
Scientific, and Technical Services
subsector).
Medical Photography........... Commercial Photography (pt.)
(Included in Professional,
Scientific, and Technical Services
subsector).
Other Health and Allied All Other Miscellaneous Health Care
Services. Services.
8322.................................... Individual and Family Social
Services:
Child and Youth Services...... Child and Youth Services.
Community Food Services....... Community Food Services.
Community Housing Services, Other Community Housing Services.
Except Temporary Shelters.
Emergency and Other Relief Emergency and Other Relief Services.
Services.
Services for the Elderly and Services for the Elderly and Persons
Persons with Disabilities. with Disabilities.
Temporary Shelter............. Temporary Shelter.
Other Individual and Family Other Individual and Family
Services. Services.
8331.................................... Job Training and Vocational Job Training and Vocational
Rehabilitation Services. Rehabilitation Services.
8351.................................... Child Day-care Services......... Child Day Care Services.
8361.................................... Residential Care:
Homes for the Elderly......... Homes for the Elderly.
Mental Health and Substance Mental Health and Substance Abuse
Abuse Facilities. Facilities.
Other Residential Care........ Other Residential Care Facilities.
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' mean ``part of''. @ means a time series break has been created that is greater than 3%
of the 1992 revenues for the 1987 SIC industry.

Description of Changes to the U.S. System

1. Ambulatory Health Care Services--Sixteen new NAICS or national
industries were added to the 1997 industry structure for this subsector
to better describe the growing and changing U.S. Ambulatory Health Care
Services industries. A number of these new industries were created from
1987 Not Elsewhere Classified (NEC) industries. The new industries are:

[[Page 26567]]

Offices of Physicians, except Mental Health Specialists from part
of 1987 SIC code 8011, Offices and Clinics of Doctors of Medicine, and
part of 1987 SIC code 8031, Offices and Clinics of Doctors of
Osteopathy. In most cases, these two types of physicians provide the
same services.
Offices of Physicians, Mental Health Specialists from Part of 1987
SIC code 8011, Offices and Clinics of Doctors of Medicine, and part of
1987 SIC code 8031, Offices and Clinics of Doctors of Osteopathy.
Mental health is separated from other physicians because the production
process they use most differs from that used by other physicians.
Offices of Mental Health Practitioners, Except Physicians from part
of 1987 SIC 8049, Offices of Health Practitioners, NEC. This new
industry was created because it had a unique production process.
Offices of Physical, Occupational, and Speech Therapists and
Audiologists from part of 1987 SIC 8049, Offices of Health
Practitioners, NEC. This new industry was created because it had a
unique production process.
Miscellaneous Health Practitioners from part of 1987 SIC 8049,
Offices and Clinics of Health Practitioners, NEC. This is one of two
new residual categories from the current NEC category. It includes only
offices of practitioners.
Family Planning Centers from part of 1987 SIC 8093, Specialty
Outpatient Clinics, NEC, and part of 1987 SIC 8099, Health and Allied
Services, NEC. This new industry was created because it had a unique
production process.
Outpatient Mental Health Facilities from part of 1987 SIC 8093,
Specialty Outpatient Clinics, NEC. This new industry was created
because it had a unique production process.
HMO Medical Centers from part of 1987 SIC 8011, Offices and Clinics
of Doctors of Medicine. The range of services provided in these centers
are generally greater than in physician offices.
Ambulatory Surgical and Freestanding Emergency Centers from part of
1987 SIC 8011, Offices and Clinics of Doctors of Medicine. This new
industry was created because it had a unique production process.
All Other Outpatient Care Facilities from part of 1987 SIC 8049,
Offices and Clinics of Health Practitioners, NEC. This is the second
residual category from the current NEC. It contains only outpatient
care facilities.
Diagnostic Imaging Centers from part of 1987 SIC 8071, Medical
Laboratories. This new industry was created because it had a unique
production process.
Home Health Agencies from part of 1987 SIC 8082, Home Health Care
Services. This industry provides skilled nursing, physical and other
therapy, and other services provided in the home.
Other Home Health Care Services from part of 1987 SIC 8082, Home
Health Care Services. This residual of the current industry includes,
for example, home inhalation, infusion, and perfusion therapy.
Ambulance Services from parts of 1987 SIC 4119, Local Passenger
Transportation, Not Elsewhere Classified, and 1987 SIC 4522, Air
Transportation, Nonscheduled. The medical service provided by ambulance
personnel is more important than the transportation.
Blood and Organ Banks from part of 1987 SIC 8099, Health and
Allied Services, NEC. The new industry was created because it had a
unique production process.
All Other Miscellaneous Health Care Services from part of 1987 SIC
8099, Health and Allied Services, NEC. This is the new residual
category for the current 8099.
2. Hospitals--There are no new industries, but some content changes
were made to achieve comparability among the three countries. These
are:
Children's hospitals were moved from 1987 SIC 8069, Specialty
Hospitals, except Psychiatric, to General Medical and Surgical
Hospitals. These hospitals provide the wide variety of services found
in general hospitals.
Alcohol and drug abuse hospitals were moved from 1987 SIC 8069,
Speciality Hospitals, except Psychiatric, to form part of Psychiatric
and Substance Abuse Hospitals to recognize the growing number of these
hospitals.
3. Nursing and Residential Care Facilities--The three industries in
1987 SIC Industry Group 805, Nursing and Personal Care Facilities, and
1987 SIC 8361, Residential Care, have been redistributed into five
NAICS industries and two additional National industries to better
describe this growing activity and to eliminate the distinction made in
1987 based on the Medicare/Medicaid programs. The new industries are:
Nursing Care Facilities from parts of 1987 SIC 8051, Skilled
Nursing Care Facilities; 1987 SIC 8052, Intermediate Care Facilities;
and 1987 SIC 8059, Nursing and Personal Care Facilities, NEC. These
industries were combined because many establishments provide care for
persons needing varying levels of health care.
Mental Retardation Facilities from part of 1987 SIC 8052,
Intermediate Care Facilities. This new industry was created because it
had a production process not found in nursing homes.
Mental Health and Substance Abuse Facilities from part of 1987 SIC
8361, Residential Care. This new industry was created because it had a
unique production process.
Continuing Care Retirement Communities from parts of 1987 SIC 8051,
Skilled Nursing Care Facilities; 1987 SIC 8052, Intermediate Care
Facilities; and 1987 SIC 8059, Nursing and Personal Care Facilities,
NEC. This new industry was created to handle the growing number of
establishments having facilities for various levels of care at one
facility, including nursing care, housekeeping, meal service, and other
services to assist elderly persons in daily living.
Homes for the Elderly from part of SIC 1987 8361, Residential Care.
This new industry was created to provide data on establishments known
as retirement homes or assisted living facilities, where medical care
is incidental.
Other Residential Care Facilities from part of 1987 SIC 8361,
Residential Care. This is a new residual category from the current
8361, Residential Care.
4. Social Assistance--1989 SIC 8322, Individual and Family Social
Services, has been split into seven new industries in two industry
groups. These new industries reflect the growing and changing character
of social assistance industries. Additional industries for social
assistance were requested by several organizations interested in
activities of not for profit organizations. These new industries were
created to fill that need and because the new industries had different
production processes.
The industries included in the industry group Individual and Family
Services are:

Child and Youth Services
Services for the Elderly and Persons with Disabilities
Other Individual and Family Services

The industries under the new industry group Community Food,
Shelter, and Emergency Relief Services are:

Community Food Services
Temporary Shelter (U.S. national industry)
Other Community Housing Services (U.S. national industry)
Emergency and Other Relief Services

Part II--Proposed New Industry Structure for Educational Services

Section A--NAICS Structure

North American Industry Classification System
(NAICS)

[[Page 26568]]

Agreement Number 12

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following subsector:
Educational Services
The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on September 27, 1995-September 29, 1995 in
Mexico City, Mexico.

Attachment 1--NAICS Structure

X Educational Services
XXX Elementary and Secondary Schools
XXXX Elementary and Secondary Schools
XXX Junior Colleges
XXXX Junior Colleges
XXX Colleges, Universities, and Professional Schools
XXXX Colleges, Universities, and Professional Schools
XXX Business, Computer and Management Training Schools
XXXX Business and Secretarial Schools
XXXX Computer Training Schools
XXXX Professional and Management Development Training Schools
XXX Technical and Trade Schools
XXXX Technical and Trade Schools
XXX Miscellaneous Schools and Instruction
XXXX Fine Arts Schools
XXXX Athletic Instruction
XXXX Language Schools
XXXX Other Miscellaneous Schools and Instruction
XXX Educational Support Services
XXXX Educational Support Services

Attachment 2--North American Industry Classification System

Draft Classification for:

Educational Services

A General Outline

Educational services industries provide instruction and training in
a wide variety of subjects. The industry groups within this subsector
(Elementary and Secondary Schools; Junior Colleges; Colleges,
Universities, and Professional Schools; Business, Computer and
Management Training Schools; Technical and Trade Schools; Miscellaneous
Schools and Instruction; and Educational Support Services) are based on
the level of educational services provided, and therefore on the level
and types of training that are required of the instructors and
teachers.
The Elementary and Secondary Schools industry group includes
establishments that furnish courses that comprise each country's basic
preparatory education. Included are parochial schools and military
academies furnishing basic preparatory academic courses and secondary
schools that furnish both academic and technical courses.
Junior Colleges furnish academic or academic and technical courses
and grant associate or equivalent academic degrees, diplomas, or
certificates that are below the college or university level. This
grouping includes community colleges that offer associate degrees. The
requirement for admission to an associate or equivalent degree program
is at least a high school diploma or equivalent general academic
training. Schools having junior college grades in conjunction with
secondary grades are classified in Elementary and Secondary Schools.
Colleges, Universities, and Professional Schools furnish academic
courses and grant academic degrees at the baccalaureate or postgraduate
level. The requirement for admission is at least a high school diploma
or equivalent general academic training.
Business, Computer and Management Training Schools include
establishments that provide training in business, secretarial,
computer, and related fields. This industry group contains three
industries. Business and Secretarial Schools offer courses in office
procedures and secretarial and stenographic skills and may offer
courses in basic computer skills, word processing, spreadsheet, and
desktop publishing. In addition, they offer such classes as office
machine operation, reception, communications, and other skills designed
for individuals pursuing a clerical or secretarial career or a career
in court reporting. Colleges of business within universities are
excluded. The Computer Training Schools industry reflects the
increasing demand for on-site and specialized computer training.
Establishments included in this industry conduct training on all phases
of computer activities including computer programming, software
packages, computerized business systems, computer electronics
technology, computer operations, and local area network management.
Establishments that design custom computer systems and then provide
training in the use of these custom systems are excluded; these
establishments are included in the Professional, Scientific and
Technical Services subsector. Professional and Management Development
Training Schools include establishments that offer an array of short
duration courses and seminars for career development. These
establishments may customize or modify their courses to meet the
special needs of customers. The courses typically focus on executive
management and professional development and may be provided directly to
individuals or through employers' training programs. The courses may be
offered on-site or off-site.
Technical and Trade Schools provide training in a wide variety of
technical subjects and trades. Because the nature of technical training
varies so widely among the three countries, only one NAICS 4-digit
industry is defined within this industry group. Each country may
provide national industry detail below the NAICS industry level to
reflect technical and trade schools found within each country.
The Miscellaneous Schools and Instruction industry group includes
4-digit industries for Fine Arts Schools, Athletic Instruction, and
Language Schools. Fine Arts Schools include art schools, drama schools,
music schools, professional dance schools, other dance schools and
studios. However, schools that offer high school diplomas or academic
degrees are placed in the other appropriate industry groups, even if
they specialize in fine arts. Athletic Instruction includes
establishments that provide training in athletic activities such as
baseball, basketball, golf, martial

[[Page 26569]]

arts, and skiing. Language Schools are establishments that teach
foreign languages. They are designed to offer language instruction
ranging from conversational skills for personal enrichment to intensive
training courses for career or educational opportunities. Skills taught
by these establishments may include speaking, reading, and writing in
another language.
Educational Support Services include educational consultants,
educational test development and evaluation services, educational
testing services, student exchange programs, educational curriculum
development, and other non-instructional services that support
educational processes or systems. Establishments primarily engaged in
providing job training for the unemployed, underemployed, persons with
disabilities, and persons who have a job market disadvantage because of
a lack of education, job skills, or experience are classified in the
Health and Social Assistance sector.

Limitations and Constraints of the Classification

Defining educational services industries that are economically
significant and homogeneous was often difficult due to lack of data.
Some industries that were considered when establishing NAICS industries
for educational services are either too small or not specialized in all
three countries, for example correspondence schools. It is not possible
to use the proposed system to identify specific fields of study because
many establishments offer a wide range of courses. Further, it is not
possible to differentiate career-oriented training from training taken
for personal development as many types of establishments provide both
kinds of training.
The way activities are defined in establishments differs in the
three countries, preventing the establishment of additional NAICS
industries. For example, in Mexico there are separate establishments
that provide special educational instruction for elementary and
secondary school students with learning disabilities while in the
United States and Canada, special educational instruction is generally
provided by schools serving all students. Also in the United States,
establishments providing trade apprenticeship training are separately
identifiable, whereas in the other countries this type of training
generally occurs ``on the job.''
Changes were required in each country's national classification to
reach international comparability. The production principle was applied
whenever these changes were required.

Relationship to ISIC

Most 4-digit NAICS industries in this sector are contained within
Division 80, Education, of the current International Standard
Industrial Classification of all Economic Activities (ISIC, Revision 3)
of the United Nations. Therefore, data tabulated using NAICS also can
be tabulated according to ISIC with the following exceptions: (1)
Informal education activities below kindergarten (or preschool in
Mexico) are often combined with day-care, and are classified with the
Child Day-care industry in the NAICS subsector for Social Assistance
and (2) NAICS classifies athletic instruction in Educational Services,
but ISIC classifies it in 924, Sporting and Other Recreational
Activities. There are five 4-digit industries covering educational
services in ISIC while NAICS is more detailed, providing for twelve
industries. The NAICS industries for Junior Colleges and Colleges,
Universities, and Professional Schools are directly comparable to ISIC
industry, 8030, Higher Education. In ISIC, Elementary and Secondary
Schools are separate industries, while in NAICS they are combined,
because in the U.S. data on schools are usually collected from school
systems that operate both levels.

Some Changes to National Classification

In Canada CSIC 8521, Post-Secondary Non-University Education, has
been split into Junior Colleges, Business and Secretarial Schools,
Computer Training, Technical and Trade Schools, and Fine Arts Schools.
Aviation Schools have been moved out of CSIC 4513, Non-Scheduled Air
Transport Specialty Industry, to this subsector because they primarily
provide instruction, even though aircraft may be required in some
portions of the instruction process. Sports instruction has been moved
out of CSIC 96, Amusement and Recreational Service Industries, and
becomes NAICS industry, Athletic Instruction. CSIC 8599, Other
Educational Services, has been split into Language Schools, Other
Miscellaneous Instruction and Educational Support Services. Two
industries have been moved from Educational Service Industries. These
are CSIC 8541, Library Services, to the new Information sector, and
CSIC 8551 Museums and Archives, to the new Museums, Historical Sites
and Similar Institutions subsector. Both will be published separately.
The Mexican CMAP groups 9211, Education Services (Private), and
CMAP 9212, Education Services (Public), are combined in the NAICS
Educational Services subsector. The NAICS Educational Services
subsector does not distinguish between establishments in the private
and public sectors. Mexico will make this distinction in its national
detail. The only activities that came from another CMAP subsector are
athletic instruction and educational support services.
For the United States, cosmetology and barber schools moved into
Educational Services from 1987 SIC's 7231, Beauty Shops, and 7241,
Barber Shops. Dance schools move into Educational Services from 1987
SIC 7911, Dance Studios, Schools, and Halls. A dancing school is not
closely related to a ballroom, though both may have dance floors.
Athletic instruction moves from 1987 SIC 7999, Amusement and Recreation
Services, Not Elsewhere Classified, to Educational Services. Libraries,
1987 SIC 8231, have been moved from Educational Services to the new
Information sector, to be published separately.

Achievement of Objectives

The classification meets the objectives for the North American
Industry Classification System (NAICS). It is comprised of industries
that group establishments with similar production processes, that is,
it applies the production-oriented economic concept. In the main, the
hierarchical structure of the classification also follows the
production concept.
The classification achieves comparability for the three
participating countries. All countries agree on the detailed
definitions of the industries. However, each country will use
terminology that reflects its own educational system.
Other objectives of the NAICS project have also been met. New
industries have been added to reflect trends in adult education and
professional training.
The industries are highly specialized and economically significant.
This enhances the classification's suitability for sampling and other
aspects of survey operations. Finally, disruptions to time series,
while they exist, have been minimized and generally result from
subdividing existing ``not elsewhere classified'' industries. The major
changes are well-defined and can be taken into account in linking time
series.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the

[[Page 26570]]

NAICS industry subsector presented in Part II, Section A--Attachment 1,
contain less detail than is currently in the U.S. SIC system, and less
detail than is required to meet important analytical requirements in
the U.S. The three country agreement on NAICS envisions that each
country may develop national detailed industries below the NAICS
industry level, so long as the national detail can be aggregated to the
NAICS classification, thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS
industry subsector covered in Part II of this notice. For cases where
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

Table 1
----------------------------------------------------------------------------------------------------------------
1987
1997 NAICS and U.S. Status code SIC 1987 SIC description
description code
----------------------------------------------------------------------------------------------------------------
XX................. Educational Services:
XXX................ Elementary and Secondary
Schools:
XXXX............... Elementary and Secondary E 8211 Elementary and Secondary Schools.
Schools.
XXX................ Junior Colleges:
XXXX............... Junior Colleges........... E 8222 Junior Colleges and Technical
Institutes.
XXX................ Colleges, Universities, and
Professional Schools:
XXXX............... Colleges, Universities, E 8221 Colleges, Universities, and
and Professional Schools. Professional Schools.
XXX................ Business, Computer, and
Management Training
Schools.
XXXX............... Business and Secretarial E 8244 Business and Secretarial Schools.
Schools.
XXXX............... Computer Training Schools. E 8243 Data Processing Schools.
XXXX............... Professional and N *8299 Schools and Educational Services,
Management Development Not Elsewhere Classified
Training Schools. (professional and management
development training).
XXX................ Technical and Trade
Schools:
XXXX............... Technical and Trade
Schools:
XXXXX.............. Cosmetology and Barber N *7231 Beauty Shops (beauty and
Schools. cosmetology schools).
*7241 Barber Shops (barber colleges).
XXXXX.............. Vocational and Technical N *8249 Vocational Schools, Not Elsewhere
Schools. Classified (vo-tech schools,
except high schools).
XXXXX.............. Aviation and Flight N *8249 Vocational Schools, Not Elsewhere
Training. Classified (aviation schools,
excluding flying instruction).
*8299 Schools and Educational Services,
Not Elsewhere Classified (flying
instruction).
XXXXX.............. Apprenticeship Training.. N *8249 Vocational Schools, Not Elsewhere
Classified (vocational
apprenticeship training).
XXXXX.............. Other Technical and Trade N *8249 Vocational Schools, Not Elsewhere
Schools. Classified (except vo-tech
schools, aviation and flight
training, apprenticeship
training, and driving schools).
XXX................ Miscellaneous Schools and
Instruction:
XXXX............... Fine Arts Schools......... N *8299 Schools and Educational Services,
Not Elsewhere Classified (art,
drama, and music schools).
*7911 Dance Studios, Schools, and Halls
(dance instructors, and
professional and other dance
schools).
XXXX............... Athletic Instruction...... N *7999 Amusement and Recreation
Services, Not Elsewhere
Classified (baseball,
basketball, bowling, gymnastic,
judo, karate, parachute, scuba
and skin diving, skating, ski,
swimming, tennis, and other
sports instruction; and sports
instructional schools and
camps).
XXXX............... Language Schools.......... N *8299 Schools and Educational Services,
Not Elsewhere Classified
(language schools).
XXXX............... Other Miscellaneous
Schools and Instruction:.
XXXXX.............. Exam Preparation and N *8299 Schools and Educational Services,
Tutoring. Not Elsewhere Classified (exam
preparation and tutoring).
XXXXX.............. Automobile Driving N *8249 Vocational Schools, Not Elsewhere
Schools. Classified (truck driving
schools).
*8299 Schools and Educational Services,
Not Elsewhere Classified
(automobile driving
instruction).
XXXXX.............. All Other Miscellaneous N *8299 Schools and Educational Services,
Schools and Instruction. Not Elsewhere Classified (except
professional and management
training, aviation and flight
training, fine arts schools,
language schools, exam
preparation and tutoring,
automobile driving schools, and
educational support services).
XXX................ Educational Support
Services:
XXXX............... Educational Support N *8299 Schools and Educational Services
Services. Not Elsewhere Classified (except
instruction).

[[Page 26571]]

*8748 Business Consulting Services, Not
Elsewhere Classified
(educational test development
and evaluation services,
educational testing services,
and educational consultants).
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry R--revised industry; and
*means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

Table 2
----------------------------------------------------------------------------------------------------------------
1987 SIC code 1987 SIC description 1997 U.S. description
----------------------------------------------------------------------------------------------------------------
[email protected] Beauty Shops:
Beauty Shops.................. Beauty Shops (Included in Consumer
Services subsector).
Beauty and Cosmetology Schools Cosmetology and Barber Schools
(pt.).
7241.................................... Barber Shops:
Barber Shops.................. Barber Shops (Included in Consumer
Services subsector).
Barber Colleges............... Cosmetology and Barber Schools
(pt.).
[email protected] Dance Studios, Schools, and
Halls:
Dance Studios and Halls....... Miscellaneous Operators of Sports
and Recreation Facilities (Included
in Recreation, Amusement, and
Gambling subsector).
Dance Schools................ Fine Arts Schools (pt.).
7999.................................... Amusement and Recreation Athletic Instruction.
Services, Not Elsewhere
Classified.
8211.................................... Elementary and Secondary Schools Elementary and Secondary Schools.
8221.................................... Colleges, Universities, and Colleges, Universities, and
Professional Schools. Professional Schools.
8222.................................... Junior Colleges and Technical Junior Colleges.
Schools.
8231.................................... Libraries....................... Libraries and Archives (Included in
Information subsector).
8243.................................... Data Processing Schools......... Computer Training Schools.
8244.................................... Business and Secretarial Schools Business and Secretarial Schools.
[email protected] Vocational Schools, Not
Elsewhere Classified:
Trade Schools................. Apprenticeship Training.
Truck Drivers Schools......... Automobile Driving Schools (pt.).
Aviation Schools.............. Aviation and Flight Training (pt.).
Vocational Schools............ Vocational and Technical Schools.
Other Technical and Trade Other Technical and Trade Schools.
Schools.
[email protected] Schools and Educational
Services, Not Elsewhere
Classified:
Flying Instruction............ Aviation and Flight Training (pt.).
Automobile Driving Instruction Automobile Driving Schools (pt.).
Curriculum Development, Educational Support Services (pt.).
Educational.
Exam Preparation and Tutoring. Exam Preparation and Tutoring.
Art Schools................... Fine Arts Schools (pt.).
Language Schools.............. Language Schools.
Personal Development Schools.. Professional and Management
Development Training (pt.).
All Other Schools and All Other Miscellaneous Instruction.
Educational Services, Not
Elsewhere Classified.
[email protected] Business Consulting Services, Educational Support Services (pt.).
Not Elsewhere Classified.
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' meams ``part of'' @ means time series break has been created that is greater than 3% of
the 1992 revenues for the 1987 SIC industry.

Description of Changes to the U.S. System

Educational Services--Thirteen new industries are added to the 1997
industry structure for this industry subsector. Most of these new
industries have been formed by breaking apart old Not Elsewhere
Classified (NEC) industries in the 1987 U.S. SIC. New industries are as
follows:
Professional and Management Development Training Schools from part
of 1987 SIC 8299, Schools and Educational Services, NEC. This new
industry was created because it had a unique production function.
Cosmetology and Barber Schools from part of 1987 SIC 7231, Beauty
Shops, and 1987 SIC 7241, Barber Shops. This was moved to this sector
because the primary activity is education, even though these schools
give hair cuts.
Vocational and Technical Schools from part of 1987 SIC 8249,
Vocational Schools, NEC. This new industry was created because it had a
unique production function.
Aviation and Flight Training from parts of 1987 SIC 8249,
Vocational Schools NEC, and 1987 Industry Code 8299, Schools and
Educational Services, NEC. This new industry was created because it had
a unique production function.
Apprenticeship Training from part of 1987 SIC 8249, Vocational
Schools, NEC. This new industry was created because it had a unique
production function.
Other Technical and Trade Schools from part of 1987 SIC 8249,
Vocational Schools, NEC. This is the residual five digit category for
the four digit industry Technical and Trade Schools.

[[Page 26572]]

Fine Arts Schools from parts of 1987 SIC 8299, Schools and
Educational Services, NEC, and 1987 SIC 7911, Dance Studios, Schools,
and Halls. This new industry was created because it had a unique
production function.
Athletic Instruction from part of 1987 SIC 7999, Amusement and
Recreation Services, NEC. This was moved to this sector because the
primary activity is education, rather than entertainment.
Language Schools from part of 1987 SIC 8299, Schools and
Educational Services, NEC. This new industry was created because it had
a unique production function.
Exam Preparation and Tutoring from part of 1987 SIC 8299, Schools
and Educational Services, NEC. This new industry was created because it
had a unique production function.
Automobile Driving Schools from parts of 1987 SIC 8249, Vocational
Schools, NEC, and SIC 8299, Schools and Educational Services, NEC. This
new industry was created because it had a unique production function.
All Other Miscellaneous Schools and Instruction from part of 1987
SIC 8299, Schools and Educational Services, NEC. This is the residual
category for the subsector.
Educational Support Services from parts of 1987 SIC 8299, Schools
and Educational Services, NEC, and 1987 SIC 8748, Business Consulting
Services, NEC. This new industry differs from the others in that it
provides support to educational industries, rather than providing
instruction.
A major change to the 1987 Major Group, Educational Services, is
the movement of 1987 SIC 8231, Libraries, to the new Information
sector.
The number of Educational Services industries increased from 8 to
18. For time series linkage, six of the eight 1987 industries are
comparable within three percent of the 1997 industries.

Part III--Proposed New Industry Structure for Computer and Electronic
Product Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 13

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following subsector: Computer and Electronic Product Manufacturing
The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on September 27, 1995-September 29, 1995 in
Mexico City, Mexico.

Attachment 1--NAICS Structure

XX Computer and Electronic Product Manufacturing
XXX Computer and Peripheral Equipment Manufacturing
XXXX Computer and Peripheral Equipment Manufacturing
XXX Communications Equipment Manufacturing
XXXX Telephone Apparatus Manufacturing
XXXX Broadcast and Studio Equipment for Radio, TV, and Cable
Manufacturing
XXXX Other Communications Equipment Manufacturing
XXX Audio and Video Equipment Manufacturing
XXXX Audio and Video Equipment Manufacturing
XXX Semiconductor and Electronic Component Manufacturing
XXXX Semiconductor and Electronic Component Manufacturing
XXX Navigational, Measuring, Medical and Control Instrument
Manufacturing
XXXX Navigational, Measuring, Medical and Control Instrument
Manufacturing
XXX Manufacturing and Reproduction of Magnetic and Optical Media
XXXX Manufacturing and Reproduction of Magnetic and Optical Media
(Includes the manufacturing of blank audio and video tapes,
diskettes and CD-ROMs, and reproduction of software, audio, video,
and multimedia products)

Attachment 2--North American Industry Classification System

Draft Classification for:

Computer and Electronic Product Manufacturing

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industrial classification for these
industries.
The draft classification provides for the subsector, Computer and
Electronic Product Manufacturing. This subsector is further subdivided
into six industry groups and eight industries. The subsector will be
part of the Manufacturing sector of the classification.

A General Outline

The Computer and Electronic Product Manufacturing industries
produce computers, computer peripherals, communications equipment, and
similar electronic products, together with components for such
products. The treatment of this subsector in NAICS differs
substantially from past national classifications in all three
countries, and also from other international classifications.
First, in NAICS the computer and electronic product manufacturing
industries have been elevated to a separate subsector that brings
together in the classification the manufacture of electronic products
and their components. In previous national classification systems, and
in the International Standard Industrial Classification of All Economic
Activities (ISIC, Revision 3) of the United Nations, these industries
are placed in machinery industries or with electrical equipment.
Computer and electronic product manufacturing industries have been
elevated in the hierarchy of NAICS because of the economic importance
they have attained, because their rapid growth suggests that they will
become even more important in the economies of all three North American
countries in the future, and because their manufacturing processes are
fundamentally different from the manufacturing processes of other
machinery and electrical components with which they have been grouped
in the past, and are grouped in ISIC.
Computers, communications equipment, and other electronic devices
can of course be regarded as types of machines, which has been the view
embodied in past classification systems. However, in NAICS the
application of mechanical principles defines the Machinery subsector,
because it describes the production processes (gear cutting and so
forth) that must be used to manufacture machinery that functions on
mechanical principles. Mechanical principles are not significant in the
operation of computers and other electronic devices, and the production
of computers, communications equipment and other electronic devices is
not characterized by the processes that are used in the Machinery
subsector.
Instead, the design and use of integrated circuits and the
application

[[Page 26573]]

of highly specialized miniaturization technologies are common elements
in the production technologies of the Computer and Electronic Product
Manufacturing subsector. The production processes are in a constant
state of technological development, such that heavy research and
development expenditures are necessary to cope with rapid obsolescence
of tangible and intangible assets. The manufacture of these products is
grouped together because similar production processes are used.
A second substantive difference between NAICS and most other
classification systems involves the grouping itself. In NAICS, the
manufacture of integrated circuits and related electronic components is
placed in the same subsector as the manufacturing of computers,
communications equipment and other end products for which these
components are an essential part of the end-product technology.
Moreover, NAICS combines in the same subsector end products that have
different uses--for example, computers, communications equipment, and
audio equipment--but have similar and converging technologies.
Convergence of technology motivates the NAICS groupings.
Digitalization of sound recording, for example, causes both the medium
(the ``compact disk'') and the equipment to resemble the technologies
for recording, storing, transmitting and manipulating data.
Communications technology and equipment have been converging with
computer technology. Machines already exist that can send fax messages,
copy electronically, and print documents. Transmission technology may
take the form of a dedicated, separately-housed machine (end product),
or the same technology may be incorporated into a board mounted inside
a computer (in which case it is technically an electronic component);
thus, the component/end product distinction no longer justifies
separating electronic components in a separate part of the
classification system from electronic end products. Combining in the
same subsector the production of equipment designed for different end
uses, and also combining in the same subsector the components with the
end-use equipment, is justified by rapid convergence in the production
technologies and by the expected continued convergence of technology.
When technologically related components are in the same sector, it
makes it easier to adjust the classification for future changes,
without needing to redefine its basic structure. The creation of the
Computer and Electronic Product Manufacturing subsector will assist in
delineating new and emerging industries because the activities that
will serve as the probable sources of new industries--such as computer
manufacturing and communications equipment manufacturing, or computers
and audio equipment--are brought together. As new activities emerge,
they are less likely therefore to cross the subsector boundaries of the
classification.
In addition, the three countries put a priority in NAICS on the
delineation of industries engaged in the production of advanced
technologies. The creation of this subsector is a response to that
priority. It groups activities that are constantly developing and
applying new scientific and engineering knowledge.
Though the three countries' statistical agencies agree that the
growth of computer and electronic components in all three countries is
likely to be significant in the future, and that accordingly it merits
treatment as a subsector in NAICS, many differences currently exist in
the degrees of specialization and differentiation in the three
countries. The United States has more diversification and more
specialization in these high technology sectors than does either Canada
or Mexico. For this reason, it was necessary to specify NAICS 4-digit
industries in this sector at a relatively broad level of detail. By
setting up a forward-looking classification, it will be easier to
subdivide NAICS 4-digit industries in the future, as the sector expands
in all three countries, without requiring major shifts in the
classification system. This is especially important in view of the fact
that the technologies that are common across all of the industries in
this subsector may converge in the future as well as differentiate.
The Computer and Electronic Product Manufacturing subsector is
subdivided into six industry groups. Computer and Peripheral Equipment
Manufacturing comprises the production of computers and associated
products such as storage devices and monitors. Communication Equipment
Manufacturing includes the manufacture of telephone apparatus and radio
and television studio and broadcast equipment. Audio and Video
Equipment Manufacturing covers household and commercial radios,
televisions, video equipment and similar articles. Semiconductor and
Electronic Component Manufacturing includes the manufacture of a broad
range of components used as parts in this subsector. The loading of
circuit boards is classified here. Navigational, Measuring, Medical and
Control Instrument Manufacturing includes the manufacture of such
products as radar and sonar equipment and industrial process control
equipment.
The sixth industry group, Manufacturing and Reproduction of
Magnetic and Optical Media, includes the production of media such as
video tapes and CD-ROMs, and the mass duplication of these media. It
should be noted that the manufacture of packaged software is placed in
this sector; however, the publishing of software, and its distribution
electronically, is placed in the new NAICS Information sector, to be
published separately, while traditional custom applications of software
to client specification are in the Professional, Scientific and
Technical Services subsector. These changes were made to represent
better the different ways that software is produced and distributed.
Sources within the industry and without have noted that the attempt, in
past classification systems, to locate all software in a single portion
of the classification system (the Services sector, or the Manufacturing
sector) obliterates useful distinctions in software production and
distribution, and tends, whatever the decision, to become rapidly
obsolete as the nature and use of software changes. The NAICS structure
is intended to facilitate the production of data on such changes,
rather than obliterating them.
Consideration was given to subdividing this industry. Two
possibilities were considered. Establishments could be distinguished
based on the type of media, for example, CD-ROMs and diskettes or on
the type of application, for example software and entertainment. This
was not done for two reasons. First, the production process is often
the same for a particular medium regardless of the application. For
example, a blank CD-ROM can be used for recording music or for
recording software. The format used for recording music CD-ROMs is also
commonly used in multimedia software applications. Secondly, some
establishments combine the production of the possible subdivisions.
Establishments exist that produce both diskettes and CD-ROMs. These
technological and establishment organization issues precluded a
subdivision of the industry for NAICS. It is also the case that any
subdivisions would be very small in Canada and Mexico.

[[Page 26574]]

Limitations and Constraints of the Classification

In the Computer and Electronic Product Manufacturing subsector,
most activities that were identified in one country exist in the
others. However, as noted above, often an activity is not economically
significant to the same degree in all countries. For example, a broad
NAICS Computer and Peripheral Equipment Manufacturing industry was
created because in Canada and Mexico establishments that primarily
manufacture computers also produce peripherals to a significant degree.
In Canada, a computer manufacturing industry would have a
specialization ratio of only 70%. In addition, there is evidence that
the lines between computer and peripheral equipment manufacturing are
becoming less precise even in the U.S. The U.S. specialization ratio
for computer manufacturing declined from 87% to 82% between 1987 and
1992. As another example, a relatively broad NAICS industry was created
for Semiconductor and Electronic Component Manufacturing, partly
because any possible subdivisions are small or confidential in Canada
and Mexico.
Each country may publish additional national industries that
comprise subdivisions of NAICS industries, to present data for
activities that are nationally significant. Though these national
industries are also constrained by the desire to preserve time series
comparability within each country's statistics, so far as possible, the
three countries are committed to increased international comparability
of industrial statistics in these high technology sectors, as
development in the three economies makes it feasible.
Bringing electronic components and end products together in the
classification has inevitably produced some anomalies at the boundary
of the sector. For example, most of the traditional instrument
industries have been located in this subsector because electronic
measuring devices and instruments have rapidly displaced mechanical and
electrical types that served similar functions. It was, however, not
practical to split off all of the traditional forms of instruments,
partly for the sake of preserving time series, partly because the
establishments themselves have shifted from the old to the new
technology, and partly because the rapid eclipse of some traditional
instrument types may mean that an industry or industries for mechanical
instrument manufacturing (in Miscellaneous Manufacturing) would soon
become obsolete, even if it were established in NAICS. As a
consequence, however, some activities that are neither electronic nor
``high tech'' (watch springs, for example) appear anomalously in this
subsector.
For those users requiring detailed commodity information, each
country will publish information on the products of these industries.
Efforts are also underway to harmonize the commodity classifications to
allow for greater comparability of these statistics.

Relationship to ISIC

The Computer and Electronic Product Manufacturing subsector does
not closely match any existing Division of the current International
Standard Industrial Classification of all Economic Activities (ISIC,
Revision 3) of the United Nations. Computers and peripherals are
classified in ISIC Division 30, Manufacture of Office, Accounting and
Computing Machinery. Communications equipment, audio and video
equipment and most electronic components are in ISIC Division 32,
Manufacture of Radio, Television and Communication Equipment and
Apparatus. Navigational, measuring and controlling equipment are
included in ISIC Division 33, Manufacture of Medical, Precision and
Optical Instruments, Watches and Clocks. Other activities in this
subsector are classified in three additional ISIC Divisions.
However, of the eight NAICS 4-digit industries in this subsector,
six of them are each contained entirely within a single ISIC Division.
The other two NAICS industries cross two ISIC Divisions: Semiconductor
and Electronic Component Manufacturing is largely included in ISIC
Division 32, but includes the manufacture of electronic coils,
transformers, connectors and switches that are classified in ISIC
Division 31, Manufacture of Electrical Machinery and Apparatus, NEC.
Manufacturing and Reproduction of Magnetic and Optical Media is split
between ISIC Division 24, Manufacture of Chemicals and Chemical
Products (the manufacture of media) and ISIC Division 22, Publishing,
Printing and Reproduction of Recorded Media (mass duplication); in
North America, these activities take place in the same establishments,
so they are combined in NAICS.
Most of ISIC Division 32 is included in this subsector. However,
the other ISIC Divisions (31, 24 and 22) linked to the Computer and
Electronic Component Manufacturing subsector all have significant
activities that are classified elsewhere in NAICS.

Some Changes to the National Classifications

For all countries, the creation of the Computer and Electronic
Product Manufacturing subsector represents a significant change to the
structure of the current national classifications.
For Canada, the subsector is largely the sum of three industry
groups in Electrical and Electronic Products Industries (CSIC 334, 335
and 336) and instruments now in Other Manufacturing Industries (part of
391). The amount of detail of this NAICS subsector is less than that
contained in the Canadian classification.
For Mexico, the Computer and Electronic Product Manufacturing
subsector has coverage similar to the Mexican classification's
Manufacture and Assembly of Electronic Radio, Television,
Communications and Medical Equipment (CMAP 3832), combined with the
computers and peripherals activities from Manufacture and Assembly of
Office Calculating and Data Processing Machines (3823). The amount of
detail of this NAICS subsector is similar to that of these areas of the
Mexican classification.
For the United States, this subsector includes activities from
three major groups. Computers and peripherals are now in Computer and
Office Equipment, 1987 Industry Group 357; instruments are now a large
part of 1987 SIC Major Group 38, Measuring, Analyzing, and Controlling
Instruments; Photographic, Medical and Optical Goods; Watches and
Clocks; and the remaining NAICS activities in this subsector are
largely classified in 1987 Major Group 36, Electronic and Other
Electric Equipment (especially 365, 366 and 367). NAICS provides much
less industry detail than the 1987 U.S. SIC. However, the U.S. national
industries will provide similar detail below the NAICS industry level.

Achievement of Objectives

[[Page 26575]]

that of computers, with assembly of parts being important, while the
manufacture of electronic components is driven by miniaturization
techniques.
The industries have high specialization ratios, and they are
economically significant. Some are much larger than others, but this
was necessitated by the considerations discussed above under
Limitations and Constraints of the Classification. The classification
is still suitable for sampling, data-publishing and other aspects of
survey operations. Finally, while disruptions to time series exist,
they are mostly at the level of the aggregation structure. The
statistical agencies can develop statistical ``links'' to enable the
re-tabulation of time series on the new NAICS classification structure.
The classification achieves comparability for the three
participating countries. Based on existing data, all three countries
expect to be able to publish data regularly at the industry (4-digit)
level of the structure. All countries agree on the detailed definitions
of the industries.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the NAICS industry subsector
presented in Part III, Section A--Attachment 1, contain less detail
than is currently in the U.S. SIC system, and less detail than is
required to meet important analytical requirements in the U.S. The
three country agreement on NAICS envisions that each country may
develop national detailed industries below the NAICS industry level, so
long as the national detail can be aggregated to the NAICS
classification, thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS
subsector covered in Part III of this notice. For cases where no 5-
digit detail is shown, the ECPC is proposing that the NAICS 4-digit
industries will also represent the most detailed U.S. industries.

Table 1
----------------------------------------------------------------------------------------------------------------
1987
1997 NAICS & U.S. description Status code SIC 1987 SIC description
code
----------------------------------------------------------------------------------------------------------------
XX................. Computer and Electronic
Product Manufacturing:
XXX................ Computer and Peripheral
Equipment Manufacturing:
XXXX............... Computer and Peripheral
Equipment Manufacturing:
XXXXX.............. Electronic Computer E 3571 Electronic Computers.
Manufacturing.
XXXXX.............. Computer Storage Device E 3572 Computer Storage Devices.
Manufacturing.
XXXXX.............. Computer Terminal E 3575 Computer Terminals.
Manufacturing.
XXXXX.............. Other Computer Peripheral R 3577 Computer Peripheral Equipment,
Equipment Manufacturing. NEC.
*3578 Calculating and Accounting
Machines, Except Electronic.
Computers (point of sale
terminals and fund transfer
devices).
*3699 Electrical Machinery Equipment
and Supplies, NEC (bar code
scanners).
XXX................ Communication Equipment
Manufacturing:
XXXX............... Telephone Apparatus R *3661 Telephone and Telegraph Apparatus
Manufacturing. (except telephone transformers
and external PC consumer
modems).
XXXX............... Broadcast and Studio R 3663 Radio and Television Broadcasting
Equipment for Radio, TV, and Communication Equipment.
and Cable Manufacturing.
*3679 Electronic Components, NEC
(communication equipment).
XXXX............... Other Communication E 3669 Communications Equipment, NEC.
Equipment Manufacturing.
XXX................ Audio and Video Equipment
Manufacturing:
XXXX............... Audio and Video Equipment E 3651 Household Audio and Video
Manufacturing. Equipment.
XXX................ Semiconductor and
Electronic Component
Manufacturing:
XXXX............... Semiconductor and
Electronic Component
Manufacturing:
XXXXX.............. Electron Tube E 3671 Electron Tubes.
Manufacturing.
XXXXX.............. Printed Circuit Board E 3672 Printed Circuit Boards.
Manufacturing.
XXXXX.............. Semiconductor and Related E 3674 Semiconductors and Related
Device Manufacturing. Devices.
XXXXX.............. Electronic Capacitor E 3675 Electronic Capacitors.
Manufacturing.
XXXXX.............. Electronic Resistor E 3676 Electronic Resistors.
Manufacturing.
XXXXX.............. Electronic Coil, R *3661 Telephone and Telegraph Apparatus
Transformer, and Other (telephone transformers).
Inductor. Manufacturing.
3677 Electronic Coils, Transformers,
and Other Inductors.
*3825 Instruments for Measuring and
Testing of Electricity and
Electrical Signals (portable
instrument transformers).
XXXXX.............. Electronic Connector E 3678 Electronic Connectors.
Manufacturing.
XXXXX.............. Other Electronic R *3661 Telephone and Telegraph Apparatus
Component Manufacturing. (external PC consumer modems).
*3679 Electronic Components, NEC (other
electronic components including
loaded printed circuit boards).
XXX................ Navigational, Measuring,
Medical, and Control
Instrument Manufacturing:
XXXX............... Navigational, Measuring,
Medical, and Control
Instrument Manufacturing:

[[Page 26576]]

XXXXX.............. Search, Detection, E 3812 Search, Detection, Navigation,
Navigation, Guidance, Guidance, Aeronautical, and
Aeronautical, and Nautical Systems and
Nautical System and Instruments.
Instrument Manufacturing.
XXXXX.............. Automatic Control for E 3822 Automatic Controls for Regulating
Regulating Residential Residential and Commercial
and Commercial Environments and Appliances.
Environment and
Appliance Manufacturing.
XXXXX.............. Industrial Instrument for E 3823 Industrial Instruments for
Measurement, Display, Measurement, Display, and
and Control of Process Control of Process Variables;
Variables, and Related and Related Products.
Products.
XXXXX.............. Totalizing Fluid Meter E 3824 Totalizing Fluid Meters and
and Counting Device Counting Devices.
Manufacturing.
XXXXX.............. Instruments for Measuring R *3825 Instruments for Measuring and
and Testing of Testing of Electricity and
Electricity and Electrical Signals (except
Electrical Signal portable instrument
Manufacturing. transformers).
XXXXX.............. Analytical Instrument E 3826 Laboratory Analytical
Manufacturing. Instruments.
XXXXX.............. Other Measuring and R *3829 Measuring and Controlling
Controlling Device Devices, NEC (except medical
Manufacturing. thermometers).
XXXXX.............. Watch, Clock, and Part R *3495 Wire Springs (clock and watch
Manufacturing. springs).
*3579 Office Machines, NEC (time clocks
and other time recording
devices).
3873 Watches, Clocks, Clockwork
Operated Devices, and Parts.
XXXXX.............. X-Ray Apparatus and Tubes E 3844 X-Ray Apparatus and Tubes and
and Related Irradiation Related Irradiation Apparatus.
Apparatus.
XXXXX.............. Electromedical and R *3842 Orthopedic, Prosthetic, and
Electrotherapeutic Surgical Appliances and Supplies
Apparatus. (electronic hearing aids).
3845 Electromedical and
Electrotherapeutic Apparatus.
XXX................ Manufacturing and
Reproduction of Magnetic
and Optical Media:
XXXX............... Manufacturing and
Reproduction of Magnetic
and Optical Media:
XXXXX.............. Reproduction of Software. R *7372 Prepackaged Software
(reproduction of software).
XXXXX.............. Prerecorded Compact Disk, N *3652 Phonograph Records and
Except Software, Tape, Prerecorded Audio Tapes and
and Record Manufacturing. Disks (reproduction of all other
media except video).
*7819 Services Allied to Motion Picture
Production (Reproduction of
video).
XXXXX.............. Magnetic and Optical E 3695 Magnetic and Optical Recording
Recording Media Media.
Manufacturing.
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing; N--new industry; R--revised industry; and * means
``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

[[Page 26577]]

Reproduction of All Other Prerecorded Compact Disk, Tape and
Media Except Video. Record Manufacturing (pt).
External PC Consumer Modems... Other Electronic Component
Manufacturing (pt).
Telephone Transformers........ Electronic Coil, Transformer, and
Other Inductor Manufacturing (pt)
(Included in Electrical Equipment,
Appliance and Component
Manufacturing subsector).
Telephone and Telegraph Telephone Apparatus Manufacturing.
Apparatus, Except Telephone
Transformers and Consumer
External Modems.
3663.................................... Radio and Television Broadcast and Studio Equipment for
Broadcasting and Communication Radio, TV, and Cable (pt)
Equipment. Manufacturing.
3669.................................... Communications Equipment, NEC... Other Communication Equipment
Manufacturing.
3671.................................... Electron Tubes.................. Electron Tube Manufacturing.
3672.................................... Printed Circuit Boards.......... Printed Circuit Board Manufacturing.
3674.................................... Semiconductors and Related Semiconductor and Related Device
Devices. Manufacturing.
3675.................................... Electronic Capacitors........... Electronic Capacitor Manufacturing.
3676.................................... Electronic Resistors............ Electronic Resistor Manufacturing.
3677.................................... Electronic Coils, Transformers, Electronic Coil, Transformer, and
and Other Inductors. Other Inductor Manufacturing (pt).
3678.................................... Electronic Connectors........... Electronic Connector Manufacturing.
3679.................................... Electronic Components, NEC:
Communication Equipment....... Broadcast and Studio Equipment for
Radio, TV and Cable Manufacturing
(pt).
Electronic Control Modular Electrical Equipment for Internal
Chips for Motor Vehicles. Combustion Engine Manufacturing
(pt) (Included in Transportation
Equipment Manufacturing subsector).
Other Electronic Components Other Electronic Component
Including Loaded PC Boards. Manufacturing (pt).
3695.................................... Magnetic and Optical Recording Magnetic and Optical Recording Media
Media. Manufacturing,
[email protected] Electrical Machinery, Equipment,
and Supplies, NEC:
Bar Code Scanners............. Other Computer Peripheral Equipment
Manufacturing (pt).
Christmas Tree Lighting Sets Other Lighting Equipment
and Electric Insect Lamps. Manufacturing (pt) (To Be Included
in Electrical Equipment, Appliance
and Component Manufacturing
subsector).
Electric Outboard Motor;...... Other Engine Manufacturing (pt)
(Included in Machinery
Manufacturing subsector).
Lasers........................ Classified according to function.
Other Electrical Machinery, Other Electrical Industrial
Equipment, and Supplies. Apparatus Manufacturing (pt)
(Included in Electrical Equipment,
Appliance, and Component
Manufacturing subsector).
3812.................................... Search, Detection, Navigation, Search, Detection, Navigation,
Guidance, Aeronautical, and Guidance, Aeronautical, and
Nautical Systems and Nautical System and Instrument
Instruments. Manufacturing.
3822.................................... Automatic Controls for Automatic Control for Regulating
Regulating Residential and Residential and Commercial
Commercial Environment and Environment and Appliance
Appliances. Manufacturing.
3823.................................... Industrial Instruments for Industrial Instrument for
Measurement, Display, and Measurement, Display, and Control
Control of Process Variables; of Process Variables; and Related
and Related Products. Product Manufacturing.
3824.................................... Totalizing Fluid Meters and Totalizing Fluid Meter and Counting
Counting Devices. Device Manufacturing.
3825.................................... Instruments for Measuring and
Testing of Electricity and
Electrical Signals:
Portable Instrument Electronic Coil, Transformer, and
Transformers. Other Inductor Manufacturing (pt).
Except Portable Instrument Instruments for Measuring and
Transformers. Testing of Electricity and
Electrical Signal Manufacturing.
3826.................................... Laboratory Analytical Analytical Instrument Manufacturing.
Instruments.
3829.................................... Measuring and Controlling
Devices, NEC:
Medical Thermometers.......... Surgical Appliance and Supply
Manufacturing (pt) (Included in
Miscellaneous Manufacturing
Subsector).
Except Medical Thermometers... Other Measuring and Controlling
Device Manufacturing.
[email protected] Orthopedic, Prosthetic, and
Surgical Appliances and
Supplies:
Electronic Hearing Aids....... Electromedical and
Electrotherapeutic Apparatus (pt.).
Other......................... Surgical Appliance and Supply
Manufacturing (pt.) (To be Included
in Miscellaneous Manufacturing
subsector).
3844.................................... X-Ray Apparatus and Tubes and X-Ray Apparatus and Tubes and
Related Irradiation Apparatus. Related Irradiation Apparatus.
3845.................................... Electromedical and Electromedical and
Electrotherapeutic Apparatus. Electrotherapeutic Apparatus (pt.).
3873.................................... Watches, Clocks, Clockwork Watch, Clock, and Part Manufacturing
Operated Devices and Parts. (pt).
[email protected] Prepackaged Software:
Reproduction of Software...... Reproduction of Software.

[[Page 26578]]

Other......................... (Included in Information subsector).
[email protected] Services Allied to Motion
Picture Production
Reproduction of Video......... Prerecorded Compact Disk, Tape and
Record Manufacturing (pt).
Other......................... (Included in Services subsector).
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of'', @ means time series break has been created that is greater than 3% of
the 1992 value of shipments for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere
Classified.

Description of Changes to the U.S. System

SIC 3571, Electronic Computers
SIC 3572, Computer Storage Devices
SIC 3575, Computer Terminals
SIC 3577, Computer Peripheral Equipment, NEC

The following twelve complete industries were transferred into this
subsector from 1987 Major Group 36, Electronic and Other Electrical
Equipment and Components, Except Computer Equipment:

SIC 3651, Household Audio and Video Equipment
SIC 3661, Telephone and Telegraph Apparatus
SIC 3663, Radio and Television Broadcasting and Communication Equipment
SIC 3669, Communications Equipment, NEC
SIC 3671, Electron Tubes
SIC 3672, Printed Circuit Boards
SIC 3674, Semiconductors and Related Devices
SIC 3675, Electronic Capacitors
SIC 3676, Electronic Resistors
SIC 3677, Electronic Coils, Transformers, and Other Inductors
SIC 3678, Electronic Connectors
SIC 3695, Magnetic and Optical Recording Media

Eight complete industries were transferred into this subsector from
1987 Major Group 38, Measuring, Analyzing and Controlling Instruments;
Photographic, Medical and Optical Goods; Watches and Clocks. Those
industries are:

SIC 3812, Search, Detection, Navigation, Guidance, Aeronautical, and
Nautical Systems and Instruments
SIC 3822, Automatic Controls for Regulating Residential and Commercial
Environments and Appliances
SIC 3823, Industrial Instruments for Measurement, Display, and Control
of Process Variables; and Related Products
SIC 3824, Totalizing Fluid Meters and Counting Devices
SIC 3826, Laboratory Analytical Instruments
SIC 3844, X-Ray Apparatus and Tubes and Related Irradiation Apparatus
SIC 3845, Electromedical and Electrotherapeutic Apparatus
SIC 3873, Watches, Clocks, Clockwork Operated Devices, and Parts

These 34 complete industries were transferred into this new
subsector for one or more of the following reasons: (1) the changes
were in response to public requests; (2) the changes were supported by
similar processes; and (3) the changes produced international
comparability.
One industry, SIC 3825, Instruments for Measuring and Testing of
Electricity and Electrical Signals, moved in its entirety to this
subsector, but was split; portable instrument transformers to NAICS
industry, Electronic Coil, Transformer, and other Inductor
Manufacturing, and the rest going to NAICS industry, Instruments for
Measuring and Testing of Electricity and Electrical Signal
Manufacturing.
Two new industries were formed from very similar activities that
were formerly partly included in manufacturing and partly in services.
Prerecorded Compact Disk, Except Software, Tape, and Record
Manufacturing was formed from part of 1987 SIC 3652, Phonograph Records
and Prerecorded Audio Tapes and Disks, and from part of 1987 SIC 7819,
Services Allied to Motion Picture Production.
Reproduction of Software was created from part of 1987 SIC 7372,
Prepackaged Software. The ECPC recognizes that some establishments
combine the production of prepackaged software and the production of
other prerecorded compact disks, tapes, and records and that the
production process is often the same. Therefore, it may be necessary to
combine these activities into one industry. The ECPC requests specific
comments on this proposal. (The publishing portions of these three 1987
SIC industries have been moved to the new NAICS Information sector.)
These changes are made in response to an industry proposal, to improve
international comparability, and to recognize that the production of
prepackaged software is a manufacturing, not a services, activity.
Eleven activities were transferred into 1997 Computer and
Electronic Product Manufacturing.
Point of sales terminals and fund transfer devices were transferred
from 1987 SIC 3578, Calculating and Accounting Machines, Except
Electronic Computers, into Other Computer Peripheral Equipment
Manufacturing, in response to a proposal from the industry and to
create a better production-oriented industry.
Time clocks and other time recording devices were transferred from
1987 SIC 3579, Office Machines, NEC, into Watch, Clock and Part
Manufacturing.

[[Page 26579]]

This improves international comparability and is supported by
similarity in production processes.
Phonograph records and prerecorded audio tapes and disks, except
record publishing, were transferred from 1987 SIC 3652, Phonograph
Records and Prerecorded Audio Tapes and Disks, into Prerecorded Compact
Disk, Tape, and Record Manufacturing. This improves international
comparability and is supported by similarity in production processes.
Telephone and telegraph apparatus, except telephone transformers
and consumer external PC modems, were transferred from 1987 SIC 3661,
Telephone and Telegraph Apparatus, into Telephone Apparatus
Manufacturing. This improves international comparability and is
supported by similarity in production processes.
The communication equipment formerly in 1987 SIC 3679, Electronic
Components, NEC, was transferred into Broadcast and Studio Equipment
Manufacturing for Radio, TV, and Cable. This improves international
comparability and is supported by similarity in production processes.
Other electronic components, including loaded printed circuit
boards, were transferred from 1987 SIC 3679, Electronic Components,
NEC, into Other Electronic Component Manufacturing. This improves
international comparability and is supported by similarity in
production processes.
Other measuring and controlling devices, except medical
thermometers, were transferred from 1987 SIC 3829, Measuring and
Controlling Devices, NEC, into Other Measuring and Controlling Device
Manufacturing. This improves international comparability and is
supported by similarity in production processes.
Bar code scanners were transferred from 1987 SIC 3699, Electrical
Machinery, Equipment and Supplies, NEC, into Other Computer Peripheral
Equipment Manufacturing. This improves international comparability and
is supported by similarity in production processes.
Reproduction of software was transferred from 1987 SIC 7372,
Prepackaged Software, into Reproduction of Software. This improves
international comparability and is supported by similarity in
production processes.
Reproduction of video was transferred from 1987 SIC 7819, Services
Allied to Motion Picture Production, into Magnetic and Optical Media
Manufacturing. This improves international comparability and is
supported by similarity in production processes.
Clock and watch springs were transferred from 1987 SIC 3495, Wire
Springs, into Watch, Clock, and Part Manufacturing. This improves
international comparability with Mexico, Canada, and the ISIC.
There are 29 industries in this new subsector. For time series
linkage 19 of the 29 1997 industries are comparable within three
percent of the old 1987 industries.

Part IV--Proposed New Industry Structure for Furniture Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 14

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following subsector:

Furniture Manufacturing

Attachment 1--NAICS Structure

XX Furniture Manufacturing
XXX Furniture Manufacturing
XXXX Mattress Manufacturing
XXXX Blind and Shade Manufacturing
XXXX Wood Furniture Manufacturing
XXXX Metal Furniture Manufacturing
XXXX Other Furniture Manufacturing

Attachment 2--North American Industry Classification System

Draft Classification for:

Furniture Manufacturing

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industrial classification for these
industries.
The draft classification applies to the subsector, Furniture
Manufacturing. This subsector contains one industry group and five
industries. The subsector will be part of the Manufacturing sector of
the classification.

A General Outline

Furniture Manufacturing includes establishments that produce
articles such as chairs, beds, mattresses, dressers, tables and desks
for human comfort, convenience and utility. Processes used in the
manufacture of furniture include the cutting, bending, molding,
laminating and assembly of such materials as wood, metal, glass,
plastics, and rattan. In addition, design and fashion trends play an
important part in the production of furniture. The production process
for furniture is not solely bending metal, cutting and shaping wood, or
extruding and molding plastic. The integrated design of the article for
esthetic qualities, and to carry out its function efficiently, is also
a major part of the process of manufacturing furniture, though design
services are also sometimes purchased by furniture manufacturers from
industrial designers.
Furniture manufacturing establishments tend to specialize in making
articles primarily from one material, such as wood or metal, because
the production processes required to make a wooden table, for example,
are quite different from the production processes for metal tables.
However, it is unusual to make furniture exclusively from a single
input. A wooden table might have metal brackets and a wooden chair a
fabric or plastic seat.
Some of the processes used in furniture manufacturing are similar
to processes that are used in other segments of manufacturing. For
example, cutting and assembly occurs in the production of wood trusses
that are classified in the Wood Product Manufacturing, Except Furniture
subsector. However, the multiple processes that distinguish wood
furniture manufacturing from wood product manufacturing warrant
inclusion of wooden furniture manufacturing in the Furniture
Manufacturing subsector. Metal furniture manufacturing uses techniques
that are also employed in the manufacturing of roll formed products in
the Fabricated Metal Product Manufacturing sector. The molding

[[Page 26580]]

process for plastic furniture is similar to the molding of other
plastic products. However, plastic furniture producing establishments
tend to specialize in furniture.
Though the production processes, products, and industry practices
in furniture manufacturing are relatively mature ones, the existing
classification structures in the three North American countries
differed so extensively that substantial restructuring in all three
countries was required in order to achieve international comparability.
Even so, international comparability could be achieved only at a
relatively high level of aggregation (for example, wood furniture
manufacturing). Barriers to further expansion in NAICS detail are
discussed in the following section, and additional information may be
provided by countries in discussions of their own national industries.

Limitations and Constraints of the Classification

In the Furniture Manufacturing industries, most activities that
were identified in one country exist in the others. However, often an
activity is not economically significant to the same degree in all
countries. For example, wood office furniture manufacturing in Canada
is too small to publish, and wood store furniture manufacturing is too
small to publish in both Canada and Mexico.
It is not always possible to separately identify production process
industries for end use categories. For example, United States
manufacturers tend to specialize in household furniture or office
furniture because differences in uses require differences in
production. However, in Mexico household and office furniture are often
produced in the same establishment, and some blurring of the household/
office distinction is apparent even in the U.S.
For these reasons, only broad categories for wood and metal
furniture and furniture made from other materials were created for
NAICS. Each country will publish additional categories that comprise
subdivisions of NAICS industries to present data for activities that
are nationally significant.
For those users requiring detailed commodity information, each
country will publish information on the products of these industries.
Efforts are also underway to harmonize the commodity classifications to
allow for greater comparability of these statistics.

Relationship to ISIC

Most 4-digit NAICS industries in this subsector are contained
within Class 3610, Manufacture of Furniture, of the current
International Standard Industrial Classification of all Economic
Activities (ISIC, Revision 3) of the United Nations. A notable
exception is the manufacture of blinds and shades that ISIC classifies
into different ISIC divisions by type of input material. In North
America, production of blinds and shades of multiple materials occurs
in a single establishment, so it is neither possible nor desirable to
separate them by type of material in the classification system. For
this reason, both Mexico and the United States currently classify all
blind and shade manufacturing in a single industry. Other differences
between NAICS and ISIC include the classification of wood and metal
partitions and serving carts, which are placed in the respective wood
or metal products divisions of ISIC. In NAICS, these manufacturing
activities are placed in Furniture Manufacturing since the
manufacturing processes are essentially identical to those used for
furniture.
In spite of these differences, this NAICS subsector is
substantially the same as ISIC Class 3610, because most of the
production in this subsector occurs in the industries that are
compatible with this ISIC class.

Some Changes to the National Classifications

For Canada, the NAICS Furniture Manufacturing subsector
restructures the existing classification from an end use classification
to a production process and input form, i.e., into wood, metal, and
other furniture industries. In the case of wood furniture, the Canadian
classification was structured both by input raw material (wood) and by
end use, i.e., wooden household and upholstered household furniture.
For furniture of metal and other materials, Canadian industries were
restructured to the NAICS pattern. Other Canadian changes include the
movement of wooden kitchen cabinets and bathroom vanities from the Wood
Industries major group to this subsector, and the grouping of all kinds
of shades, blinds and window hardware into a single NAICS industry.
For Mexico, the significant change is one of concept. Formerly,
Mexico had no separately identified furniture subsector. Thus, this
subsector will be entirely new. Changes at the industry level are
relatively small, as the current structure in Mexico classifies wood
furniture in the wood product manufacturing industries, metal furniture
in the fabricated metal manufacturing industries, etc.
For the United States, changes parallel those in Canada. The
existing U.S. structure classifies furniture by both inputs and end use
in some detail. Like Canada, the U.S. structure has considerable detail
for wood furniture, but unlike Canada, the U.S. also has substantial
detail for metal furniture. A considerable amount of internal
restructuring was required to achieve the NAICS design. However, the
U.S. will retain substantial national industry detail below the level
of the NAICS Furniture Manufacturing industries, e.g., wood household
furniture is distinguished from wood office furniture at the 5-digit
national detail level.
Another important change for the United States is the inclusion of
custom furniture in this sector. The manufacture of custom furniture
was formerly classified in the retail sector. The change was made to
agree with the Canadian and Mexican classification of the activity
because the Canadian and Mexican treatment meets the production-
oriented criterion for NAICS. Other changes include the movement of
wood kitchen cabinets and wooden chair frames from the 1987 SIC Lumber
and Wood Products, Except Furniture major group because the production
processes are essentially identical to those for furniture.

Achievement of Objectives

[[Page 26581]]

digit) level and structures of the classification are balanced in size.
This enhances the classification's suitability for sampling and other
aspects of survey operations. Finally, though disruptions to time
series exist, the major changes are well identified and can be taken
into account in linking time series.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the NAICS industry subsector
presented in Part IV, Section A--Attachment 1, contain less detail than
is currently in the U.S. SIC system, and less detail than is required
to meet important analytical requirements in the U.S. The three country
agreement on NAICS envisions that each country may develop national
detailed industries below the NAICS industry level, so long as the
national detail can be aggregated to the NAICS classification, thus
assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS
industry subsector covered in Part IV of this notice. For cases where
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

Table 1
----------------------------------------------------------------------------------------------------------------
1987
1997 NAICS and U.S. Status code SIC 1987 SIC description
description code
----------------------------------------------------------------------------------------------------------------
XX................. Furniture Manufacturing:
XXX................ Furniture Manufacturing:
XXXX............... Mattress Manufacturing.... E 2515 Mattresses and Bedsprings.
XXXX............... Blind and Shade E 2591 Drapery Hardware and Blinds and
Manufacturing Shades.
XXXX............... Wood Furniture
Manufacturing:
XXXXX.............. Wood Household Furniture R *2426 Hardwood Dimension and Flooring
Manufacturing, Except Mills (wooden chair frames and
Upholstered. chair seats).
................ *2499 Wood Products, NEC (wood laundry
hampers).
................ 2511 Wood Household Furniture, Except
Upholstered.
................ 2517 Wood TV and, Radio Cabinets.
................ *5712 Furniture Stores (custom made
furniture except cabinets).
XXXXX.............. Wood Kitchen Cabinet R 2434 Wood Kitchen Cabinets.
Manufacturing
................ *5712 Furniture Stores (custom wood
cabinets).
XXXXX.............. Upholstered Wood E 2512 Wood Household Furniture,
Household Furniture Upholstered.
Manufacturing
XXXXX.............. Wood Office and Public R *2426 Hardwood Dimension and Flooring
Building Furniture Mills (office chair frames and
Manufacturing. chair seats).
................ *2521 Wood Office Furniture.
................ *2531 Public Building and Related
Furniture (wood furniture for
public buildings).
................ *2599 Furniture and Fixtures, NEC (wood
industrial work benches and
stools, and other wood furniture
such as ship furniture).
................ *3952 Lead Pencils, Crayons, and
Artists' Materials (wood
drafting tables and boards).
XXXXX.............. Wood Office and Store R *2541 Wood Office and Store Fixtures,
Fixture, Partition, Partitions, Shelving, and
Shelving, and Locker Lockers (except custom
Manufacturing. architectural woodwork,
millwork, and fixtures).
XXXXX.............. Custom Architectural N *2541 Wood Office and Store Fixtures,
Woodwork, Millwork, and Partitions, Shelving, and
Fixtures. Lockers (architectural woodwork,
millwork, and fixtures).
XXXX............... Metal Furniture
Manufacturing:
XXXXX.............. Metal Household Furniture R 2514 Metal Household Furniture.
Manufacturing.
................ *3499 Fabricated Metal Products, NEC
(metal household frames and
furniture parts).
XXXXX.............. Metal Office and Public R *2522 Office Furniture, Except Wood
Building Furniture (metal office furniture).
Manufacturing.
................ *2531 Public Building and Related
Furniture (metal furniture for
public buildings).
................ *2599 Furniture and Fixtures, NEC
(metal industrial work benches
and stools, and other metal
furniture such as ship
furniture).
................ *3499 Fabricated Metal Products, NEC
(metal frames and furniture
parts).
................ *3952 Lead Pencils, Crayons, and
Artists' Materials (metal
drafting tables and boards).
................ *3999 Manufacturing Industries, NEC
(barber and beauty chairs).
XXXXX.............. Metal Office and Store R *2542 Office and Store Fixtures,
Fixture, Partition, Partitions, Shelving and
Shelving and Locker Lockers, Except Wood (metal
Manufacturing. office and store fixtures,
partitions, shelving, and
lockers).
XXXX............... Other Furniture R *2499 Wood Products, NEC (laundry
Manufacturing. hampers made from rattan, reed
or willow)
................ 2519 Household Furniture, NEC.
................ *2522 Office Furniture, Except Wood
(office furniture not made of
wood or metal).
................ *2531 Public Building and Related
Furniture (other furniture not
made of wood or metal for public
buildings).

[[Page 26582]]

................ *2542 Office and Store Fixtures,
Partitions, Shelving and
Lockers, Except Wood (office and
store fixtures, partitions,
shelving, and lockers not made
of metal).
................ *2599 Furniture and Fixtures, NEC
(other furniture or fixtures).
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and
* means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

Table 2
----------------------------------------------------------------------------------------------------------------
1987 SIC code 1987 SIC description 1997 U.S. description
----------------------------------------------------------------------------------------------------------------
2426.................................... Hardwood Dimension and Flooring
Mills:
Hardwood Flooring............. Millwork Manufacturing, Including
Flooring (pt) (Included in the Wood
Product Manufacturing, Except
Furniture subsector).
Stock and Turnings........... Other Wood Product Manufacturing
(pt) (Included in the Wood Product
Manufacturing, Except Furniture
subsector).
Office Chair Frames and Chair Wood Office and Public Building
Seats. Furniture Manufacturing (pt).
Chair Frames for Wood Household Furniture
Nonupholstered Furniture Manufacturing, Except Upholstered
(Household). (pt).
Chair Frames for Upholstered Upholstered Wood Household Furniture
Furniture (Household). Manufacturing (pt).
Hardwood Dimension Except Hardwood Dimension Mills (Included
Flooring. in the Wood Product Manufacturing,
Except Furniture subsector).
2434.................................... Wood Kitchen Cabinets........... Wood Kitchen Cabinet Manufacturing
(pt).
2499.................................... Wood Products, NEC:
Wood Tubs and Vats, Jewelry Other Wood Container Manufacturing
and Cigar Boxes. (pt) (Included in the Wood Product
Manufacturing, Except Furniture
subsector).
Wood Laundry Hampers.......... Wood Household Furniture
Manufacturing, Except Upholstered
(pt).
Laundry Hampers Made from Other Furniture Manufacturing (pt).
Rattan, Reed or Willow.
[email protected] Wood Household Furniture, Except Wood Household Furniture
Upholstered. Manufacturing, Except Upholstered
(pt).
2512.................................... Wood Household Furniture, Upholstered Wood Household Furniture
Upholstered. Manufacturing.
2514.................................... Metal Household Furniture....... Metal Household Furniture
Manufacturing (pt).
2515.................................... Mattresses and Bedsprings....... Mattress Manufacturing.
[email protected] Wood TV and, Radio Cabinets..... Wood Household Furniture
Manufacturing, Except Upholstered
(pt).
[email protected] Household Furniture, NEC........ Other Furniture Manufacturing (pt).
2521.................................... Wood Office Furniture........... Wood Office and Public Building
Furniture Manufacturing (pt).
[email protected] Office Furniture, Except Wood:..
Metal Office Furniture........ Metal Office Furniture Manufacturing
(pt).
Office Furniture Not Made of Other Furniture Manufacturing (pt).
Wood or Metal.
[email protected] Public Building and Related
Furniture:
Blackboards................... All Other Miscellaneous
Manufacturing (pt) (To Be Included
in Miscellaneous Manufacturing
subsector).
Seats for Motor Vehicles...... Motor Vehicle Fabric Accessory and
Seat Manufacturing (pt) (Included
in Transportation Equipment
Manufacturing subsector).
Metal Furniture for Public Metal Office and Public Building
Building. Furniture Manufacturing (pt).
Wood Furniture for Public Wood Office and Public Building
Building. Furniture Manufacturing (pt).
Other Furniture Not Made of Other Furniture Manufacturing (pt).
Wood or Metal for Public
Buildings.
[email protected] Wood Office and Store Fixtures,
Partitions, Shelving, and
Lockers:
Except Architectural Woodwork, Wood Office and Store Fixture,
Millwork and Fixtures. Partition, Shelving and Locker
Manufacturing (pt.).
Custom Architectural Woodwork, Custom Architectural Woodwork,
Millwork and Fixtures. Millwork, and Fixtures.
[email protected] Partitions and Fixtures, Except
Wood:
Metal Office and Store Metal Office and Store Fixture,
Fixtures, Partitions, Partition, Shelving and Locker
Shelving, and Lockers. Manufacturing (pt).
Office and Store Fixtures, Other Furniture Manufacturing (pt).
Partitions, Shelving, and
Lockers Not Made of Metal.
2591.................................... Drapery Hardware and Blinds and Blind and Shade Manufacturing.
Shades.
[email protected] Furniture and Fixtures, NEC:
Hospital Beds................. Orthopedic, Prosthetic and Surgical
Appliance and Supply Manufacturing
(pt) (To Be Included in
Miscellaneous Manufacturing
subsector).

[[Page 26583]]

Metal Industrial Work Benches Metal Office and Public Building
and Stools, and Other Metal Furniture Manufacturing (pt).
Furniture Such As Ship
Furniture.
Wood Industrial Work Benches Wood Office and Public Building
and Stools, and Other Wood Furniture Manufacturing (pt).
Furniture Such As Ship
Furniture.
Other Furniture and Fixtures.. Other Furniture Manufacturing (pt).
3499.................................... Fabricated Metal Products, NEC:
Metal Frames and Furniture Metal Household Furniture
Parts, Household. Manufacturing (pt).
Metal Frames and Furniture Metal Office and Public Building
Parts, Office. Furniture Manufacturing (pt).
Powder Metallurgy............ Metal Stamping and Powder Metallurgy
Manufacturing (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).
Metal Boxes................... Metal Shipping Container, Barrel,
Drum, Keg, Pail, Bin, Box, etc.
Manufacturing (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).
Safe and Vault Locks Hardware Manufacturing,
Including Locks (pt) (Included
in Fabricated Metal Product
Manufacturing subsector)..
Metal Aerosol Valves.......... Other Valve and Pipe Fitting
Manufacturing (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).
Other Metal Products.......... All Other Miscellaneous Fabricated
Metal Product Manufacturing (pt)
(Included in Fabricated Metal
Product Manufacturing subsector).
[email protected] Lead Pencils, Crayons, and
Artist's Materials:
Metal Drafting Tables and Metal Office and Public Building
Boards. Furniture Manufacturing (pt).
Wood Drafting Tables and Wood Office and Public Building
Boards. Furniture Manufacturing (pt).
Drawing and India Ink......... Printing Ink Manufacturing (pt)
(Included in Chemical Manufacturing
subsector).
Other......................... Lead Pencil and Art Goods
Manufacturing (pt) (To be included
in Miscellaneous Manufacturing
subsector).
3999.................................... Manufacturing Industries, NEC:..
Beauty and Barber Chairs...... Metal Office and Public Building
Furniture Manufacturing (pt).
Burnt Wood Articles........... Other Wood Product Manufacturing
(pt) (Included in Wood Product
Manufacturing, Except Furniture
subsector).
Fur Bleaching, Currying, Leather and Hide Tanning and
Scraping, Tanning and Dyeing. Finishing Manufacturing (pt)
(Included in Leather and Allied
Product Manufacturing subsector)
Lamp Shades of Paper and Other Lighting Equipment
Textile. Manufacturing (pt) (Included in
Electrical Equipment, Appliance and
Component Manufacturing subsector).
Matches....................... Other Miscellaneous Chemical Product
Manufacturing (pt) (Included in
Chemical Manufacturing subsector).
Metal Products, Such As Combs, All Other Fabricated Metal Product
Hair Curlers, Etc.. Manufacturing (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).
Plastics Products, Such As All Other Plastic Product
Combs, Hair Curlers, Etc.. Manufacturing (pt) (Included in
Rubber and Plastic Product
Manufacturing subsector).
Flexographic Printing Eyeglass Commercial Flexographic Printing
Frames for the Trade. (pt) (Included in Printing and
Related Support Activities
subsector).
Gravure Printing Eyeglass Commercial Gravure Printing (pt)
Frames for the Trade. (Included in Printing and Related
Support Activities subsector).
Lithographic Printing Eyeglass Commercial Lithographic Printing
Frames for the Trade. (pt) (Included in Printing and
Related Support Activities
subsector).
Screen Printing Eyeglass Commercial Screen Printing (pt)
Frames for the Trade. (Included in Printing and Related
Support Activities subsector).
Other Printing Eyeglass Frames Other Commercial Printing (pt) (
for the Trade. Included in Printing and Related
Support Activities subsector).
Tape Measures................. Hand and Edge Tool Manufacturing
(pt) (Included in Fabricated Metal
Product Manufacturing subsector).
Other......................... All Other Miscellaneous
Manufacturing (pt) (To Be Included
in Miscellaneous Manufacturing
subsector).
5712.................................... Furniture Stores:
Custom Made Furniture, Except Wood Household Furniture
Cabinets. Manufacturing, Except Upholstered
(pt).
Custom Wood Cabinets.......... Wood Kitchen Cabinet Manufacturing
(pt).
Other Than Custom Made To Be Included in the Retail sector.
Furniture.
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of'', @ means time series break has been created that is greater than 3% of
the 1992 value of shipments for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere
Classified.

[[Page 26584]]

Description of Changes to the U.S. System

A number of the changes listed in this section were made for
reasons of international comparability. Where one or more of the three
North American countries had different definitions of an industry
classification, adjustments to the definitions in one or more countries
were required. In constructing NAICS, the three countries agreed to
move, where change was required to attain international comparability,
in the direction of the country or countries whose existing
classification definitions most closely corresponded to the production-
oriented concept adopted for NAICS. Cases where the U.S. changed are
listed below; other cases where Canada or Mexico moved toward the U.S.
classification are not, of course, listed in this section.
Three activities were transferred out of 1987 SIC Furniture major
group.
Motor vehicle seats were transferred from part of 1987 SIC 2531,
Public Building and Related Furniture, into Motor Vehicle Fabric
Accessory and Seat Manufacturing in the 1997 NAICS subsector for
Transportation Equipment Manufacturing. This change was made for
international comparability and because there is very little production
similarity between the manufacture of automobile seats and the
production of church pews and like products that are in 1987 SIC 2531.
Hospital beds were transferred from part of 1987 SIC 2599,
Furniture and Fixtures, NEC, into Orthopedic, Prosthetic, and Surgical
Appliance and Supply Manufacturing in the 1997 NAICS subsector for
Miscellaneous Manufacturing. This change was necessary to align the
U.S. classification to that of Canada and Mexico.
Blackboards were transferred from part of 1987 SIC 2531, Public
Building and Related Furniture, into All Other Miscellaneous
Manufacturing in the 1997 NAICS subsector for Miscellaneous
Manufacturing. This change was necessary to align the U.S.
classification system with that of Mexico.
Eight activities were transferred into the 1997 NAICS Furniture
Manufacturing subsector. Three of the eight were transformed from 1987
SIC NEC industries.
Wooden chair frames and seats were transferred from part of 1987
SIC 2426, Hardwood Dimension and Flooring Mills, and classified in this
subsector. This change was necessary to align the U.S. classification
with that of Mexico and Canada, and because the production processes
are similar.
Wood laundry hampers were transferred from part of 1987 SIC 2499,
Wood Products, NEC, and placed by component material in their
respective NAICS industries. This change was necessary to align the
U.S. classification with that of Canada.
Custom wood household furniture was transferred from part of 1987
Retail Industry SIC 5712, Furniture Stores, into Wood Household
Furniture. This change was necessary to align the U.S. classification
with that of Mexico and Canada, and because the production process is
essentially that of furniture manufacturing and the retailing activity
is subsidiary.
Wood kitchen cabinets were transferred from 1987 SIC Major Group
24, Lumber and Wood Products, Except Furniture. This change reflects
production processes that are essentially identical with those for
furniture. The change also facilitated and increased the international
comparability with Canada and Mexico.
Custom wood kitchen cabinets were transferred from part of 1987
Retail SIC 5712, Furniture Stores, into Wood Kitchen Cabinet
Manufacturing, for international comparability, as noted above.
Drafting tables and boards were transferred from 1987 SIC 3952,
Lead Pencils, Crayons, and Artists' Materials, and classified in the
Furniture Manufacturing subsector. This change was necessary to align
the U.S. classification with that of Canada and Mexico, and because the
production process is similar to other furniture manufacturing.
Metal frames and furniture parts were transferred from 1987 SIC
3499, Fabricated Metal Products, NEC, and classified in the Furniture
Manufacturing subsector. This change was necessary to align the U.S.
classification with that of Canada.
Barber and beauty chairs were transferred from 1987 SIC 3999,
Manufacturing Industries, NEC, into Metal Office Furniture
Manufacturing. This change was necessary to reflect the common
production processes and similarities between beauty and barber shop
chair manufacturers and other furniture manufacturers.
A new industry was created for Custom Architectural Woodwork,
Millwork, and Fixtures from part of SIC 2541, Wood Office and Store
Fixtures, Partitions, Shelving and Lockers.
Also several activities were transferred within the Furniture
Manufacturing subsector.
In addition, 1987 SIC 2517, Wood TV and Radio Cabinets, was
combined with Wood Household Furniture Manufacturing because production
in 1987 SIC 2517 has declined in the U.S. and the production processes
are similar in both industries.
The number of Furniture Manufacturing industries declined from 13
in 1987 to 12 in 1997. For time series linkage, seven of the 13 1987
industries are comparable within three percent of the 1997 industries.

Part V--Proposed New Industry Structure for Printing and Related
Support Activities.

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 15

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following subsector:

Printing and Related Support Activities

Attachment 1--NAICS Structure

XX Printing and Related Support Activities
XXX Printing and Related Support Activities
XXXX Printing
XXXX Support Activities for Printing

Attachment 2--North American Industry Classification System

Draft Classification for:
Printing and Related Support Activities

Representatives of the statistical agencies of Canada, Mexico, and
the

[[Page 26585]]

United States agree to a draft industrial classification for these
industries.
The draft classification applies to the subsector, Printing and
Related Support Activities. The subsector is subdivided into a single
industry group and two industries. The subsector will be part of the
Manufacturing sector of the classification.

A General Outline

Printing and Related Support Activities industries print products
such as newspapers, books, periodicals, business forms, greeting cards,
and other material. Support activities, such as bookbinding, plate
making, and data imaging are also included in this subsector. These
activities are an integral part of the printing industry, and a product
(a printing plate, a bound book, or a computer disk or file) that is an
integral part of the printing industry is almost always provided by
these operations.
Processes used in printing include a variety of methods used to
transfer an image from a plate, screen, or computer file to some
medium, such as paper, plastic, metal, textile articles or wood. The
most prominent of these methods is to transfer the image from a plate
or screen to the medium (lithographic, gravure, screen and flexographic
printing). A rapidly growing new technology uses a computer file to
``drive'' the printing mechanism directly to create the image (non-
impact printing). A number of important boundary issues involving
printing and other sectors are noted in the Some Changes to National
Classifications section.
In contrast to many other classification systems that locate
publishing of printed materials in manufacturing, NAICS locates the
publishing of printed products in a separate subsector, Publishing,
which is part of the new NAICS Information sector, to be published
separately. Though printing and publishing are often carried out by the
same enterprise (a newspaper, for example), it is less and less the
case that these distinct activities are carried out in the same
establishment. More information on this change is contained in the text
to the proposed NAICS Information sector.

Limitations and Constraints of the Classification

Most of the printing activities that take place in one country
exist in the others. It is not possible in all countries to identify
separately production process industries or specialized end use
production categories. For example, in Canada and the United States,
unique production establishments exist for the printing of books and
business forms, and these processes can be recognized in the U.S.
classification. In Mexico, however, book or business forms printers
also print other types of products. Similarly, printing in Canada and
the United States occurs largely in establishments that use a single
printing process, such as lithographic or screen printing; in Mexico,
diverse types of printing equipment are used in the same establishment.
For these reasons, only broad categories for printing (of all
types) and support activities for printing were created for NAICS. Each
country will publish additional categories that comprise subdivisions
of NAICS industries, to present data for activities that are nationally
significant.
For those users requiring detailed commodity information, each
country will publish information on the products of these industries.
Efforts are also underway to harmonize the commodity classifications to
allow for greater comparability of these statistics.

Relationship to ISIC

Both 4-digit industries in this subsector are contained within
Division 22, Publishing Printing, and Reproduction of Recorded Media,
of the current Standard Industrial Classification of all Economic
Activities (ISIC, Revision 3) of the United Nations. However, two
activities that are included in the NAICS Printing and Related Support
Activities subsector are classified elsewhere in ISIC. Printing on
textile articles is included in ISIC 1729, Manufacture of Other
Textiles, NEC. Lithographic and gravure commercial printing of labels
and tags is included in ISIC 2109, Manufacture of Other Articles of
Paper and Paperboard.

Some Changes to the National Classifications

For all three countries, publishing, including integrated
publishing and printing establishments, has been moved out of the
Printing and Related Support Activities subsector into the new NAICS
Information sector.
For Canada, a major change to the Printing and Related Support
Activities subsector is to move printing on purchased fabric articles
(mostly ``T'' shirts) from the Clothing Industries major group to this
subsector. The production process involved here is printing, and not
the manufacture of clothing. Another change is the redefinition of
certain types of printing, sometimes referred to as ``quick printing.''
This printing is done in relatively small, often ``store front''
establishments; these establishments use small printers, and usually
bundle printing with other services, such as mailing, fax and similar
types of activities. Because printing is only one of a number of
services performed in the same establishment, ``quick printers'' have
been located in the NAICS Management, Employment, Administrative and
Support Services subsector. This redefinition must be carefully
constructed to ensure that commercial printing is not misclassified in
the Management, Employment, Administrative and Support Services
subsector.
For Mexico, changes to this subsector are minor.
For the United States, changes parallel those made for Canada.
Printing on purchased fabric articles and the redefinition of quick
printing were made for the United States, as they were in Canada.
Printing on signs and advertising specialties was also moved here from
its current U.S. classification in Miscellaneous Manufacturing in order
to attain comparability with Canada and Mexico, and because the
production process is primarily printing. A similar change, made for
the identical reasons, involves printing on tags and labels.

Achievement of Objectives

[[Page 26586]]

have been minimized. The statistical agencies can develop statistical
``links,''' to enable the re-tabulation of time series on the new NAICS
classification structure.
The classification achieves comparability for the three
participating countries. Based on existing data, all three countries
expect to be able to publish data regularly at the industry (4-digit)
level of the structure. All countries agree on the detailed definitions
of the industries.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the NAICS industry subsector
presented in Part V, Section A--Attachment 1, contain less detail than
is currently in the U.S. SIC system, and less detail than is required
to meet important analytical requirements in the U.S. The three country
agreement on NAICS envisions that each country may develop national
detailed industries below the NAICS industry level, so long as the
national detail can be aggregated to the NAICS classification, thus
assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS
industry subsector covered in Part V of this notice. For cases where no
5-digit detail is shown, the ECPC is proposing that the NAICS 4-digit
industries will also represent the most detailed U.S. industries.

[[Page 26587]]

................ 2796 Platemaking and Related Services.

----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; L--null industry for the U.S.; N--new
industry; R--revised industry; and * means ``part of''. The abbreviation NEC is used for Not Elsewhere
Classified.

Table 2
----------------------------------------------------------------------------------------------------------------
1987 SIC code 1987 SIC description 1997 U.S. description
----------------------------------------------------------------------------------------------------------------
2711.................................... Newspapers: Publishing, or Included in new Information sector.
Publishing and Printing.
2721.................................... Periodicals: Publishing, or Included in new Information sector.
Publishing and Printing.
2731.................................... Books: Publishing, or Publishing Included in new Information sector.
and Printing.
2732.................................... Book Printing................... Book Printing.
2741.................................... Miscellaneous Publishing........ Included in new Information sector.
2752.................................... Commercial Printing, Commercial Lithographic Printing
Lithographic. (pt.).
Commercial Printing,
Lithographic (Except Quick
Printing):
Quick Printing................ Included in Other Services sector.
2754.................................... Commercial Printing, Gravure.... Commercial Gravure Printing (pt).
[email protected] Commercial Printing, NEC:
Flexographic Printing......... Commercial Screen Printing (pt).
Other Commercial Printing
(pt)..
2761.................................... Manifold Business Forms......... Manifold Business Form Printing
(pt).
[email protected] Greeting Cards:
Lithographic Printing of Commercial Lithographic Printing
Greeting Cards. (pt).
Gravure Printing of Greeting Commercial Gravure Printing (pt).
Cards.
Flexographic Printing of Commercial Flexographic Printing
Greeting Cards. (pt).
Screen Printing of Greeting Commercial Screen Printing (pt).
Cards.
Other Printing of Greeting Other Commercial Printing (pt).
Cards.
Publishing Greeting Cards..... Included in new Information Sector.
[email protected] Blankbooks, Loose-leaf Binders
and Devices:
Lithographic Printing of Commercial Lithographic Printing
Checkbooks. (pt).
Gravure Printing of Checkbooks Commercial Gravure Printing (pt).
Flexographic Printing of Commercial Flexographic Printing
Checkbooks. (pt).
Screen Printing of Checkbooks. Commercial Screen Printing (pt).
Other Printing of Checkbooks.. Other Commercial Printing (pt).
Blankbooks, Loose-leaf Binders Blankbook, Loose-leaf Binder and
and Devices. Device Manufacturing.
2789.................................... Bookbinding and Related Work.... Tradebinding and Related Work.
[email protected] Typesetting..................... Prepress Services (pt).
[email protected] Platemaking and Related Services Prepress Services (pt).
[email protected] Signs and Advertising
Specialties:
Lithographic Printing of Commercial Lithographic Printing
Advertising Specialties. (pt).
Gravure Printing of Commercial Gravure Printing (pt).
Advertising Specialties.
Flexographic Printing of Commercial Flexographic Printing
Advertising Specialties. (pt).
Screen Printing of Advertising Commercial Screen Printing (pt).
Specialties.
Other Printing of Advertising Other Commercial Printing (pt).
Specialties.
Electric Signs................ Electric Signs (Included in
Electrical Equipment, Appliance,
and Component Manufacturing
subsector).
Non-Electric Wood Signs....... Other Wood Product Manufacturing
(pt) (Included in Wood Product
Manufacturing, Except Furniture
subsector).
Non-Electric Metal Signs...... All Other Fabricated Metal Product
Manufacturing (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).
Non-Electric Plastics Signs... All Other Plastic Product
Manufacturing (pt) (Included in
Rubber and Plastic Product
Manufacturing subsector).
[email protected] Manufacturing Industries, NEC:
Lithographic Printing of Commercial Lithographic Printing
Eyeglass Frames for the Trade. (pt).
Gravure Printing of Eyeglass Commercial Gravure Printing (pt).
Frames for the Trade.
Flexographic Printing of Commercial Flexographic Printing
Eyeglass Frames for the Trade. (pt).
Screen Printing of Eyeglass Commercial Screen Printing (pt).
Frames for the Trade.
Other Printing of Eyeglass Other Commercial Printing (pt).
Frames for the Trade.
Other......................... Other Miscellaneous Manufacturing
(pt) (To Be Included in
Miscellaneous Manufacturing
subsector).
[email protected] Automotive Trimmings, Apparel
Findings, and Related Products:

[[Page 26588]]

Printing and Embossing on Printing on Apparel.
Fabric Articles.
Automotive Trimmings.......... Motor Vehicle Fabric Accessory and
Seat Manufacturing (pt) (Included
in Transportation Equipment
Manufacturing subsector).
Apparel Findings and Trimmings Apparel Belts, Apparel Accessories,
and Other Apparel Manufacturing
(pt) (Included in Apparel
Manufacturing subsector).
Other Apparel Trimmings....... All Other Miscellaneous Textile
Product Mills (pt) (Included in
Textile Product Mills subsector).
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of''. @ means time series break has been created that is greater than 3% of
the 1992 revenues for the 1987 SIC industry.

Description of Changes to the U.S. System

Three new industries were added to the 1997 industry structure for
this industry subsector.
Commercial Screen Printing was created from part of 1987 SIC 2759,
Commercial Printing, NEC; part of 1987 SIC 2771, Greeting Cards; part
of 1987 SIC 2782, Blankbooks, Loose-leaf Binders, and Devices; part of
1987 SIC 3993, Signs and Advertising Specialties; and part of 1987 SIC
3999, Manufacturing Industries, NEC. This change was made in response
to a proposal from the industry and it corresponds to the production-
oriented industry concept accepted for NAICS.
Commercial Flexographic Printing was created from part of 1987 SIC
2759, Commercial Printing, NEC; part of 1987 SIC 2771, Greeting Cards;
part of 1987 SIC 2782, Blankbooks, Loose-leaf Binders, and Devices; and
part of 1987 SIC 3993, Manufacturing Industries, NEC, and part of 1987
SIC 3999, Manufacturing Industries, NEC. This change corresponds to the
production-oriented industry concept accepted for NAICS.
Printing on Apparel was created from part of 1987 SIC 2396,
Automotive Trimmings, Apparel Findings, and Related Products. This
change was made for international comparability, and because the
process involved is printing, not apparel manufacture.
Four industries were removed from this industry group and
transferred to the new NAICS Information sector. They are:
1987 SIC 2711, Newspapers: Publishing, or Publishing and Printing.
1987 SIC 2721, Periodicals: Publishing, or Publishing and Printing.
1987 SIC 2731, Books: Publishing, or Publishing and Printing.
1987 SIC 2741, Miscellaneous Publishing.
These four industries were transferred to the newly created
Information sector in response to the increased use of electronic and
other means for information transformation, manipulation, and
dissemination, and because the production processes that characterize
publishing are neither printing nor manufacturing. Where printing of
newspapers, periodicals and books take place in a separate
establishment (increasingly the case), these printing activities remain
in manufacturing. More information is contained in the text for the
NAICS Information sector, published separately.
Two activities were transferred into the 1997 NAICS Printing and
Related Support Activities subsector.
Advertising specialty manufacturing transferred from part of 1987
SIC 3993, Signs and Advertising Displays, into Commercial Printing,
depending on the printing process.
Printing eyeglasses for the trade transferred from part of 1987 SIC
3999, Manufacturing Industries, NEC, into Commercial Printing,
depending on the printing process. Transferring these two activities
into the Printing and Related Support Activities subsector was
necessary to align the U.S. classification with those of Canada and
Mexico, and because the activities are printing processes.
One activity was transferred out of the 1977 NAICS subsector for
Printing and Allied Industries.
Quick printing, 1987 industry code 2752 was transferred to the
Other Services subsectors. This change was made to better conform with
production services.
Also, several activities were transferred within the Printing and
Related Support Activities subsector. The number of printing industries
decreased from 14 in 1987 to 11 in 1997. For time series linkage, 5 of
the 14 1987 industries are comparable within three percent of the 1997
industries.

Part VI--Proposed New Industry Structure for Professional, Scientific
and Technical Services

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 16

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following industries: Professional, Scientific and Technical Services.
The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on September 27, 1995-September 29, 1995 in
Mexico City, Mexico.

Attachment 1--NAICS Structure

XX Professional, Scientific and Technical Services
XXX Legal Services
XXXX Offices of Lawyers
XXXX Offices of Notaries
XXXX Other Legal Services
XXX Accounting, Tax Preparation, Bookkeeping and Payroll Services
XXXX Offices of Accountants

[[Page 26589]]

XXXX Tax Preparation, Bookkeeping and Payroll Services
XXX Architectural, Engineering and Related Services
XXXX Architectural Services
XXXX Engineering Services
XXXX Drafting Services
XXXX Building Inspection Services
XXXX Landscape Architecture Services
XXXX Surveying and Mapping Services
XXXX Geophysical Surveying Services
XXXX Testing Laboratories
XXX Specialized Design Services
XXXX Interior Design Services
XXXX Industrial Design Services
XXXX Graphic Design Services
XXXX Other Specialized Design Services
XXX Computer Systems Design and Related Services
XXXX Computer Systems Design and Related Services
XXX Management, Scientific and Technical Consulting Services
XXXX Management Consulting Services
XXXX Environmental Consulting Services
XXXX Other Scientific and Technical Consulting Services
XXX Scientific Research and Development Services
XXXX Research and Development in the Physical and Engineering
Sciences
XXXX Research and Development in the Life Sciences
XXXX Research and Development in the Social Sciences and Humanities
XXX Advertising and Related Services
XXXX Advertising Agencies
XXXX Public Relations Services
XXXX Media Buying Agencies
XXXX Media Representatives
XXXX Display Advertising
XXXX Direct Mail Advertising
XXXX Advertising Material Distribution
XXXX Other Services Related to Advertising
XXX Other Professional, Scientific and Technical Services
XXXX Market Research and Public Opinion Polling
XXXX Photography Services
XXXX Translation and Interpretation Services
XXXX Veterinary Services
XXXX All Other Professional, Scientific and Technical Services

Attachment 2--North American Industry Classification System

Draft Classification for:

Professional, Scientific, and Technical Services

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industry classification for the
Professional, Scientific, and Technical Service industries.
The subsector is further subdivided into nine industry groups and
37 industries. The placement of this subsector within the NAICS
structure is not yet determined.

A General Outline

The statistical agencies of Canada, Mexico, and the United States
have agreed to place major emphasis on improved services
classifications in NAICS. In their July 26, 1994 statement of concept
for NAICS (FR, Vol. 59, No. 142, p. 38094), they stated: ``Statistical
agencies of the three countries agree to give special attention to
developing production-oriented classifications for (a) new and emerging
industries, (b) service industries in general * * *.''
Past industry classifications have two analytical inadequacies.
First, individual services industries are too few in number, which is
another way of saying that they have been defined too broadly to be
useful--they have combined too many disparate activities into a single
industry definition. This criticism has been heard even in the U.S.,
which had more services industry detail in its 1987 Standard Industrial
Classification Manual than was the case for most other classification
systems. As indicated later in this outline, the detail problem has
been addressed in NAICS by breaking out new services industries from
many of the broad and heterogeneous industries in the former systems of
all three countries.
A second problem in past services industry classifications is a
general lack of a coherent structure. To take the 1987 U.S. SIC system
as an example, though it had what in NAICS would be called a
``subsector'' for ``Business Services,'' it was difficult to discern an
organizational principle in this subsector, or the relation that the
industries included in it had to each other or to the subsector as a
whole. Moreover, engineering and architecture were not defined as
business services at all, and were located in a different part of the
classification. Again, this lack of coherent structure has been
criticized.
In NAICS, organizing principles have been sought that will give
coherence to NAICS services sectors and subsectors. The organizing
principle of the Professional, Scientific, and Technical Services
subsector is human capital, the knowledge and skills of the employees
in the subsector.
A services firm is often in the business of selling the skills of
its workers. When this is the case, the production process of a
services producer depends essentially on the abilities and capabilities
of its employees. Of course, human capital is important in other areas
of services as well--medicine, for example. A broad interpretation of
the principles of human capital could have led to the inclusion of
other industries in this subsector. For example, investment advisors
and real estate appraisers also make available the particular knowledge
and skills of their human capital.
The distinguishing feature of the Professional, Scientific, and
Technical Services subsector is the fact that most of the industries
grouped in it have production processes that are almost wholly
dependent on worker skills. In most of these industries, equipment and
materials are not of major importance, unlike health care, for example,
where ``high tech'' machines and materials are important collaborating
inputs to labor skills in the production of health care. Thus, the
establishments classified in this subsector are expertise sellers. Much
of the expertise requires degrees, though not in every case. Moreover,
differences in expertise and in training distinguish the industries
that are classified in this subsector.
Because of the importance of services industries, and their rapid
growth in North America, the three countries' statistical agencies have
created a forward looking classification for this subsector that is
intended to provide a framework for measuring services as they expand
throughout the entire North American economy. For this reason, many
NAICS industries in this subsector have been created even when they
cannot at present be supported by all three countries. This is a
different rule than the one followed in most of the traditional goods
producing sectors. The following paragraphs provide a brief description
of the content of each industry group and observations on issues that
are of particular interest.
The Legal Services industry group includes Offices of Lawyers,
Offices of Notaries and Other Legal Services. Offices of Lawyers are by
far the largest industry in this group. Though many law firms
specialize in particular forms of law practice, no acceptable way was
found to further disaggregate this industry into more detailed
industries that would be collectible in all three countries, and would
apply to the operations of the industry in all three countries. In
Canada and Mexico, Offices of Notaries are empowered to draft, approve,
and execute legal documents and contracts. Such establishments do not
exist in the United States. The Other Legal Services industry actually
groups legal activities that are noncomparable in the three countries.
In Canada, this industry includes offices of bailiffs that are involved
in a mixture of activities, including enforcing court orders, serving
writs and summonses, repossession of property and providing court house
security. Bailiffs in Mexico

[[Page 26590]]

and the United States are employees of the courts and normally provide
security, and serve court documents. For this reason, offices of
bailiffs do not exist as establishments in the U.S. and Mexico. The
Other Legal Services industry includes offices of paralegals in the
United States. Though most paralegals in the U.S. are employees of
other legal firms, separate establishments of paralegals are emerging,
and are placed in the Other Legal Services industry. The Other Legal
Services industry does not exist in Mexico, because neither bailiffs
nor paralegals exist as independent establishments.
The Accounting, Tax Preparation, Bookkeeping and Payroll Services
industry group includes establishments providing auditing, accounting,
tax preparation, bookkeeping and billing, and payroll accounting
services. The dominant expertise in this industry group is expertise in
accounting. However, other activities that are sometimes done in
accounting firms and sometimes in more specialized establishments (tax
preparation, for example) are also located here. The United States will
subdivide the Offices of Accountants industry to distinguish auditing
accountants (Certified Public Accountants (CPAs)) from non-auditing
accountants (non-CPAs).
The Architectural, Engineering and Related Services industry group
includes establishments providing architectural, engineering, drafting,
building inspection and surveying services. All of the proposed
industries within this industry group are specialized and economically
significant in Canada and the United States. However, three industries
(Drafting Services, Surveying and Mapping Services and Geophysical
Surveying Services) do not exist in Mexico. The Testing Laboratories
industry includes establishments engaged in the provision of laboratory
sampling and technical testing services, such as chemical analysis and
nondestructive testing. It is located in this subsector because the
industries in this industry group are major users of testing laboratory
services and because of the processes used in the laboratories.
The Specialized Design Services industry group includes
establishments providing interior, industrial, graphic and other
specialized design services. It should be noted that the Architectural
and Engineering Services industries also include establishments that
are engaged in providing design services.
The Computer Systems Design and Related Services industry group
includes establishments providing expertise in the field of information
technologies. These establishments provide services such as custom
programming services, systems design services, data center management
services and technical consulting services. Though custom computer
programming is in this sector, the reproduction of packaged software is
in the NAICS Manufacturing sector, and software publishing and on-line
retrieval services are in the new NAICS Information sector, to be
published separately.
The Management, Scientific and Technical Consulting Services
industry group includes establishments that advise and counsel clients
on virtually all aspects of corporate operations, as well as those
offering technical advice and counsel on non-management issues. Many
kinds of consulting exist in a modern economy. This industry group
brings together those consultants who, while having specific expertise,
offer a wide range of services to their prospective clients. It is not
the clients' business on which the consultants in this industry group
have expertise, but rather, they have specialized knowledge with
potential applications in a broad range of industries. Accordingly,
those establishments that provide consulting services that are closely
tied to a specific industry are classified in the sector or group of
industries to which they are related. For example, agricultural
consultants are included in the Agriculture sector. In addition,
establishments that provide consulting services in conjunction with
other services as part of an integrated process, or in conjunction with
other sales, are excluded. For example, the provision of advice and
counsel on financial matters is often related to or incidental to the
sale of financial products, and is therefore included in the Finance
and Insurance sector.
The Scientific Research and Development Services industry group
includes establishments engaged in original investigation undertaken on
a systematic basis to gain new knowledge (research) and/or in the
application of research findings or other scientific knowledge for the
creation of new or significantly improved products or processes
(experimental development). The industries within this industry group
are defined on the basis of the domain of research; that is, on the
scientific expertise of the establishment.
The Advertising and Related Services industry group includes
Advertising Agencies, Public Relations Services, Media Buying Agencies,
Media Representatives, Display Advertising, Direct Mail Advertising,
Advertising Material Distribution and Other Services Related to
Advertising. These establishments are primarily engaged in preparing
advertising campaigns, placing advertisements, or the delivery of
advertising material to the general public.
The Other Professional, Scientific, and Technical Services industry
group represents a residual grouping that includes Market Research and
Public Opinion Polling, Photography Services, Translation and
Interpretation Services, Veterinary Services and other activities that
could not be placed within other industry groups.

Limitations and Constraints of the Classification

Differences in the organization of activities within
establishments, and differences in the economic significance of
individual industries from country to country, were the major issues
faced in the development of a common classification structure for this
subsector. These issues were dealt with by grouping activities in a
manner that recognized the different levels of integration and
diversification of establishments while allowing each country to add
industries where necessary to reflect the greater level of
specialization or economic significance of particular industries in its
national economy. Still, in some instances, proposed NAICS industries
in this subsector do not exist in all countries.
Establishments that offer services to a broad spectrum of
industries, and therefore do not require particular expertise in the
client's own industry, are classified in this sector. However, the
narrower interpretation imposes limits on studies of a more broadly
defined ``professional or knowledge-based sector.'' Uses requiring such
a broad definition will require regrouping of NAICS industries in other
sectors.
The identification of new and emerging industries is one of the
principal goals of the NAICS project. Many users have expressed the
wish that this goal be achieved while minimizing breaks in time series.
However, these two objectives are more often than not conflicting, and
the degree to which proposed NAICS industries relate to existing
national classification systems varies from country to country.

Relationship to ISIC

Each of the NAICS industries created in this subsector can be
assigned to a division of the current International Standard Industrial
Classification of all Economic Activities (ISIC, Revision 3) of the
United Nations. The majority of

[[Page 26591]]

the NAICS industries are contained within ISIC Division 74, Other
Business Activities. Other NAICS industries in this sector relate to
ISIC Divisions 72, Computer and Related Activities and ISIC Division
73, Research and Development.

Changes to the National Classification

For Canada, the identification of a significant number of new
industries represents the most important change to the 1980 Canadian
Standard Industrial Classification (CSIC). Twenty-seven of the 37
proposed NAICS industries applicable in Canada are new. The industries
of this sector are, for the most part, currently classified in CSIC 77,
Business Service Industries. The expansion is particularly important
for legal services (CSIC 7761), computer services (CSIC 7721),
advertising services (CSIC 774), scientific and technical services
(CSIC 7759) and other business services (CSIC 7799).
The Legal Services industry group now contains three industries
compared to one in the existing Canadian system. The Offices of
Notaries and Other Legal Services industries are new.
The current Computer Services industry (CSIC 7721) is split into
five industries. The computer systems design and related services
component is part of this subsector. The newly created Information
sector contains three industries, namely, Software Publishing, On-line
Retrieval Services and Data Transaction Processing Services, that were
formerly contained in CSIC 7721, but are not placed in the NAICS
Professional, Scientific and Technical Services subsector. Computer
rental and leasing is now classified in the Rental and Leasing
subsector of NAICS.
The Advertising Services industry group (CSIC 774) expands to eight
industries from the current four. The new industries are Public
Relations Services, Media Buying Agencies, Direct Mail Advertising, and
Advertising Material Distribution.
Nine of the proposed NAICS industries are components of the Other
Scientific and Technical Services Industry (CSIC 7759). This includes
Drafting Services, Landscape Architecture Services, Surveying and
Mapping Services, Geophysical Surveying Services, Environmental
Consulting Services, Testing Laboratories and the three proposed
Scientific Research and Development Services industries.
The proposed industries for Interior Design Services, Translation
and Interpretation Services, Document Preparation Services, Telephone
Call Centers and Packaging and Labeling Services are components of CSIC
7799, Other Business Services n.e.c. Various parts of this industry are
reassigned to new NAICS industries.
Other significant changes include the creation of two industries
from CSIC 7771, Management Consulting Services (Management Consulting
and Management Services) and the splitting of a Graphic Design Services
industry from CSIC 7749, Other Advertising Services.
The majority of proposed NAICS industries (22) relate to only one
existing CSIC industry. In those cases, the task of linking statistics
based on the old and new systems is relatively easy. For the remaining
classes, this task is much more difficult since they are defined in
terms of components of existing industries for which no data are
available. However, many of these partial relationships are marginal in
terms of economic activity.
For Mexico, 24 CMAP industries are included in this subsector: four
industries have one-to-one correspondence with NAICS; four CMAP
industries were combined to form one NAICS industry class; two other
industries were merged with parts of other industry classes to form two
new NAICS industries; and of the remaining fourteen CMAP industry
classes, 27 industries were created for this subsector in the NAICS.
Some of the new or revised industries reflect an increasing degree of
specialization in this subsector in Mexico. Services that were offered
in combination within the same establishment, even when one of these
services was a secondary activity, are now provided separately by
establishments that specialize in only one activity. Therefore, in this
new classification system there are industries that were not even
mentioned in CMAP, because they were formerly either secondary
activities or included with other activities.
The activities that are incorporated into this subsector are
currently classified in branch 9510 of the CMAP, Provision of
Professional Services, Technical and Specialized. However, to fill out
the new subsector some activities were relocated that were found in
other CMAP branches or subsectors or even from other activity sectors.
From CMAP Subsector 92, Services of Education, Investigation,
Medicine, Welfare and Civil and Religious Associations, the scientific
investigation services performed by the private sector and the public
sector (CMAP classes 922100 and 922200, respectively) were reclassified
into three classes: Research and Development in the Physical and
Engineering Services; Research and Development in the Life Sciences;
and Research and Development in the Social Sciences and Humanities.
CMAP Subsector 94, Cultural, Recreational, and Sports Services,
included establishments that are devoted to personnel contracting for
theatrical and cinematographic works (CMAP classes: 941101, Private
Production of Cinematographic Movies; 941106, Private Promotion
Services, Assembly and Artistic Spectacles Presentation; and in 941204,
Promotion and Assembly Public Service and Artistic Spectacles
Presentation). These contracting agencies are joined to the agencies of
personnel placement to form a single NAICS class.
CMAP Class 952002, Various Personal Services, Photographic Services
is reclassified to NAICS Photography Services.
Two classes of CMAP Branch 9510 are not included in this subsector:
CMAP class 951014, News Agency Services, and CMAP 951016, Photograph
and Movies Developing Services. The first is reclassified to the sector
for Information and the second is included in the Arts, Entertainment
and Recreation subsector.
For the rest of the classes of CMAP Branch 9510, the most important
changes are the separations of the CMAP classes 951005, Services of
Advising and Technical Studies of Engineering and Architecture; 951008,
Services of Advertising and Related Activities; 951010, Advising
Services in Administration and Organization of Businesses, and 951023,
Other Professional Services, Technical and Specialized, not mentioned
previously. The creation of new product classes resulting from the
separation is based on two fundamental criteria: on the one hand, the
specificity concerning production function and, additionally, the
perspective of growth in the future.
The CMAP class 951005, Services of Engineering and Architecture
Consulting and Mechanical Studies, is split into six parts; the first
five are identified by their very specific production functions:
Architectural Services, Engineering Services, Surveying and Mapping
Services, Geophysical Surveying Services and Testing Laboratories. The
sixth part (prototypes design) is combined with the services of urban
planners and with the services of mode designers (located within the
current CMAP class 951023), to become NAICS industry Other Specialized
Design Services.
The current class Advertising and Related Activities (CMAP 951008)
is split into eight NAICS industries:

[[Page 26592]]

Advertising Agencies, Media Purchasing Agencies, Media Representation
Agencies, Advertising Agencies, Direct Mail Agencies, Direct Mail
Advertising Agencies, Commercial Event and Convention Organizers, and
Other Services Related to Advertising.
The current CMAP class 951010, Administration and Organization
Advising Services, is split into five NAICS industries: Administrative
Consultants, Public Relations Services, Translation and Interpretation
Services, Organizing Services, and Other Scientific and Technical
Consultancy Services.
Finally, certain activities in current CMAP class 951023, Other
Professional Services, Technical and Specialized Not Mentioned
Previously, are now NAICS industries.
For the United States, of the 37 proposed NAICS industries, 23 are
new. Of the 23 new industries in this subsector, eight were created
from 1987 SIC 7389, Business Services, Not Elsewhere Classified. This
former NEC industry had become a ``catch-all'' category that included
some of the fastest growing services in the U.S. economy, in a grouping
that had no natural interpretation or usefulness. Its size is
significantly reduced by the creation of the new industries in this
subsector. Examples of new industries that were created from 1987 SIC
7389 are: Other Legal Services, Drafting Services, Building Inspection
Services, Interior Design Services, Industrial Design Services, and
Translation and Interpretation Services. In addition, other activities
formerly included in SIC 7389 were redistributed among the industries
to create homogeneous industries or industry groupings. The
redistributions out of 1987 SIC 7389 will reduce its overall size by
approximately 40% of the establishments and receipts. In addition, the
remainder are redistributed into NAICS industry groups that have more
logic and coherence than the 1987 SIC 73 major group.
The NAICS industry group Accounting, Tax Preparation, Bookkeeping
and Payroll Services includes the services of accountants, tax
preparers, bookkeepers, and payroll services. The inclusion of tax
preparation services represents a significant change; these services
are currently included in 1987 SIC Major Group 72, Personal Services.
Accounting services were previously grouped with bookkeeping; the NAICS
structure separates these two activities.
The NAICS industry group Architectural, Engineering and Related
Services groups three previously existing services industries (1987
SICs 8711, 8712, 8713), one previously existing industry from
Agriculture (1987 SIC 0781) and includes two new industries.
The NAICS industry group Other Specialized Design Services includes
new industries for Interior Design Services, Industrial Design Services
and Graphic Design Services.
The NAICS industry group Management, Scientific and Technical
Consulting includes one significant change. It includes a separate
industry for Environmental Consulting Services. This service is
included in 1987 SIC 8999, Services Not Elsewhere Classified.
The NAICS industry group for Scientific Research and Development
Services changes the focus from the source of funding (commercial
versus non commercial) to the domain of research, that is, physical
sciences, life sciences, and social sciences.
The NAICS industry group Other Professional, Scientific and
Technical Services includes Photography Services that are in 1987 SIC's
7221, Photographic Studios, Professional, and 7335, Commercial
Photography. The U.S. will continue to separate these industries in its
5-digit industry detail.

Achievement of Objectives

The proposed classification meets the objectives for the North
American Industry Classification System. It is comprised of industries
that group establishments with similar production processes, that is,
it applies the production-oriented economic concept. The hierarchical
structure of the classification also follows the production concept.
The classification achieves comparability for the three
participating countries. Based on existing data, all three countries
expect to be able to publish data regularly at most industry levels of
the NAICS structure, though a number of exceptions exist, as noted in
the ``Limitations and Constraints of Classification'' above. The
proposed NAICS structure also introduces a number of new and emerging
industries by expanding the current classification systems of each
country for business and professional service industries. All countries
agree on the detailed definitions of the industries.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the NAICS industry subsector
presented in Part VI, Section A--Attachment 1, contain less detail than
is currently in the U.S. SIC system, and less detail than is required
to meet important analytical requirements in the U.S. The three country
agreement on NAICS envisions that each country may develop national
detailed industries below the NAICS industry level, so long as the
national detail can be aggregated to the NAICS classification, thus
assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS
industry subsector covered in Part VI of this notice. For cases where
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

[[Page 26593]]

XXXXX.............. Offices of Certified N *8721 Accounting, Auditing, and
Public Accountants. Bookkeeping Services (certified
public accountants).
XXXXX.............. Offices of Accountants, N *8721 Accounting, Auditing, and
Except Certified. Bookkeeping Services
(accountants, except certified
public accountants).
XXXX............... Tax Preparation,
Bookkeeping and Payroll
Services:
XXXXX.............. Tax Preparation Services. E 7291 Tax Return Preparation Services.
XXXXX.............. Bookkeeping and Billing N *8721 Accounting, Auditing, and
Services. Bookkeeping Services
(bookkeeping and billing).
XXXXX.............. Payroll Services......... N *7819 Services Allied to Motion Picture
Production (talent payment
services).
8721 Accounting, Auditing, and
Bookkeeping Services (payroll
services).
XXX................ Architectural, Engineering
and Related Services:
XXXX............... Architectural Services.... E 8712 Architectural Services.
XXXX............... Engineering Services...... E 8711 Engineering Services.
XXXX............... Drafting Services......... N *7389 Business Services, NEC (drafting
service).
XXXX............... Building Inspection N *7389 Business Services, NEC (home and
Services. building inspection services).
XXXX............... Landscape Architecture E 0781 Landscape Counseling and
Services. Planning.
XXXX............... Surveying and Mapping N *7389 Business Services, NEC (map
Services. making services).
*8713 Surveying Services (except
geophysical surveying).
XXXX............... Geophysical Surveying N *8713 Surveying Services (geophysical
Services. surveying).
XXXX............... Testing Laboratories...... R *8734 Testing Laboratories (except
veterinary testing
laboratories).
XXX................ Specialized Design ................ .................................
Services:.
XXXX............... Interior Design Services.. N *7389 Business Services, NEC (interior
design).
XXXX............... Industrial Design Services N *7389 Business Services, NEC
(industrial design).
XXXX............... Graphic Design Services... R 7336 Commercial Art and Graphic
Design.
*8099 Health and Allied Services, NEC
(medical artists).
XXXX............... Other Specialized Design
Services:
XXXXX.............. Land Use Planners N *8748 Business Consulting Services, NEC
Services. (planners of land use).
XXXXX.............. All Other Design Services N *7389 Business Services, NEC (fashion,
furniture, and other design
services).
XXX................ Computer Systems Design and
Related Services:
XXXX............... Computer Systems Design
and Related Services:
XXXXX.............. Custom Computer E 7371 Computer Programming Services.
Programming Services.
XXXXX.............. Systems Design Services.. N 7373 Computer Integrated Systems
Design.
*7379 Computer Related Services, NEC
(computer systems consultants).
XXXXX.............. Computer Facilities E 7376 Computer Facilities Management
Management Services. Services.
XXXXX.............. Other Computer Systems R *7379 Computer Related Services, NEC
Design and Related (except computer systems
Services. consultants).
XXX................ Management, Scientific and
Technical Consulting
Services:
XXXX............... Management Consulting
Services:
XXXXX.............. Administrative and N *8742 Management Consulting Services
General Management (administrative management and
Consulting. general management consulting).
XXXXX.............. Human Resources N *8742 Management Consulting Services
Consulting. (human resources and personnel
management consulting).
*7361 Employment Agencies (executive
placement services).
XXXXX.............. Marketing Consulting..... N *8742 Management Consulting Services
(marketing consulting).
XXXXX.............. Process, Physical, N *8742 Management Consulting Services
Distribution and (manufacturing management,
Logistics Consulting. physical distribution, and site
location consulting).
XXXXX.............. Other Management N *4731 Arrangement of Transportation of
Consulting Services. Freight and Cargo (tariff
consulting).
*8748 Business Consulting Services, NEC
(safety consulting).
XXXX............... Environmental Consulting N *8999 Services, NEC (environmental
Services. consultants).
XXXX............... Other Scientific and N *8748 Business Consulting Services, NEC
Technical Consulting (economic, radio, and traffic
Services. consultants).
*8999 Services, NEC (nuclear
consultants, geologists,
physicists and actuarial
consulting).
XXX................ Scientific Research and ................ .................................
Development Services:.
XXXX............... Research and Development N *8731 Commercial Physical and
in the Physical and Biological Research (physical
Engineering Sciences. and engineering sciences).
*8733 Noncommercial Research
Organizations (physical and
engineering services).

[[Page 26594]]

XXXX............... Research and Development N *8731 Commercial Physical and
in the Life Sciences. Biological Research (life
sciences).
*8733 Noncommercial Research
Organizations (life sciences).
XXXX............... Research and Development N *8732 Commercial Economic,
in the Social Sciences Sociological, and Educational
and Humanities. Research (social sciences and
humanities).
*8733 Noncommercial Research
Organizations (social sciences
and humanities).
XXX................ Advertising and Related ................ .................................
Services:.
XXXX............... Advertising Agencies...... E 7311 Advertising Agencies.
XXXX............... Public Relations Services. E 8743 Public Relations Services.
XXXX............... Media Buying Agencies..... N *7319 Advertising, NEC (media buying
services).
XXXX............... Media Representatives..... E 7313 Radio, Television, and
Publishers' Advertising
Representatives.
XXXX............... Display Advertising....... N 7312 Outdoor Advertising Services.
*7319 Advertising, NEC (display
advertising, except outdoor).
XXXX............... Direct Mail Advertising... E 7331 Direct Mail Advertising Services.
XXXX............... Advertising Material N *7319 Advertising, NEC (advertising
Distributors. materials distributor).
XXXX............... Other Services Related to N *7319 Advertising, NEC (except media
Advertising. buying, display advertising,
except outdoor; and advertising
material distributors).
*5199 Nondurable Goods, NEC
(advertising specialities goods
distributors).
XXX................ Other Professional,
Scientific and Technical
Services:
XXXX............... Market Research and Public N *8732 Commercial Economic,
Opinion Polling. Sociological, and Educational
Research (market research and
opinion research).
XXXX............... Photography Services:
XXXXX.............. Photography Studios, E 7221 Photographic Studios, Portrait.
Portrait.
XXXXX.............. Commercial Photography... R 7335 Commercial Photography.
*8099 Health and Allied Services, NEC
(medical photography).
XXXX............... Translation and N *7389 Business Services, NEC
Interpretation Services. (translation and interpretation
services).
XXXX............... Veterinary Services....... E 0741 Veterinary Services for
Livestock.
*0742 Veterinary Services for Animal
Specialties
XXXX............... All Other Professional, N 7389 Business Services, NEC
Scientific and Technical (appraisers, except insurance
Services.. and real estate, and
miscellaneous professional,
scientific, and technical
services).
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; L--null industry for the U.S.; N--new
industry; R--revised industry; and * means ``part of''. The abbreviation NEC is used for Not Elsewhere
Classified.

[[Page 26595]]

7379.................................... Computer Related Services, NEC:
Computer Systems Consultants.. Systems Design Services (pt.).
Except Computer Systems Other Computer Systems Design and
Consultants. Related Services.
[email protected] Business Services, Not Elsewhere
Classified:
Process Services, Patent Other Legal Services.
Agents, Notaries Public and
Paralegal Services.
Mapmaking Services............ Surveying and Mapping Services
(pt.).
Interior Design............... Interior Design Services.
Industrial Design............. Industrial Design Services.
Drafting Service.............. Drafting Services.
Fashion, Furniture and Other All Other Design Services.
Design Services.
Translation and Interpretation Translation and Interpretation
Services. Services.
Home and Building Inspection Building Inspection Services.
Services.
Appraisers, Except Insurance All Other Professional, Scientific
and Real Estate, and Technical Services.
Miscellaneous Professional,
Scientific, and Technical
Services.
7819.................................... Services Allied to Motion
Picture Production:
Talent Payment Services....... Payroll Services (pt.).
8099.................................... Health and Allied Services, NEC:
Medical Artists............... Graphic Design Services (pt.).
Medical Photography........... Commercial Photography (pt.).
8111.................................... Legal Services.................. Offices of Lawyers.
8711.................................... Engineering Services............ Engineering Services.
8712.................................... Architectural Services.......... Architectural Services.
8713.................................... Surveying Services:
Except Geophysical Surveying.. Surveying and Mapping Services
(pt.).
Geophysical Surveying Services Geophysical Surveying Services.
[email protected] Accounting, Auditing, and
Bookkeeping Services:
Certified Public Accountants.. Offices of Certified Public
Accountants.
Accountants, Except Certified Offices of Accountants, except
Public Accountants. Certified.
Payroll Services.............. Payroll Services.
[email protected] Commercial Physical and
Biological Research:
Physical and Engineering Research and Development in the
Sciences. Physical and Engineering Sciences
(pt.).
Life Sciences................. Research and Development in the Life
Sciences (pt).
[email protected] Commercial Economic,
Sociological, and Educational
Research:
Social Sciences and Humanities Research and Development in the
Social Sciences and Humanities
(pt.).
Market Research and Opinion Market Research and Public Opinion
Research. Polling.
[email protected] Noncommercial Research
Organizations:
Physical and Engineering Research and Development in the
Services. Physical and Engineering Sciences
(pt.).
Life Sciences................. Research and Development in the Life
Sciences (pt.).
Social Sciences and Humanities Research and Development in the
Social Sciences and Humanities
(pt.).
8734.................................... Testing Laboratories............ Testing Laboratories.
[email protected] Management Consulting Services:
Administrative Management and Administrative and General
General Management Consulting. Management Consulting.
Human Resources and Personnel Human Resources Consulting (pt.).
Management Consulting.
Marketing Consulting.......... Marketing Consulting.
Manufacturing Management, Process, Physical, Distribution, and
Physical Distribution, and Logistics Consulting.
Site Location Consulting.
8743.................................... Public Relations Services....... Public Relations Services.
[email protected] Business Consulting Services,
Not Elsewhere Classified:
Planners of Land Use.......... Land Use Planners Services.
Safety Consulting............. Other Management Consulting
Services.
Economic Consultants, Radio Other Scientific and Technical
Consultants, Traffic Consulting Services (pt.).
Consultants.
[email protected] Services, NEC:
Nuclear Consultants, Other Scientific and Technical
Consulting Geologists, Consulting Services (pt.).
Consulting Physicists, and
Actuarial Consulting.
Environmental Consultants..... Environmental Consulting.
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of''. @ means time series break has been created that is greater than 3% of
the 1992 revenues for the 1987 SIC Industry. The abbreviation NEC is used for Not Elsewhere Classified.

[[Page 26596]]

Description of Changes to the U.S. System

Forty-eight U.S. industries are included in the NAICS Professional,
Scientific, and Technical Services subsector. Thirty-one of these are
new industries (Offices of Notaries, as defined, do not exist in the
U.S.); four are revised 1987 SIC industries; and 13 are industries that
existed in 1987. The primary focus of this subsector is to group
together establishments that make available the particular knowledge,
expertise or skills of their employees to a wide range of business and
individual clients. The activities included here can be utilized
throughout all sectors of the economy. Other activities that do not
meet this criteria are generally included in the particular subsector
they serve. The industries within this subsector have similar
production processes. The changes also help to better achieve
comparability with Mexico and Canada. The following new industries were
added for 1997:
Other Legal Services from part of 1987 SIC 7389, Business Services,
NEC.
Offices of Certified Public Accountants from part of 1987 SIC 8721,
Accounting, Auditing, and Bookkeeping Services.
Offices of Accountants, Except Certified from part of 1987 SIC
8721, Accounting, Auditing, and Bookkeeping Services.
Bookkeeping and Billing Services from part of 1987 SIC 8721,
Accounting, Auditing, and Bookkeeping Services.
Payroll Services from part of 1987 SIC 7819, Service Allied to
Motion Picture Production, and part of 1987 SIC 8721, Accounting,
Auditing, and Bookkeeping Services.
Drafting Services from part of 1987 SIC 7389, Business Services,
NEC.
Building Inspection Services from part of 1987 SIC 7389, Business
Services, NEC.
Surveying and Mapping Services from part of 1987 SIC 8713,
Surveying Services, and part of 1987 SIC 7389, Business Services, NEC.
Geophysical Surveying Services from part of 1987 SIC 8713,
Surveying Services.
Interior Design Services from part of 1987 SIC 7389, Business
Services, NEC.
Industrial Design Services from part of 1987 SIC 7389, Business
Services, NEC.
Land Use Planners Services from part of 1987 SIC 8748, Business
Consulting Services, NEC.
All Other Design Services from part of 1987 SIC 7389, Business
Services, NEC.
Systems Design Services from 1987 SIC 7373, Computer Integrated
Systems Design, and part of 1987 SIC 7379, Computer Related Services,
NEC.
Administrative and General Management Consulting from part of 1987
SIC 8742, Management Consulting Services.
Human Resources Consulting from part of 1987 SIC 8742, Management
Consulting Services, and part of 1987 SIC 7361, Employment Agencies.
Marketing Consulting from part of 1987 SIC 8742, Management
Consulting Services.
Process, Physical Distribution, and Logistics Consulting from part
of 1987 SIC 8742, Management Consulting Services.
Other Management Consulting Services from part of 1987 SIC 4731,
Arrangement of Transportation of Freight and Cargo, and part of 1987
SIC 8748, Business Consulting Services, NEC.
Environmental Consulting from part of 1987 SIC 8999, Services NEC.
Other Scientific and Technical Consulting Services from part of
1987 SIC 8748, Business Consulting Services, NEC, and part of 1987 SIC
8999, Services, NEC.
Research and Development in the Physical and Engineering Sciences
from part of 1987 SIC 8731, Commercial Physical and Biological
Research, and part of 1987 SIC 8733, Noncommercial Research
Organizations.
Research and Development in the Life Sciences from part of 1987 SIC
8731, Commercial Physical and Biological Research, and part of 1987 SIC
8733, Noncommercial Research Organizations.
Research and Development in the Social Sciences and Humanities from
part of 1987 SIC 8732, Commercial Economic, Sociological, and
Educational Research, and part of 1987 SIC 8733, Noncommercial Research
Organizations.
Media Buying Agencies from part of 1987 SIC 7319, Advertising, NEC.
Display Advertising from 1987 SIC 7312, Outdoor Advertising
Services, and part of 1987 SIC 7319, Advertising, NEC.
Advertising Material Distributors from part of 1987 SIC 7319,
Advertising, NEC.
Other Services Related to Advertising from part of 1987 SIC 5199,
Nondurable Goods, NEC, and part of 1987 SIC 7319, Advertising, NEC.
Market Research and Public Opinion Polling from part of 1987 SIC
8732, Commercial Economic, Sociological, and Educational Research.
Translation and Interpretation Services from part of 1987 SIC 7389,
Business Services, NEC.
All Other Professional, Scientific and Technical Services from part
of 1987 SIC 7389, Miscellaneous Business Services.
The following four NAICS industries were modified from their 1987
definitions:
Testing Laboratories from 1987 SIC 8734, Testing Laboratories. This
industry was modified by moving veterinary laboratories to the Support
Services for Agriculture subsector. This move was made to improve
comparability with Canada and Mexico and because the production process
of this type of laboratory was so different from the others that are
included.
Graphic Design Services from 1987 SIC 7336, Commercial Art and
Graphic Design, and part of 1987 SIC 8099, Health and Allied Services,
NEC. Medical artists of 1987 SIC 8099 were combined here because of the
similarity of the production process with graphic designers and to
improve comparability with Mexico and Canada.
Other Computer Systems Design and Related Services from part of
1987 SIC 7379, Computer Related Services, NEC. This industry was
modified by moving computer systems consultants to NAICS industry
Systems Design Services to improve comparability with Mexico and
Canada.
Commercial Photography from 1987 SIC 7335, Commercial Photography,
and from part of 1987 SIC 8099, Health and Allied Services, NEC.
Medical photography from 1987 SIC 8099 was combined with commercial
photography because of the similarity of their production processes.

Part VII--Proposed New Industry Structure for Performing Arts,
Spectator Sports and Related Industries; Museums, Historical Sites and
Similar Institutions; and Recreation, Amusement and Gambling

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 17

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following industries:

Performing Arts, Spectator Sports and Related Industries
Museums, Historical Sites and Similar Institutions
Recreation, Amusement and Gambling

[[Page 26597]]

shared among the countries and additional discussions will be held
before a final decision on the structure is made. Each country may add
additional detailed industries, below the 4-digit level of NAICS, as
necessary to meet national needs, so long as this additional detail
aggregates to a 4-digit NAICS level in order to ensure full
comparability among the three countries. This NAICS structure was
presented and provisionally accepted at the NAICS Committee meeting
held on September 27, 1995-September 29, 1995 in Mexico City, Mexico.

Attachment 1--NAICS Structure

XX Performing Arts, Spectator Sports and Related Industries
XXX Performing Arts Companies
XXXX Theater Companies
XXXX Dance Companies
XXXX Musical Groups and Artists
XXXX Other Performing Arts Companies
XXX Spectator Sports
XXXX Spectator Sports
XXX Promoters of Arts, Sports and Similar Events
XXXX Promoters of Arts, Sports and Similar Events with Facilities
XXXX Promoters of Arts, Sports and Similar Events without
Facilities
XXX Agents and Managers for Artists, Athletes and Other
Entertainers
XXXX Agents and Managers for Artists, Athletes and Other
Entertainers
XXX Independent Artists, Writers and Performers
XXXX Independent Artists, Writers and Performers
XX Museums, Historical Sites and Similar Institutions
XXX Museums, Historical Sites and Similar Institutions
XXXX Museums
XXXX Historical Sites
XXXX Botanical and Zoological Gardens
XXXX Nature Parks and Similar Institutions
XX Recreation, Amusement and Gambling Industries
XXX Sports and Recreation Facilities
XXXX Golf Courses
XXXX Skiing Facilities
XXXX Marinas
XXXX Recreational, Sports and Fitness Centers
XXXX Bowling Centers
XXX Amusement Facilities
XXXX Amusement and Theme Parks
XXXX Amusement Arcades and Other Coin-operated Amusement Devices
XXX Gambling Industries
XXXX Casinos, except Hotel Casinos
XXXX Other Gambling Industries
XXX Other Recreation and Amusement Services
XXXX Other Recreation and Amusement Services

Attachment 2--North American Industrial Classification System

Draft Classification for:

Performing Arts, Spectator Sports and Related Industries
Museums, Historical Sites and Similar Institutions
Recreation, Amusement and Gambling Industries

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industry classification for these
industries.
The draft classification contains three subsectors, Performing
Arts, Spectator Sports and Related Industries; Museums, Historical
Sites and Similar Institutions; and Recreation, Amusement and Gambling
Industries. These are further subdivided into ten industry groups and
twenty-three industries.

A General Outline

The Performing Arts, Spectator Sports and Related Industries
subsector includes establishments that produce or organize live
presentations involving the performances of actors and actresses,
singers, dancers, musical groups and artists, athletes and other
entertainers. It also includes independent entertainers and the
establishments that manage their careers. The classification recognizes
four basic processes: producing events; presenting and promoting
events; managing and representing entertainers; and finally, providing
the artistic, creative and technical skills necessary to the production
of these live events. Four industries are proposed for performing arts,
each defined on the basis of the particular skills of the entertainers
involved in the presentations. Promoters that own and operate their
facilities are distinguished from those that do not, thereby
emphasizing significant differences in cost structures.
The proposed structure makes a clear distinction between performing
arts companies and performing artists (independents). Although not
unique to arts and entertainment, freelancing is a particularly
important phenomenon in the Performing Arts, Spectator Sports, and
Related Industries subsector. Distinguishing this activity from the
production activity is a meaningful process differentiation. This
approach, however, is difficult to implement in the case of musical
groups (companies) and artists, especially pop groups. These
establishments tend to be more loosely organized and it can be
difficult to distinguish companies from freelancers. For those reasons,
NAICS includes one industry that covers both musical groups and musical
artists.
The proposed NAICS structure contains two industries for Promoters
of Arts, Sports and Similar Events, one for those that operate
facilities and another for those that do not. It is therefore necessary
for users interested in information by type of event (e.g. performing
arts as opposed to sports) to rely on product data.
The Museums, Historical Sites and Similar Institutions subsector
includes establishments engaged in the preservation and exhibition of
objects, sites and natural wonders of historical, cultural and
educational value. The four industries of this subsector are Museums;
Historic Sites; Botanical and Zoological Gardens; and Nature Parks and
Similar Institutions.
The Recreation, Amusement and Gambling Industries subsector
comprises three industry groups. The Sports and Recreation Facilities
industry group includes establishments that operate and provide access
to facilities where patrons can actively participate in sports and
recreational activities. The six industries of this industry group
represent the most important types of facilities found in North
America. The Amusement Facilities industry group contains
establishments that operate and provide access to sites and facilities
primarily used for amusement purposes. Finally, the Gambling Industries
industry group includes operators of casinos, lotteries, bingo halls
and other establishments primarily engaged in gambling activities.

Limitations and Constraints of the Classification

The most important limitation of the proposed structure is the
incomplete coverage of recreational activities.
Providers of recreational services are often engaged in processes
classified in other sectors of NAICS. For example, operators of resorts
and hunting and fishing camps provide both accommodation and
recreational facilities and services. It is proposed to classify these
establishments in the Accommodation Services subsector, partly to
reflect the significant costs associated with the provision of
accommodation services and partly to ensure consistency with
international standards. Similarly, some night clubs present live
entertainment on a regular basis and it can be argued that they could
be classified in the Promoters of Arts, Sports and Similar Events With
Facilities industry. However, since most

[[Page 26598]]

of these establishments function as any other drinking place when they
do not stage entertainment and furthermore because most of their
revenue is derived from sale of food and beverages, it is proposed to
classify them with other drinking places. Finally, establishments using
transportation equipment to provide sightseeing and pleasure cruises
are classified in the Transportation sector.
The proposed Gambling Industries group does not provide for full
coverage of gambling activities. It only includes those establishments
specializing in such activities. Casino hotels are classified in the
Accommodation Services subsector while horse and dog racing tracks are
classified in the Spectator Sports industry group.

Relationship to ISIC

Each of the NAICS industries created in these subsectors can be
assigned to a division of the current International Standard Industrial
Classification of all Economic Activities (ISIC, Revision 3) of the
United Nations. Nineteen of the twenty-four proposed industries are
contained within ISIC Division 92, Recreational, Cultural, and Sporting
Activities. The five industries not in ISIC Division 92 are small
pieces of ISIC Division 60, Land Transport, Transport Via Pipelines;
ISIC Division 63, Supporting and Auxiliary Transport Activities,
Activities of Travel Agencies; ISIC Division 70, Real Estate
Activities; and ISIC Division 74, Other Business Activities. The
discrepancies between these proposed NAICS industries and ISIC are
minor and do not have a significant impact on the comparability of the
data.

Some Changes to the National Classifications

For Canada, the proposed NAICS structure constitutes a
restructuring and expansion of industries currently found in major
group 96, Amusement and Recreational Service Industries, of the 1980
Canadian Standard Industrial Classification (CSIC). A few activities
classified in other areas of the classification are now included in
this structure and industry groups CSIC 961, Motion Picture, Audio and
Video Production and Distribution, and CSIC 962, Motion Picture
Exhibition are moved to the proposed Information sector.
The activities included in the Performing Arts Companies industry
group are all part of CSIC 9631, Entertainment Production Companies,
except for circuses (CSIC 9692) and dinner theaters (CSIC 9211). The
remaining components of CSIC 9631, Promoters of Artistic Events and
Independent Artists, are assigned to different NAICS industries.
The NAICS Spectator Sports industry corresponds to CSIC 964,
Commercial Spectator Sports, except for promoters of sports events that
are now classified in a newly created industry group for Promoters
(presenters) of Arts, Sports and Similar Events.
In the CSIC, promoters are closely associated to the type of event
they are promoting (arts, sports, fairs, etc.) and are classified in
different industries. The approach adopted for NAICS, that of combining
all promoters in the same group, therefore represents a significant
change to the current practice.
A similar approach is proposed for Agents and Managers for Artists,
Athletes and Other Entertainers and for Independent Artists, Writers
and Performers. Agents and managers, currently classified in arts,
sports or business service depending on the type of client they
represent, are grouped in a single NAICS industry. Similarly,
independent artists, writers and performers, currently found in four
industries, are combined in one class.
The Museums, Historical Sites and Similar Institutions industry
group includes activities that are classified in Education (Museums,
Heritage and Historic Sites) and Amusement and Recreation (botanical
gardens, zoological gardens, nature parks, exhibition centers, etc.).
Three of the five industries proposed for the operators of Sports
and Recreational Facilities industry group already exist in the CSIC.
The most significant change in this area is the adoption of a
Recreational, Sports and Fitness Centers industry that includes
components of three existing classes, namely, CSIC 9652, Curling clubs;
CSIC 9659, Other Sports and Recreation Clubs; and CSIC 9799, Other
Personal and Household Services.
Finally, the proposed Gambling Industries categories are components
of CSIC 9961, Gambling Industries. At the national level, an additional
industry will be created for Lotteries.
For Mexico, the contents of these subsectors essentially stem from
the CMAP subsector 94, Entertainment, Culture, Recreation and Sports,
although an important restructuring has occurred. In addition, some
classes of CMAP subsector 94 related to motion pictures, radio and
television went into the proposed NAICS Information sector, and those
related to the teaching of gymnastics and martial arts moved to the
proposed NAICS Education Services subsector.
In order to accommodate this proposed structure of new subsectors,
Mexico included some activities from other subsectors such as tour
guide services, marinas, and the retail sale of lottery tickets.
For the United States, the proposed NAICS structure represents a
significant change from the current Standard Industrial Classification
System (SIC) system. The NAICS industries are more clearly defined than
those in the current system and ambiguous distinctions such as
``membership'' criteria have been eliminated in NAICS industries.
New industries are established for various types of performing arts
companies, spectator sports, museums, historical sites and similar
institutions, gambling services and operators of sports and recreation
facilities. Overall, there are nine new industries in the NAICS
structure for amusement, recreation, museums and botanical and
zoological gardens.
Separate industries are established for promoters of events, agents
and managers of artists, athletes, and entertainers, as well as a new
industry for artists and entertainers who normally work independently
or on a contract basis. These types of establishments are included in
many different industries in the SIC system, including some in 1987 SIC
8999, Services, Not Elsewhere Classified (NEC), as well as in other NEC
categories, such as 1987 SIC 7999, Amusement and Recreation Services,
Not Elsewhere Classified.
The ``not elsewhere classified (NEC)'' industries in the 1987 SIC
system are significantly reduced in NAICS, because many types of
establishments in this category are assigned to more specific, process-
based categories.

Achievement of Objectives

The proposed classification structure meets the objectives for the
North American Industry Classification System (NAICS). It is comprised
of industries that group establishments with similar production
processes, that is, it applies the production oriented economic
concept. The hierarchical structure of the classification generally
follows the production concept at each level.
The classification achieves comparability for the three
participating countries. Based on existing data, each country expects
to be able to publish data regularly or in the near future at the
industry (4-digit) level of this structure. All countries agree on the
definitions of the industries.
Other objectives of the NAICS project have also been met. The
inclusion of

[[Page 26599]]

new and emerging services industries are introduced in this proposed
structure. These classifications reflect changes in the arts,
entertainment, and recreation industries that have occurred in the past
but have never been identified in the existing classification systems
of the three countries.
The industries in most cases are economically significant in all
three countries. Smaller industries are present because comparability
is given priority over size.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the three NAICS industry
subsectors presented in Part VII, Section A--Attachment 1, contain less
detail than is currently in the U.S. SIC system, and less detail than
is required to meet important analytical requirements in the U.S. The
three country agreement on NAICS envisions that each country may
develop national detailed industries below the NAICS industry level, so
long as the national detail can be aggregated to the NAICS
classification, thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the three
NAICS industry subsectors covered in Part VII of this notice. For cases
where no 5-digit detail is shown, the ECPC is proposing that the NAICS
4-digit industries will also represent the most detailed U.S.
industries.

Table 1
----------------------------------------------------------------------------------------------------------------
1987
1997 NAICS and U.S. Status code SIC 1987 SIC description
description code
----------------------------------------------------------------------------------------------------------------
XX................. Performing Arts, Spectator
Sports and Related
Industries:
XXX................ Performing Arts Companies:
XXXX............... Theater Companies......... N *5812 Eating Places (dinner theaters).
................ *7922 Theatrical Producers (except
Motion Pictures) and
Miscellaneous Theatrical
Services (theater companies,
opera companies).
XXXX............... Dance Companies........... N *7922 Theatrical Producers (except
Motion Pictures) and
Miscellaneous Theatrical
Services (ballet and dance
companies).
XXXX............... Musical Groups and Artists N *7929 Bands, Orchestras, Actors, and
Entertainment Groups (musical
groups and artists).
XXXX............... Other Performing Arts N *7929 Bands, Orchestras, Actors, and
Companies. Entertainment Groups (except
musical groups and artists).
................ *7999 Amusement and Recreation
Services, Not Elsewhere
Classified (circus companies).
XXX................ Spectator Sports:
XXXX............... Spectator Sports:
XXXXX.............. Sports Clubs............. N *7941 Professional Sports Clubs and
Promoters (professional sports
clubs).
XXXXX.............. Race Tracks.............. N *7948 Racing, Including Track
Operations (track operations).
XXXXX.............. Other Spectator Sports... N *7941 Professional Sports Clubs and
Promoters (except sports clubs,
stadium operators, sports
promoters and agents).
................ *7948 Racing, Including Track
Operations (except track
operators).
................ *7999 Amusement and Recreation
Services, NEC (professional
athletes).
XXX................ Promoters of Arts, Sports
and Similar Events:
XXXX............... Promoters of Arts, Sports N *6512 Operators of Nonresidential
and Similar Events with Buildings (stadium and arena
Facilities. owners).
................ *7922 Theatrical Procedures (except
Motion Pictures) and
Miscellaneous Theatrical
Services (theater operators).
................ *7941 Professional Sports Clubs and
Promoters (stadium operators).
XXXX............... Promoters of Arts, Sports N *7922 Theatrical Producers (except
and Similar Events Motion Pictures) and
without Facilities. Miscellaneous Theatrical
Services (theatrical promoters).
................ *7941 Professional Sports Clubs and
Promoters (sports promoters).
XXX................ Agents and Managers for
Artists, Athletes and
Other Entertainers:
XXXX............... Agents and Managers for N *7389 Business Services, NEC (agents
Artists, Athletes, and and brokers for authors and
Other Entertainers. artists).
................ *7922 Theatrical Producers (except
Motion Pictures) and
Miscellaneous Theatrical
Services (theatrical agents).
................ *7941 Professional Sports Clubs and
Promoters (sports agents).
XXX................ Independent Artists,
Writers, and Performers:
XXXX............... Independent Artists, N *7819 Services Allied to Motion Picture
Writers, and Performers. Production (film directors and
related motion picture
production services,
independent).
................ *7929 Bands, Orchestras, Actors, and
Other Entertainers and
Entertainment Services (actors
and actresses).
................ *8999 Services, Not Elsewhere
Classified (authors, artists,
and related technical services
independent).
XX................. Museums, Historical Sites and
Similar Institutions:
XXX................ Museums, Historical Sites
and Similar Institutions:
XXXX............... Museums................... R *8412 Museums and Art Galleries (except
historic and heritage sites).
XXXX............... Historical Sites.......... N *8412 Museums and Art Galleries
(historic and heritage sites).

[[Page 26600]]

XXXX............... Botanical and Zoological R *8422 Arboreta and Botanical and
Gardens. Zoological Gardens (except
nature parks and reserves).
XXXX............... Nature Parks and Similar N *7999 Amusement and Recreation
Institutions. Services, NEC (caverns and
miscellaneous commercial parks).
................ *8422 Arboreta and Botanical and
Zoological Gardens (nature parks
and reserves).
XX................. Recreation, Amusement and
Gambling Industries:
XXX................ Operators of Sports and
Recreation Facilities:
XXXX............... Golf Courses.............. N 7992 Public Golf Courses.
................ *7997 Membership Sports and Recreation
Clubs (golf clubs).
XXXX............... Skiing Facilities......... N *7999 Amusement and Recreation
Services, NEC (skiing
facilities).
XXXX............... Marinas................... E 4493 Marinas.
XXXX............... Recreational, Sports and N 7991 Physical Fitness Facilities.
Fitness Centers.
................ *7997 Membership Sports and Recreation
Clubs (recreation clubs with
facilities).
................ *7999 Amusement and Recreation
Services, NEC (nonmembership
recreation facilities).
XXXX............... Bowling Centers........... E 7933 Bowling Centers.
XXX................ Amusement Facilities:
XXXX............... Amusement and Theme Parks. E 7996 Amusement Parks.
XXXX............... Amusement Arcades and R *7993 Coin-Operated Amusement Devices
Other Coin Operated (except slot machine operators).
Amusement Devices.
XXX................ Gambling Industries:
XXXX............... Casinos, except Hotel N *7999 Amusement and Recreation
Casinos. Services, NEC (casinos, except
hotel casinos).
XXXX............... Other Gambling Industries. N *7993 Coin-Operated Amusement Devices
(slot machine operators).
................ *7999 Amusement and Recreation
Services, NEC (lottery, bingo,
bookie, and other gambling
operations).
XXX................ Other Recreation and
Amusement Services:
XXXX............... Other Recreation and N *7911 Dance Studios, Schools, and Halls
Amusement Services. (except instruction).
................ *7997 Membership Sports and Recreation
Clubs (recreation clubs without
facilities).
................ *7999 Amusement and Recreation
Services, NEC (except circuses,
professionals, athletes, caverns
and other commercial parks,
skiing facilities, casinos and
other gambling operations,
amusement and recreation
facilities, sports instruction,
sports equipment rental, and
amusement or scenic transport
operations).
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and
* means ``part of.'' The abbreviation NEC is used for Not Elsewhere Classified.

[[Page 26601]]

Theatrical Promoters.......... Promoters of Arts, Sports, and
Similar Events without Facilities
(pt.).
Theatrical Agents............. Agents and Managers for Artists,
Athletes, and Other Entertainers
(pt.).
[email protected] Bands, Orchestras, Actors, and
Other Entertainers and
Entertainment Groups:
Musical Groups and Artists, Musical Groups and Artists.
Orchestras.
Actors and Actresses.......... Independent Artists, Writers, and
Performers (pt.).
Except Musical Groups and Other Performing Arts Companies
Artists, Actors and (pt.).
Actresses:.
7933.................................... Bowling Centers................. Bowling Centers.
[email protected] Professional Sports Clubs and
Promoters:
Professional Sports Clubs..... Sports Clubs.
Sports Agents................. Agents and Managers of Artists,
Athletes, and other Entertainers
(pt.).
Sports Promoters.............. Promoters of Arts, Sports and
Similar Events without Facilities
(pt.).
Stadium Operators............. Promoters of Arts, Sports, and
Similar Events with Facilities
(pt.).
Except Sports Clubs, Stadium Other Spectator Sports (pt.).
Operators, Sports Promoters,
and Agents.
[email protected] Racing, Including Track
Operations:
Racetracks.................... Race Tracks.
Racing, except Track Operators Other Spectator Sports (pt.).
[email protected] Physical Fitness Facilities..... Recreational, Sports and Fitness
Centers (pt.).
[email protected] Public Golf Courses............. Golf Courses (pt.).
[email protected] Coin Operated Amusement Devices:
Except Gambling (Slot Machine) Amusement Arcades and Other Coin
Operators. Operated Amusement Devices.
Gambling (Slot Machine) Other Gambling Industries (pt.).
Operators.
7996.................................... Amusement Parks................. Amusement and Theme Parks.
[email protected] Membership Sports and Recreation
Clubs:
Golf Clubs.................... Golf Courses (pt.).
Recreation Clubs with Recreational Sports and Fitness
Facilities. Centers (pt.).
Recreation Clubs Without Other Recreation and Amusement
Facilities. Services (pt.).
[email protected] Amusement and Recreation
Services, NEC:
Circus Companies............. Other Performing Arts Companies
(pt.).
Professional Athletes......... Other Spectator Sports (pt.).
Skiing Facilities............. Skiing Facilities.
Nonmembership Recreation Recreation Sports and Fitness
Facilities. Centers (pt.).
Casinos, except Hotel Casinos. Casinos, except Hotel Casinos.
Lottery, Bingo, Bookie and Other Gambling Industries (pt.).
Other Gaming Operations.
Caverns and Miscellaneous Nature Parks and Similar
Commercial Parks. Institutions (pt.).
Sports Instruction............ Athletic Instruction (Included in
Educational Services subsector).
Sports Equipment Rental....... Rental of Recreation Goods (Included
in Rental and Leasing subsector).
Scenic Transport Operations, Scenic and Sightseeing
Land. Transportation, Land (Included in
Scenic and Sightseeing
Transportation subsector).
Scenic Transport Operations, Scenic and Sightseeing
Water. Transportation, Water (Included in
Scenic and Sightseeing
Transportation subsector.
Amusement and Recreation Other Recreation and Amusement
Services, NEC (except Services (pt.).
circuses, professional
athletes, caverns, and other
commercial parks, skiing
facilities, casinos and other
gambling operations,
amusement and recreation
facilities).
8412.................................... Museums and Art Galleries:
Museums...................... Museums.
Historical and Heritage Sites. Historical Sites.
8422.................................... Arboreta and Botanical or
Zoological Gardens:
Botanical and Zoological Botanical and Zoological Gardens.
Gardens.
Nature Parks and Reserves..... Nature Parks and Similar
Institutions (pt.).
8999.................................... Services, Not Elsewhere
Classified:
Authors, Artists, and Related Independent Artists, Writers, and
Technical Services, Performers (pt.).
Independent.
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means time series break has been created that is greater than 3%
of the 1992 revenues for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere Classified.

[[Page 26602]]

Description of Changes to the U.S. System

The industries included in the following subsectors were primarily
created from the twelve 1987 SICs of Major Group 79, Amusement and
Recreation Services. For time series linkage, a time series break
greater than three percent of their 1992 revenue is estimated for ten
of these industries.
1. Performing Arts, Spectator Sports and Related Industries--There
were eleven new industries added to the 1997 industry structure in this
subsector to group those activities with the same production process
and to improve overall comparability with Mexico and Canada. The
underlying focus of this subsector was to group together those
entertainment activities that are more visual and non-participatory.
The following new industries were created:
Theater Companies from part of 1987 SIC 5812, Eating Places, and
part of 1987 SIC 7922, Theatrical Producers (Except Motion Picture) and
Miscellaneous Theatrical Services.
Dance Companies from part of 1987 SIC 7922, Theatrical Producers
(Except Motion Picture) and Miscellaneous Theatrical Services.
Musical Groups and Artists from part of 1987 SIC 7929 Bands,
Orchestras, Actors, and Other Entertainers and Entertainment Groups.
Other Performing Arts Companies from part of 1987 SIC 7929, Bands,
Orchestras, Actors, and Other Entertainers and Entertainment Groups,
and part of 1987 SIC 7999, Amusement and Recreation Services, NEC.
Sports Clubs from part of 1987 SIC 7941, Professional Sports Clubs
and Promoters.
Race Tracks from part of 1987 SIC 7948, Racing, Including Track
Operation.
Other Spectator Sports from part of 1987 SIC 7941, Professional
Sports Clubs and Promoters; part of 1987 SIC 7948, Racing, Including
Track Operation; and part of 1987 SIC 7999, Amusement and Recreation
Services, NEC.
Promoters of Arts, Sports and Similar Events With Facilities from
part of 1987 SIC 6512, Operators of Nonresidential Buildings; part of
1987 SIC 7922, Theatrical Producers (Except Motion Picture) and
Miscellaneous Theatrical Services; and part of 1987 SIC 7941,
Professional Sports Clubs and Promoters.
Promoters of Arts, Sports and Similar Events without Facilities
from part of 1987 SIC 7922, Theatrical Producers (Except Motion
Picture) and Miscellaneous Theatrical Services, and part of 1987 SIC
7941, Professional Sports Clubs and Promoters.
Agents and Managers for Artists, Athletes and Other Entertainers
from part of 1987 SIC 7389, Business Services, NEC; part of 1987 SIC
7922, Theatrical Producers (Except Motion Picture) and Miscellaneous
Theatrical Services; and part of 1987 SIC 7941, Professional Sports
Clubs and Promoters.
Independent Artists, Writers, and Performers from part of 1987 SIC
7819, Services Allied to Motion Picture Production; part of 1987 SIC
7929, Bands, Orchestras, Actors, and other Entertainers and
Entertainment Groups; and part of 1987 SIC 8999, Services, NEC.
2. Museums, Historic Sites and Similar Institutions--The NAICS
industries within this subsector were essentially created from the two
industries of 1987 Major Group 84, Museums, Art Galleries, and
Botanical, and Zoological Gardens. Two new industries were added for
this 1997 industry subsector and two industries reflect content changes
from their 1987 definitions. These changes were made to better
represent the production process differences among these activities.
The following industries were added for 1997:
Historical Sites from part of 1987 SIC 8412, Museums and Art
Galleries.
Nature Parks and Similar Institutions from part of SIC 7999,
Amusement and Recreation Services, NEC; and part of 1987 SIC 8422,
Arboreta and Botanical or Zoological Gardens.
The following two industries represent content changes from 1987:
Museums from part of 1987 SIC 8412, Museums and Art Galleries.
Botanical and Zoological Gardens from part of 1987 SIC 8422,
Arboreta and Botanical Gardens.
3. Recreation, Amusement and Gambling Industries--This subsector
consists of 10 industries. Six new industries were added to the 1997
structure for this subsector, one industry represents a 1987 industry
with content changes, and three industries from 1987 were included
without any changes. The NAICS industries within this subsector
represent an effort to group those activities with the same production
process and to improve comparability with Mexico and Canada. The basis
for developing this subsector was to group together entertainment
activities that are participatory in nature and to eliminate industry
distinctions based on membership. The following new industries were
created:
Golf Courses from 1987 SIC 7992, Public Golf Courses, and part of
1987 SIC 7997, Membership Sports and Recreation Clubs.
Skiing Facilities from part of 1987 SIC 7999, Amusement and
Recreation Services, NEC.
Recreational, Sports and Fitness Centers from 1987 SIC 7991,
Physical Fitness Facilities; part of 1987 SIC 7997, Membership Sports
and Recreation Clubs; and part of 1987 SIC 7999, Amusement and
Recreation Services, NEC.
Casinos, Except Hotel Casinos from part of 1987 SIC 7999, Amusement
and Recreation Services, NEC.
Other Gambling Industries from part of 1987 SIC 7993, Coin-Operated
Amusement Devices, and part of 1987 SIC 7999, Amusement and Recreation
Services, NEC.
Other Recreation and Amusement Services from part of 1987 SIC 7911,
Dance Studios, Schools, and Halls; part of 1987 SIC 7997, Membership
Sports and Recreation Clubs; and part of 1987 SIC 7999, Amusement and
Recreation Services, NEC.
The following industry represents a change in content from 1987:
Amusement Arcades and Other Coin-Operated Amusement Devices from
part of 1987 SIC 7993, Coin-Operated Amusement Devices.

Part VIII--Proposed New Industry Structure for Information

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 18

This Document represents the proposed agreement for the North
American Industry Classification System (NAICS) on the boundaries of
the following sector and the 4-digit industries of which it is
composed:

Information, to be described as:
Information and Cultural Industries in Canada
Informacion en Medios Masivos in Mexico
Information in the United States

It also displays an aggregation structure that is accepted by all
three countries, along with a brief description of the structure and
its details (Attachments 1 and 2).
Each country agrees to release a copy of the proposed NAICS
structure to interested data users. Comments received will be shared
among the countries and additional discussions will be held before a
final decision on the structure is made. Each country may add
additional detailed industries, below the 4-digit level of NAICS, as
necessary to meet national needs, so

[[Page 26603]]

long as this additional detail aggregates to a 4-digit NAICS level in
order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on September 27, 1995-September 29, 1995 in
Mexico City, Mexico.

------------------------------------------------------------------------
Accepted Signature Date
------------------------------------------------------------------------
Canada.............................. /S/ Jacob Ryten........ 9/29/95
Mexico.............................. /S/ Enrique Ordaz...... 9/29/95
United States ...................... /S/ Jack E. Triplett... 9/29/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX Publishing
XXX Newspaper, Periodical, Book, and Data Base Publishing
XXXX Newspaper Publishing
XXXX Periodical Publishing
XXXX Book Publishing
XXXX Database Publishing
XXXX Other Publishing
XXX Software Publishing
XXXX Software Publishing
XX Motion Picture and Sound Recording
XXX Motion Picture and Video Industries
XXXX Motion Picture and Video Production
XXXX Motion Picture and Video Distribution
XXXX Teleproduction and Other Post-Production Services
XXXX Motion Picture and Video Exhibition
XXXX Other Motion Picture and Video Industries
XXX Sound Recording Industries
XXXX Record Production Companies
XXXX Integrated Record Companies
XXXX Music Publishing
XXXX Sound Recording Studios
XXXX Other Sound Recording Industries
XX Broadcasting and Telecommunications
XXX Radio and Television Broadcasting
XXXX Radio Broadcasting
XXXX Television Broadcasting
XXX Cable Networks and Program Distribution
XXXX Cable Networks
XXXX Cable and Program Distribution
XXX Telecommunications
XXXX Wired Telecommunications Carriers
XXXX Wireless Telecommunications Carriers, Except Satellite
XXXX Telecommunications Resellers
XXXX Satellite Telecommunications
XXXX Other Telecommunications
XX Information Services and Data and Transaction Processing
XXX Information Services
XXXX News Syndicates
XXXX Libraries and Archives
XXXX Other Information Services
XXX Data and Transaction Processing
XXXX Data and Transaction Processing

Attachment 2--North American Industry Classification System

Draft Classification For:

Information and Cultural Industries in Canada
Information en Medios Masivos in Mexico
Information in the United States

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industry classification for these
industries.
The draft classification includes four subsectors, Publishing;
Motion Picture and Sound Recording; Broadcasting and
Telecommunications; and Information Services and Data and Transaction
Processing Services. These are further subdivided into 9 industry
groups and 29 industries.

A General Outline

The expressions ``information age'' and ``global information
economy'' are used with considerable frequency today. The general idea
of an ``information economy'' includes both the notion of industries
primarily producing, processing, and distributing information, as well
as the idea that every industry is using available information and
information technology to reorganize and make themselves more
productive.
For the purpose of developing NAICS, it is the transformation of
information into a commodity that is produced, manipulated and
distributed by a number of growing industries that is at issue. The
proposed Information sector groups three types of establishments: those
engaged in producing, manipulating and distributing information and
cultural products; those that provide the means to transmit or
distribute these products as well as data or communications; and those
that process data or transactions. (Cultural products are those that
directly express attitudes, opinions, ideas, values, and artistic
creativity; provide entertainment; or offer information and analysis
concerning the past and present. Included in this definition are
popular, mass-produced, products as well as cultural products that
normally have a more limited audience, such as poetry books, literary
magazines or classical records.) These activities are currently
classified throughout the existing national classifications;
traditional publishing is in manufacturing, broadcasting in
communications, software production in business services, film
production in amusement services, etc.
The unique characteristics of information and cultural products,
and of the processes involved in their production and distribution,
justify the creation of an Information sector, distinct from the goods-
producing and service-producing sectors. Some of these characteristics
are:
1. Unlike traditional goods, an ``information or cultural product''
such as a newspaper or television program does not necessarily have
tangible qualities, nor is it necessarily associated with a particular
form. A movie can be shown at a movie theater, on a television
broadcast, through video on demand or rented at a local video store. A
sound recording can be aired on radio, embedded in multi-media products
or sold at a record store.
2. Unlike traditional services, the delivery of these products does
not require direct contact between the supplier and the consumer.
3. The value of these products to the consumer does not lie in
their tangible qualities but in their information, educational,
cultural or entertainment content.
4. Unlike goods or services, information and cultural products can
be copied easily. The law has long recognized this; copyright law
protects the intangible property of intellectual creations such as
books and sound recordings. Copyright applies to all original literary,
dramatic, musical, and artistic works, including databases and computer
programs.
5. The intangible property aspect of information and cultural
products makes the processes involved in their production and
distribution very different from goods and services. Only those
possessing the rights to these works are authorized to reproduce,
alter, improve and distribute them. Acquiring and using these rights
often involves significant costs. In addition, technology is
revolutionizing the distribution of these products. It is possible to
distribute them in a physical form, via broadcast or on line.
6. Distributors of information and cultural products can easily add
value to the products they distribute. For instance, broadcasters add
advertising not contained in the original product. This capacity means
that unlike traditional distributors, they derive revenue not from sale
of the distributed product to the final consumer, but from those who
pay for the privilege of adding information to the original product.
Similarly, a CD-ROM publisher can acquire the rights to thousands of
previously published newspaper and periodical articles and add new
value by providing search and software and organizing the information
in a way that facilitates research and retrieval. These products often
command a much higher price than the original information.

[[Page 26604]]

The distribution modes for information commodities may either
eliminate the necessity for traditional manufacture, or reverse the
conventional order of manufacture-distribute: A newspaper distributed
on line, for example, can be printed locally or by the final consumer.
Similarly, it is anticipated that packaged software, which today is
mainly bought through the traditional retail channels, will soon be
available mainly on line. The NAICS Information sector is designed to
make such economic changes transparent as they occur, or to facilitate
designing surveys that will monitor the new phenomena and provide data
to analyze the changes. Other classification systems tend to obscure
economic changes of this kind.
Many of the industries in the NAICS information sector are engaged
in producing and manipulating products protected by copyright law, or
in distributing them (other than distribution by traditional wholesale
and retail methods). Examples are traditional publishing industries,
software and database publishing industries and film and sound
industries. Broadcasting and telecommunication industries, and
information providers and processors, are also included in the
information sector, because their technologies are so closely linked to
other industries in the information sector.
Although many new industries have been created for this sector,
most of the activities it contains have existed for some time and are
distributed throughout the existing classifications. The following
paragraphs provide a brief description of the individual components of
this sector.
The Publishing subsector groups establishments engaged in the
publishing of newspapers, periodicals, and books, as well as database
and software publishing. In general, publishers issue copies of works
for which they possess copyright for sale to the general public, in one
or more formats including traditional print form, CD-ROM or on line.
Publishers may publish works originally created by others for which
they have obtained the rights, and/or works that they have created in-
house.
In most other classification systems, publishing is treated as a
subsidiary activity to a manufacturing activity--book and newspaper
publishing, for example, are depicted as subsidiary activities to
printing, and placed with printing in the classification. In NAICS,
publishing--the reporting, writing, editing, and other processes that
are required to create an edition of a newspaper, for example--is
treated as a major economic activity in its own right, and classified
in the Information sector, whereas printing remains in the NAICS
Manufacturing sector. In part, the NAICS classification reflects the
fact that publishing increasingly takes place in establishments that
are physically separate from the associated printing establishments.
More crucially, the NAICS classification of book and newspaper
publishing is intended to portray their roles in a modern economy, in
which they do not resemble manufacturing activities.
Software publishing is included here because the activity--creation
of a copyrighted product and bringing it to market--is equivalent to
the creation process for other types of intellectual products.
Reproduction of pre-packaged software is treated in NAICS as a
manufacturing activity; on-line distribution of software products is in
the Information sector, and custom design of software to client
specifications remains in business services. These distinctions arise
because of the different ways that software is created, reproduced, and
distributed.
The Motion Picture and Sound Recording subsector groups
establishments involved in the production and distribution of motion
pictures and sound recordings (those involved exclusively in the
wholesaling of sound recordings are classified in Wholesale Trade).
While motion picture and sound recordings are also ``published,'' the
processes involved are sufficiently different from those traditional
publishing industries to warrant placing them in the Motion Picture and
Sound Recording subsector. The production and distribution of these
products involves a complex process and several distinct industries.
The Motion Picture and Video Industries industry group includes
separate industries for Motion Picture and Video Production, Motion
Picture and Video Distribution, Teleproduction and Other Post-
Production Services, Motion Picture and Video Exhibition, and Other
Motion Picture and Video Industries. The distribution industry includes
establishments primarily engaged in acquiring the distribution rights
(major input) for films and programs, and charging such clients as
movie theaters and broadcasters to show them; those engaged in
wholesaling videos to retail stores and rental outlets are classified
in Wholesale Trade.
The Sound Recording Industries industry group contains new classes
for Record Production Companies, Integrated Record Companies, Music
Publishing, Sound Recording Studios, and Other Sound Recording
Industries. Record production companies are primarily engaged in
searching out, identifying and contracting artists for which they
arrange and finance the production of master tapes for which they hold
the reproduction rights. Establishments in this industry do not own
duplication facilities or have distribution capabilities, so they
commercialize these rights through leasing/licensing agreements with
third parties. Integrated record production companies (major record
labels) integrate the production, manufacturing and/or distribution
functions, commercializing reproduction rights through these vertically
integrated operations. While establishments engaged in record
production derive most of their revenues from leasing/licensing the
reproduction rights of master recordings and from mechanical royalties,
integrated record companies derive most of their revenues from the
exploitation of their rights to distribute duplicate sound recordings.
The industrial structure proposed for this area is a major revision of
existing classifications; the purpose of this restructuring is to
reflect the actual activity structure of the sound recording industry,
which is not well articulated in current classifications.
The structure of the Broadcasting and Telecommunications subsector
was decided upon in a previously signed preliminary agreement (Number
2), but at the time, the sector in which it would be included had not
been determined. The three countries have agreed to place it in the
Information sector. The following is a summary of the previously signed
agreement.
The Broadcasting and Telecommunications subsector includes
establishments providing point-to-point communications and the services
related to that activity. The industry groups (Radio and Television
Broadcasting, Cable Networks and Program Distribution, and
Telecommunications) are based on differences in the methods of
communication and in the nature of services provided. The Radio and
Television Broadcasting industry group includes establishments that
operate broadcasting studios and facilities for over the air or
satellite delivery of radio and television programs of entertainment,
news, talk, and the like. These establishments are often engaged in the
production and purchase of programs and generating revenues from the
sale of air time to advertisers, and from donations, subsidies, and/or
the sale of programs. The Cable Network

[[Page 26605]]

and Program Distribution industry group includes two types of
establishments. Cable Networks establishments operate studios and
facilities for the broadcasting of programs that are typically narrow
cast in nature (limited format such as news, sports, education, and
youth-oriented programming). The services of these establishments are
typically sold on a subscription or fee basis. Delivery of the programs
to customers is handled by other establishments, in the Cable and
Program Distribution industry, that operate cable systems, direct-to-
home satellite systems, or other similar systems. The
Telecommunications industry group is primarily engaged in operating,
maintaining, and/or providing access to facilities for the transmission
of voice, data, text, sound, and full motion picture video between
network termination points. A transmission facility may be based on a
single technology or a combination of technologies.
The Information Services and Data and Transaction Processing
subsector is subdivided into two industry groups. The Information
Services industry group includes establishments that provide, store, or
provide access to information. The Data and Transaction Processing
industry group includes establishments that process data and
transactions.

Limitations and Constraints of the Classification

The concept of an Information sector is new and for that reason its
definition could be very broad or very narrow. For instance, it can be
argued that establishments engaged in activities such as advertising,
marketing research, public opinion polling and credit reporting should
be included here since they are, in one way or another, engaged in
producing, manipulating and distributing information and/or cultural
products. These establishments, however, also share characteristics
with establishments found in the Professional, Scientific and Technical
Services subsector and it is proposed to classify them in that sector.
Similarly, independent artists, writers, and performers could be
classified here since they provide the creative input essential to the
production of many of the industries found in this sector. However, it
has been decided to classify all such establishments in a single
industry in the Performing Arts, Spectator Sports, and Related
Industries subsector.
The Information sector is largely a restructuring of existing
classifications. For example, many of the activities that are
classified in Publishing and in Sound Recording Industries are
currently classified in the Manufacturing sectors in the existing
national classifications. As a result, the definition of existing broad
aggregates such as manufacturing or business services have changed.
The identification of new and emerging industries is one of the
principle goals of the NAICS project, and in this case many such
industries are introduced in the classification (the extent varies by
country.) However, many users have expressed the wish that this goal be
achieved while minimizing breaks in time series. These two objectives
are often conflicting and the degree to which proposed NAICS industries
relate to existing national classification systems varies from country
to country. This issue is elaborated in the Changes to the National
Classification section.

Relationship to ISIC

Twenty-six of the 29 proposed NAICS industries are contained within
Divisions 22, Publishing, Printing and Reproduction of Recorded Media;
64, Post and Telecommunications; 72, Computer and Related Activities;
and 92, Recreational, Cultural and Sporting Activities of the Current
International Standard Industrial Classification of all Economic
Activities (ISIC, Revision 3) of the United Nations. The following
NAICS industries cannot be assigned to an ISIC division without being
subdivided: Other Publishing; Radio Broadcasting; and Television
Broadcasting. However, the discrepancies between these proposed NAICS
industries and ISIC are minor and do not have a significant impact on
the comparability of data. Accordingly, most of the NAICS Information
sector can be retabulated to reach consistency at the two-digit level
of ISIC.

Changes to the National Classification

For Canada, the most fundamental change to the 1980 Canadian
Standard Industrial Classification (CSIC) is the grouping in one sector
of industries currently classified in several sectors. Publishing has
been moved from Manufacturing (CSIC 28), broadcasting and
telecommunication industries from Communication Industries (CSIC 48),
film industries from Amusement and Recreational Service Industries
(CSIC 96), record companies from Manufacturing (CSIC 39), libraries
from Educational Services Industries (CSIC 85), and software publishing
and data processing from Business Service Industries (CSIC 77).
The current classification for traditional publishing separates
establishments engaged in publishing only from those engaged in
publishing and printing. In the proposed NAICS classification, these
establishments are classified to five different 4-digit industries
according to the type of publishing (newspaper, book, database, etc.)
whether or not they are also engaged in printing activities. Software
publishing, currently a component of the Computer Services industry
(CSIC 7721), is now classified in this subsector.
The classification of video wholesaling to the existing Motion
Picture and Video Distribution class (CSIC 9612) is changed; video
wholesaling is now assigned to the Wholesale Trade area. Establishments
primarily engaged in videotaping are moving from the Motion Picture and
Video Production industry (CSIC 9611) to the NAICS class for
Photography in the Management, Employment, Administrative and Support
Services subsector. The three existing classes for motion picture and
video exhibition (CSIC 9621, 9622, 9629) are collapsed into one NAICS
class. Independent motion picture directors, currently classified to
the Motion Picture and Video Production industry, are moving to the
Performing Arts, Spectator Sports and Related Industries subsector of
NAICS.
Sound recording activities are now classified to a separate
industry group in five newly created 4-digit industries. This is
significantly different from the current practice of assigning these
activities in different areas of the CSIC, the most important being
wholesale trade and manufacturing.
Other significant changes include the movement of libraries (part
of CSIC 8541) and archives (part of CSIC 8551) from Educational Service
Industries to this sector and of news syndicates (part of CSIC 7799),
on-line information services (part of CSIC 7799) and data processing
services (part of CSIC 7721) from the Business Services division to
this sector.
For Mexico, economic activities emanating from various CMAP sectors
have been reclassified into the new Information sector. Editing and a
combination of editing and printing were taken from the Manufacturing
Sector, group CMAP 3420, corresponding to printing and editing. From
group CMAP 3832, Manufacture and/or Assembly of Electronic Radio,
Television, Communications and Medical Equipment, recording, editing
and record reproducing studios were

[[Page 26606]]

transferred when these studios are integrated in this manner.
The following classes were reclassified from the current
Transportation and Communications Sector; CMAP classes 720003,
Telephone Services; 720004, Public Telephone Services; 720005,
Telegraph Services; and 720006, Other Telecommunications Services,
except for facsimile services in the latter category, found under the
Organization Services subsector, together with Business Centers.
Services related to cinematography, radio and television were taken
from the current Recreation, Cultural and Sports Services (CMAP classes
941101, 941102, 941103, 941104, 941105, 941201, 941202 and 941203),
both from the public and private sectors. Library services, currently
classified by the CMAP together with museums, botanical gardens and the
like, under CMAP branches 9421 and 9422, were also reclassified under
this new sector.
Finally, from the current CMAP 9510 branch, Provision of
Professional, Technical and Specialized Services, the following CMAP
classes were taken: from CMAP 951004, Systems Analysis and Information
Processing Services, the corresponding parts to software editing
services, on-line consulting services and rented computer time; CMAP
951014, News Agencies' Services; and CMAP 951023, Other Professional,
Technical and Specialized Services previously mentioned, pre-recorded
telephone information services.
For the United States, the Information sector is a new grouping and
includes industries that were included in different divisions of the
1987 SIC. The concepts underlying the creation of this sector and the
industry descriptions address the increasing use of electronic means of
dissemination that is not considered in the 1987 SIC.
The Newspaper, Periodical, Book and Database Publishing industry
group is currently included in the Manufacturing division of the 1987
SIC (Industry Groups 271, 272, 273, 274 and part of 1987 SIC 2771). The
industries included in the NAICS Information sector are those involved
in publishing, or publishing and printing combined. Establishments
engaged in printing only remain in the Manufacturing sector of NAICS.
The Software Publishing industry is part of the 1987 SIC 7372,
Prepackaged Software, in the 1987 SIC in the Business Services major
group. The reproduction of prepackaged software only is included in the
Computer and Electronic Components subsector in the NAICS Manufacturing
sector.
The Motion Picture and Video Industries industry group includes
industries classified in the Motion Pictures major group of the 1987
SIC. Parts of 1987 SIC 7819, Services Allied Motion Pictures, were
reclassified in other sectors to create more homogeneous, production
based categories. A new industry is created for Teleproduction and
Other Post-production Services from 1987 SIC 7819, Services Allied to
Motion Picture Production, and the remainder of 1987 SIC 7819 was
combined with 1987 SIC 7829, Services Allied to Motion Picture
Distribution.
Five new industries are created within the Sound Recording
Industries industry group. None of these industries exist in the 1987
SIC and, in most instances, there is no indication in the 1987 SIC
Manual of the appropriate industry in which they should be included.
Because of this, it is difficult to predict the impact of this change,
though in most instances it is expected to have a minor effect on
existing time series.
Changes to the U.S. SIC system for the Broadcasting and
Telecommunications industries subsector were addressed in a previous
NAICS agreement (Agreement number 2).
The Information Services and Data and Transaction Processing
subsector includes a number of information service-related industries.
The News Syndicates and Libraries and Archives industries correspond to
1987 SIC 7383, News Syndicates, and 8231, Libraries. News Syndicates
were previously located in the Business Services major group and
Libraries were located in the Educational Services major group. The
Other Information Services industry primarily includes establishments
classified in 1987 SIC 7375, Information Retrieval Services. U.S.
national detail preserves this industry and provides a residual class
for all other information services. The Data and Transaction Processing
industry corresponds to 1987 SIC 7374, Computer Processing and Data
Preparation and Processing Services. Both Information Retrieval
Services and Computer Processing and Data Preparation and Processing
Services were located in the Business Services major group.

Achievement of Objectives

The classification meets the objectives for the North American
Industry Classification System. It is comprised of industries that
group establishments with similar production processes, that is, it
applies the production-oriented economic concept. The hierarchical
structure also follows the production concept.
The classification achieves comparability for the three
participating countries. All countries agree on the definitions of the
industries. The classification improves comparability with other
countries. Based on existing data, each country expects to be able to
publish data regularly, or in the near future, at the 4-digit NAICS
level of this structure.
Other objectives of the NAICS project have also been met. The
classification meets the objectives of an industry classification. In
an effort to identify high technology and new emerging industries, new
industries in the Sound Recording industry group and the Broadcasting
and Telecommunications subsector have been identified. The
classifications are homogeneous and account for most of the activities
that define them. In addition, they are economically significant.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the NAICS industry sector
presented in Part VIII, Section A--Attachment 1, contain less detail
than is currently in the U.S. SIC system, and less detail than is
required to meet important analytical requirements in the U.S. The
three country agreement on NAICS envisions that each country may
develop national detailed industries below the NAICS industry level, so
long as the national detail can be aggregated to the NAICS
classification, thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS
industry sector covered in Part VIII of this notice. For cases where no
5-digit detail is shown, the ECPC is proposing that the NAICS 4-digit
industries will also represent the most detailed U.S. industries.

[[Page 26607]]

Table 1
----------------------------------------------------------------------------------------------------------------
1987
1997 NAICS and U.S. Status code SIC 1987 SIC description
description code
----------------------------------------------------------------------------------------------------------------
XX................. Publishing
XXX................ Newspaper, Periodical, Book
and Database Publishing:
XXXX............... Newspaper Publishing...... E 2711 Newspapers: Publishing, or
Publishing and Printing.
XXXX............... Periodical Publishing..... E 2721 Periodicals: Publishing, or
Publishing and Printing.
XXXX............... Book Publishing........... E 2731 Books: Publishing, or Publishing
and Printing.
XXXX............... Database Publishing....... N *2741 Miscellaneous Publishing
(database publishers).
XXXX............... Other Publishing:
XXXXX.............. Greeting Card Publishing. R *2771 Greeting Cards.
XXXXX.............. All Other Publishing..... R *2741 Miscellaneous Publishing (except
database publishing).
XXX................ Software Publishing:
XXXX............... Software Publishing....... R *7372 Prepackaged Software.
XX................. Motion Picture and Sound
Recording:
XXX................ Motion Picture and Video
Industries:
XXXX............... Motion Picture and Video E 7812 Motion Picture and Video Tape
Production. Production.
XXXX............... Motion Picture and Video E *7822 Motion Picture and Video Tape
Distribution. Distribution (except video tape
and cassette wholesalers).
XXXX............... Teleproduction and Other N *7819 Services Allied to Motion Picture
Post-Production Services. Production (teleproduction and
post-production services).
XXXX............... Motion Picture and Video
Exhibition:
XXXXX.............. Motion Picture Theaters, E 7832 Motion Picture Theaters, Except
except Drive-Ins. Drive-In.
XXXXX.............. Drive-In Motion Picture E 7833 Drive-In Motion Picture Theaters.
Theaters.
XXXX............... Other Motion Picture and N *7819 Services Allied to Motion Picture
Video Industries. Production (except casting
bureaus, wardrobe and equipment
rental, talent payment services,
teleproduction and other post-
production services).
7829 Services Allied to Motion Picture
Distribution.
XXX................ Sound Recording Industries:
XXXX............... Record Production N *6794 Patent Owners and Lessors (music
Companies. royalties, sheet and record).
XXXX............... Integrated Record N *3652 Phonograph Records and
Companies. Prerecorded Audio Tapes and
Disks (integrated record
companies, except duplication
only).
XXXX............... Music Publishing.......... N *6794 Patent Owners and Lessors (music
publishing).
XXXX............... Sound Recording Studios... N *7389 Business Services, NEC (recording
studios).
XXXX............... Other Sound Recording N *7389 Business Services, NEC (audio
Industries. taping services).
*7922 Theatrical Producers (Except
Motion Picture) and
Miscellaneous Theatrical
Services (producers of radio
programs).
XX................. Broadcasting and
Telecommunications:
XXX................ Radio and Television
Broadcasting:
XXXX............... Radio Broadcasting:
XXXXX.............. Radio Networks........... N *4832 Radio Broadcasting Stations
(networks).
XXXXX.............. Radio Stations........... N *4832 Radio Broadcasting Stations
(except networks).
XXXX............... Television Broadcasting... E 4833 Television Broadcasting Stations.
XXX................ Cable Networks and Program
Distribution:
XXXX............... Cable Networks............ N *4841 Cable and Other Pay Television
Services (cable networks).
XXXX............... Cable and Program N *4841 Cable and Other Pay Television
Distribution. Services (except cable
networks).
XXX................ Telecommunications:
XXXX............... Wired Telecommunications N *4813 Telephone Communications, Except
Carriers. Radiotelephone (except
resellers).
4822 Telegraph and Other Message
Communications.
XXXX............... Wireless
Telecommunications
Carriers, Except
Satellite:
XXXXX.............. Paging................... N *4812 Radiotelephone Communications
(paging carriers).
XXXXX.............. Cellular and Other N *4812 Radiotelephone Communications
Wireless (cellular carriers).
Telecommunications.
*4899 Communications Services, NEC
(radio dispatch).
XXXX............... Telecommunications N *4812 Radiotelephone Communications
Resellers. (paging and cellular resellers).
*4813 Telephone Communications, Except
Radiotelephone (resellers).
XXXX............... Satellite N *4899 Communications Services, NEC
Telecommunications. (Satellite communications).
XXXX............... Other Telecommunications.. N *4899 Communications Services, NEC
(except radio dispatch,
satellite communications).
XX................. Information Services and Data
and Transaction Processing:
XXX................ Information Services:
XXXX............... News Syndicates........... E 7383 News Syndicates.
XXXX............... Libraries and Archives.... E 8231 Libraries.
XXXX............... Other Information
Services:
XXXXX.............. On-Line Information E 7375 Information Retrieval Services.
Services.

[[Page 26608]]

XXXXX.............. All Other Information N *8999 Services, NEC (miscellaneous
Services. information providers).
XXX................ Data and Transaction
Processing:
XXXX............... Data and Transaction E 7374 Computer Processing and Data
Processing. Preparation and Processing
Services.
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and
* means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

Table 2
----------------------------------------------------------------------------------------------------------------
1987 SIC code 1987 SIC description 1997 U.S. description
----------------------------------------------------------------------------------------------------------------
2711.................................... Newspapers: Publishing, or Newspaper Publishing.
Publishing and Printing.
2721.................................... Periodicals: Publishing, or Periodical Publishing.
Publishing and Printing.
2731.................................... Books: Publishing, or Publishing Book Publishing.
and Printing.
[email protected] Miscellaneous Publishing: ....................................
Database Publishing........... Database Publishing.
Miscellaneous Publishing, All Other Publishing.
Except Database.
2771.................................... Greeting Cards.................. Greeting Card Publishing.
[email protected] Radiotelephone Communications:
Paging Carriers............... Paging.
Cellular Carriers............. Cellular and Other Wireless
Telecommunications
Paging and Cellular Resellers... Telecommunications Resellers (pt.).
[email protected] Telephone Communications, Except
Radiotelephone:
Except Resellers.............. Wired Telecommunications Carriers
(pt.).
Resellers..................... Telecommunications Resellers (pt.).
[email protected] Telegraph and Other Message Wired Telecommunications Carriers
Communications. (pt.).
4832.................................... Radio Broadcasting Stations:
Networks...................... Radio Networks.
Stations...................... Radio Stations.
4833.................................... Television Broadcasting Stations Television Broadcasting.
4841.................................... Cable and Other Pay Television
Services:
Cable Networks................ Cable Networks.
Except Cable Networks......... Cable and Program Distribution.
4899.................................... Communications Services, Not
Elsewhere Classified:
Radio Dispatch................ Cellular and Other Wireless
Telecommunications (pt.).
Satellite Communications...... Satellite Telecommunications.
Except Radio Dispatch and Other Telecommunications.
Satellite.
Communications
7372.................................... Prepackaged Software:
Software Publishing........... Software Publishing.
Reproduction of Software...... Reproduction of Software.
7374.................................... Computer Processing and Data Data and Transaction Processing.
Preparation and Processing
Services.
7375.................................... Information Retrieval Services.. On-Line Information Services.
7383.................................... News Syndicates................. New Syndicates.
7389.................................... Business Services, Not Elsewhere
Classified:
Sound Recording Studios....... Sound Recording Studios.
Audio Taping Services......... Other Sound Recording Industries
(pt.).
7812.................................... Motion Picture and Video Tape Motion Picture and Video Production.
Production.
7819.................................... Services Allied to Motion
Picture Production:
Teleproduction and Post- Teleproduction and Other Post-
Production Services. Production Services.
Casting Bureaus............... Employment Agencies (pt.) (Included
in Management, Employment,
Administrative and Support Services
subsector).
Wardrobe Rental (Motion Rental and Leasing of Formal Wear
Pictures). and Costumes (pt.) (Included in
Rental and Leasing subsector).
Rental of Motion Picture Rental and Leasing of Machinery and
Equipment. Equipment (pt.) (Included in Rental
and Leasing subsector).
Talent Payment Services....... Payroll Services (Included in
Professional Scientific and
Technical Services subsector).
Except Casting Bureaus, Other Motion Picture and Video
Wardrobe and Equipment Services (pt.).
Rental, Teleproduction and
Other Post-Production
Services.
7822.................................... Motion Picture and Video Tape
Distribution:
Distribution, Except Video Motion Picture and Video
Tape and Cassette Wholesalers. Distribution.
Video Tape and Cassette (Included in Wholesale Trade
Wholesalers. Sector).
7829.................................... Services Allied to Motion Other Motion Picture and Video
Picture Distribution. Services (pt.).

[[Page 26609]]

7832.................................... Motion Picture Theaters, Except Motion Picture Theaters, Except
Drive-Ins. Drive-In.
7833.................................... Drive-In Motion Picture Theaters Drive-In Motion Picture Theaters.
[email protected] Theatrical Producers (Except
Motion Picture) and
Miscellaneous Theatrical
Services:
Producers of Radio Programs:.. Other Sound Recording Industries
(pt.).
8231.................................... Libraries....................... Libraries and Archives.
[email protected] Patent Owners and Lessors:
Record Production Companies... Record Production Companies.
Music Publishing.............. Music Publishing.
[email protected] Phonograph Records and
Prerecorded Audio Tapes and
Disk.
Integrated Record Companies, Integrated Record Companies.
Except Duplication Only.
[email protected] Services, Not Elsewhere
Classified.
Miscellaneous Information All Other Information Services.
Providers.
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means time series break has been created that is greater than 3%
of the 1992 revenues for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere Classified.
Note: Detail for SIC's 7389, 7922, 6794, 3652 and 8999 only represent those parts applicable to the Information
Sector.

Description of Changes to the U.S. System

1. One new industry was created in the Publishing subsector.
Database Publishing was created from part of 1987 SIC 2741,
Miscellaneous Publishing. It was established because of the growth of
this type of publishing and is supported by the production process.
All Other Publishing was revised from part of 1987 SIC 2741,
Miscellaneous Publishing, by the removal of database publishing.
Software Publishing was created from part of 1987 SIC 7372
Prepackaged Software. Reproduction of software only is included in the
Computer and Electronic Component Manufacturing subsector.
Four of the five 1987 publishing industries remained largely
unchanged and time series will not be significantly affected.
2. Seven new industries were created in the Motion Picture and
Sound Recording subsector. The Teleproduction and Other Post-Production
Services industry was created from part of 1987 SIC 7819, Services
Allied to Motion Picture Production, based upon a request by the
industry and is supported by production based principles.
Other Motion Picture and Video Industries was created from part of
1987 SIC 7819, Services Allied to Motion Picture Production, and 1987
SIC 7829, Services Allied to Motion Picture Distribution, to form a
residual industry containing establishments that provide specialized
services in support of the motion picture production and distribution
industries.
The Record Production Companies industry was created from part of
1987 SIC 6794, Patent Owners and Lessors. This industry was created to
include establishments that perform a specialized role in searching out
and contracting musical artists. This industry is supported by the
production process.
The Integrated Record Companies industry was created from part of
1987 SIC 3652, Phonograph Records and Prerecorded Audio Tapes and
Disks. This industry was established to include establishments that
reproduce and distribute musical recordings. This industry is supported
by the production process.
The Music Publishing industry was created from part of 1987 SIC
6794, Patent Owners and Lessors, to recognize the specialized role it
has in promoting the use of musical works in recordings, film,
television, and other media. Music publishers are primarily engaged in
owning the copyright of musical compositions, and administering the
exploitation of the bundle of rights that flow from the ownership of
this copyright. The industry is supported by production based
principles.
The Sound Recording Studios industry was created from part of 1987
SIC 7389, Business Services, Not Elsewhere Classified. This industry
was established to include establishments that perform a specialized
role in providing facilities and expertise in recording performances,
and is supported by production based principles.
Other Sound Recording Services was created from part of 1987 SIC
7922, Theatrical Producers (Except Motion Picture) and Miscellaneous
Theatrical Services, and part of 1987 SIC 7389, Business Services, NEC.
This industry was created as a residual to include establishments that
provide specialized audio and sound related services. It is supported
by production based principles.
3. There are 11 new industries in the Broadcasting and
Telecommunications subsector. These were published in the Federal
Register on July 26, 1995. Please refer to page 38448 for details.
4. There is one new industry in the Information Services and Data
and Transaction Processing subsector. The All Other Information
Services industry was created to include a variety of information
service related establishments not included in other industries in this
sector. While this class is expected to be very small at the present
time, it represents a residual industry that may contain new types of
establishments in the future as more advanced information technologies
emerge and grow. The U.S. national On-Line Information Services
industry (1987 SIC 7375, Information Retrieval Services) includes
establishments that provide access to, and distribution of, information
that has been stored electronically for retrieval.

Part IX--Proposed New Industry Structure for Wood Product
Manufacturing, Except Furniture

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 19

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following subsector:

Wood Product Manufacturing, Except Furniture

[[Page 26610]]

Attachment 1--NAICS Structure

XX Wood Product Manufacturing, Except Furniture
XXX Sawmill Product and Wood Preservation Manufacturing
XXXX Sawmill Product and Wood Preservation Manufacturing
XXX Laminated Wood Product Manufacturing
XXXX Laminated Wood Product Manufacturing
XXX Other Wood Product Manufacturing
XXXX Wood Construction Product Manufacturing
XXXX Wood Container and Package Product Manufacturing
XXXX All Other Wood Product Manufacturing

Attachment 2--North American Industry Classification System

Draft Classification for:

Wood Product Manufacturing, Except Furniture

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industry classification for these
industries.
The draft classification provides for the subsector Wood Product
Manufacturing, Except Furniture. This subsector is further subdivided
into three industry groups and five industries.

A General Outline

The Wood Product Manufacturing, Except Furniture industries produce
wood products such as lumber, hardwood and softwood plywood and
veneers, wood containers, wood flooring and trusses, mobile homes, and
prefabricated wood buildings.
The production processes of the Wood Product Manufacturing, Except
Furniture industries include sawing, planing, shaping, laminating and
sometimes assembly of wood, starting from logs that are cut into bolts,
planks, or boards that then may be further cut, or shaped by lathes or
other shaping tools. The boards or other shapes also may be
subsequently planed or smoothed, and assembled into finished products
such as wooden containers.
The Sawmill Product and Wood Preservation Manufacturing industries
include establishments whose production process begins with wooden logs
that are then transformed into boards, poles, ties, and beams.
Establishments that process wood to prevent rotting by impregnation
with creosote or other chemical compounds also are included in this
industry group.
The Laminated Wood Product Manufacturing industries include
establishments that produce hardwood and softwood plywood, particle
board, oriented strand board, and glue laminated wood products,
including plywood covered with other materials such as plastic and
metals. Plywood and particle board products that are included in this
industry group are generally produced by a process involving high-
pressure compression and through the use of glues either in combination
or separately.
There are three NAICS industries in the Other Wood Product
Manufacturing industry group. The Wood Construction Product
Manufacturing industry includes establishments that manufacture doors,
windows, closets, wall coverings, parquet flooring, staves, partitions,
and general products for woodwork. Excluded from this industry is the
manufacture of wooden houses and furniture.
Establishments in the Wood Container and Package Product
Manufacturing industries manufacture products for packing and
packaging, such as pallets, barrels, casks, crates, vats, containers,
jewelry boxes, and decorative and ornamental boxes.
Finally, establishments in the All Other Wood Product Manufacturing
industries produce cork and cork products, manufactured wooden houses,
plaiting materials, such as wicker, reeds, etc., turned items, etc.

Limitations and Constraints of the Classification

Developing an industry classification for Wood Product
Manufacturing, Except Furniture industries was difficult for the three
countries. First, the wood industry in Mexico is small and relatively
unspecialized. Therefore the NAICS industries are quite aggregated to
ensure that information can be published in all three countries. For
example, in Mexico the treatment and preservation of wood generally
takes place at sawmills as part of the production of poles and ties.
There are few establishments where it is the primary activity.
Therefore, NAICS combines these activities into one industry.
Another factor that limited the formulation of classes in this
subsector are differences in climate among the three countries. The
climate has led to higher levels of development and specialization in
the wood industry in the United States and Canada, particularly with
regard to construction and construction materials. Mexico does not grow
hardwood trees. Each country may, however, publish additional national
industries that comprise subdivisions of NAICS industries to present
data for activities that are nationally significant.

Relationship to ISIC

Most four-digit NAICS industries in this subsector are contained
within Division 20, Manufacture of Wood Products, of the current
International Standard Industrial Classification of all Economic
Activities (ISIC, Revision 3) of the United Nations. The following
NAICS industry cannot be assigned to an ISIC Division: All Other Wood
Product Manufacturing. This industry includes the manufacture of wooden
heels that are classified in ISIC Division 19, Manufacture of Leather,
Leather Products, and Footwear. However, this is a very small activity
and should not significantly affect the comparability between this
NAICS subsector and ISIC Division 20.

Changes to the National Classifications

The changes to the current national classifications were varied in
nature. In some cases, changes applied to all three countries while in
others the changes affected only one or two of the countries.
For Canada, the major structural change entailed moving the
production of building board (CSIC 2714) to the Wood Product
Manufacturing, Except Furniture subsector both to achieve international
comparability and to better meet the production process principle. CSIC
2542, Kitchen Cabinet and Bathroom Vanities, was moved from the
Canadian Wood major group to better adhere to the production process,
and ultimately to achieve three country

[[Page 26611]]

comparability. In addition, sawmills were redefined to exclude wood and
wood products made from purchased lumber. Wooden coffins were moved
from this subsector to Miscellaneous Manufacturing because
establishments tend to make this product from plastic and metal as well
as wood. Other structural changes for Canada, such as the movement of
the manufacture of wooden cigar cases and jewelry boxes, wooden boot
and shoe heels, billboards, and other wooden signs and cork gaskets,
etc. are minor.
For Mexico, the major change is the movement of wood furniture from
CMAP Subsector, Wood and Wood Products, Including Furniture, to the new
NAICS Furniture Manufacturing subsector. In the current Mexican
structure, the manufacture of furniture is classified in groups
allocated to the type of input material, that is, wood, metal, plastic,
etc. Furniture is more and more being made of multiple materials and
design is an important component of its production process. Thus, a
separate NAICS subsector was created for the manufacture of furniture
from all types of material.
For the United States, the major change is the movement of 1987 SIC
2411, Logging, from the Lumber and Wood Products, Except Furniture
major group to the Forestry and Logging subsector. The move was made to
better meet production principles, and to match Canada's and Mexico's
classification of this activity. Another important structural change
was to move the manufacture of 1987 SIC 2434, Wood Kitchen Cabinets,
from this group to the NAICS Furniture Manufacturing subsector for
production principles. The manufacture of wooden chair frames was also
moved from here to the Furniture Manufacturing subsector to reach
international comparability. Other structural changes include the
movement of cork gaskets, wood heels, wood signs, and burnt wood
articles to this group from various other manufacturing subsectors.

Achievement of Objectives

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the NAICS industry subsector
presented in Part IX, Section A--Attachment 1, contain less detail than
is currently in the U.S. SIC system, and less detail than is required
to meet important analytical requirements in the U.S. The three country
agreement on NAICS envisions that each country may develop national
detailed industries below the NAICS industry level, so long as the
national detail can be aggregated to the NAICS classification, thus
assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS
industry subsector covered in Part IX of this notice. For cases where
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

[[Page 26612]]

XXXX............... Wood Container and Package
Product Manufacturing.
XXXXX.............. Wood Container and N 2441 Nailed and Lock Corner Wood Boxes
Package Product and Shook.
Manufacturing.
................ 2448 Wood Pallets and Skids.
2449 Wood Containers, NEC.
*2499 Wood Products, NEC (wood tubs and
vats, jewelry and cigar boxes).
XXXX............... All Other Wood Product
Manufacturing:
XXXXX.............. Manufactured Homes E 2451 Mobile Homes.
(Mobile) Manufacturing.
XXXXX.............. Prefabricated Wood E 2452 Prefabricated Wood Buildings and
Building and Component Components.
Manufacturing.
XXXXX.............. Other Wood Product R *2426 Hardwood Dimension and Flooring
Manufacturing. Mills (wood stock and turnings).
.................................
*2499 Wood Products, NEC (other wood
products).
*3053 Gaskets, Packing, and Sealing
Devices (cork gaskets,
packaging, and sealing devices).
*3131 Boot and Shoe Cut Stock and
Findings (wood heels).
*3993 Signs and Advertising Specialties
(wood signs).
----------------------------------------------------------------------------------------------------------------
The definitions of status are as follows: E--existing industry; N--new industry; R--revised industry; and *
means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

Table 2
----------------------------------------------------------------------------------------------------------------
1987 SIC code 1987 SIC description 1997 U.S. description
----------------------------------------------------------------------------------------------------------------
2411.................................... Logging......................... Logging Operations (Included in
Support Activities for Forestry
subsector).
[email protected] Sawmills and Planing Mills, Sawmills and Planing Mills (pt).
General.
[email protected] Hardwood Dimension and Flooring
Mills:
Hardwood Flooring............. Millwork Manufacturing, Including
Flooring (pt)
Wood Stock and Turnings....... Other Wood Product Manufacturing
(pt).
Office Chair Frames........... Wood Office Furniture Manufacturing
(pt) (Included in Furniture
Manufacturing subsector).
Chair Frames for Wood Household Furniture
Nonupholstered Furniture Manufacturing, Except Upholstered
(Household). (pt) (Included in Furniture
Manufacturing subsector).
Chair Frames for Upholstered Upholstered Wood Household Furniture
Furniture (Household). Manufacturing (pt) (Included in
Furniture Manufacturing subsector).
Other Hardwood Dimension Hardwood Dimension Mills.
Except Flooring.
[email protected] Special Product Sawmills NEC.... Sawmills and Planing Mills (pt).
[email protected] Millwork:
Wood Window and Door Other Millwork Manufacturing,
Manufacturing. Including Flooring (pt).
2434.................................... Wood Kitchen Cabinets........... Wood Kitchen Cabinet Manufacturing
(Included in Furniture
Manufacturing subsector).
2435.................................... Hardwood Veneer and Plywood..... Hardwood Veneer and Plywood
Manufacturing
2436.................................... Softwood Veneer and Plywood..... Softwood Veneer and Plywood
Manufacturing
[email protected] Structural Wood Members, NEC:
Except Trusses................ Structural Wood Member
Manufacturing, Except Trusses.
Trusses....................... Truss Manufacturing.
2441.................................... Nailed and Lock Corner Wood Wood Containers and Package Product
Boxes and Shook. Manufacturing (pt).
2448.................................... Wood Pallets and Skids.......... Wood Containers and Package Product
Manufacturing (pt).
2449.................................... Wood Containers, NEC............ Wood Containers and Package Product
Manufacturing (pt).
2451.................................... Mobile Homes.................... Manufactured Homes, (Mobile
Manufacturing
2452.................................... Prefabricated Wood Buildings and Prefabricated Wood Building and
Components. Component Manufacturing.
2491.................................... Wood Preserving................. Wood Preserving.
2493.................................... Reconstituted Wood Products..... Reconstituted Wood Product
Manufacturing.
2499.................................... Wood Products, NEC:
Wood Tubs and Vats, Jewelry Other Wood Container Manufacturing
and Cigar Boxes. (pt).
Wood Laundry Hampers.......... Household Wood Furniture
Manufacturing, Except Upholstered
(pt) (Included in Furniture
Manufacturing subsector).
Laundry Hampers Made from Other Furniture Manufacturing (pt)
Rattan, Reed or Willow Mirror (Included in Furniture
and Picture Frames. Manufacturing subsector) All Other
Miscellaneous Manufacturing (pt)
(To Be Included in Miscellaneous
Manufacturing subsector).
Other Wood Products........... Other Wood Product Manufacturing
(pt).
[email protected] Gaskets, Packing, and Sealing
Devices:
Cork Gaskets, Packing, and Other Wood Product Manufacturing
Sealing Devices. (pt).

[[Page 26613]]

Metal Gaskets, Packing, and Other Miscellaneous Fabricated Metal
Sealing Devices. Product Manufacturing (pt)
(Included in Fabricated Metal
Product Manufacturing subsector).
Plastics Gaskets, Packing, and All Other Plastic Product
Sealing Devices. Manufacturing (pt) (Included in
Rubber and Plastic Product
Manufacturing subsector).
Rubber Gaskets, Packing, and All Other Rubber Product
Sealing Devices. Manufacturing (pt) (Included in
Rubber and Plastic Product
Manufacturing subsector).
[email protected] Boot and Shoe Cut Stock and
Findings:
Wood Heels.................... Other Wood Product Manufacturing
(pt).
Metal Buckles................. Fastener, Button, Needle, and Pin
Manufacturing (pt) (To be Included
in Miscellaneous Manufacturing
subsector).
Other Footwear Cut Stock...... Miscellaneous Leather and Allied
Product Manufacturing (pt)
(Included in Leather and Allied
Product Manufacturing subsector).
[email protected] Signs and Advertising
Specialties:
Wood Signs.................... Other Wood Product Manufacturing
(pt).
Electric Signs................ Electric Sign Manufacturing
(Included in Electrical Equipment,
Appliance, and Component
Manufacturing subsector).
Metal Signs................... All Other Fabricated Metal Product
Manufacturing (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).
Flexographic Printing of Commercial Flexographic Printing
Advertising Specialties. (pt) (Included in Printing and
Related Support Activities
subsector).
Gravure Printing of Commercial Gravure Printing (pt)
Advertising Specialties. (Included in Printing and Related
Support Activities subsector).
Lithographic Printing of Commercial Lithographic Printing
Advertising Specialties. (pt) (Included in Printing and
Related Support Activities
subsector).
Screen Printing of Advertising Commercial Screen Printing (pt)
Specialties. (Included in Printing and Related
Support Activities subsector).
Other Printing of Advertising Other Commercial Printing (pt)
Specialties. (Included in Printing and Related
Support Activities subsector).
3999.................................... Manufacturing Industries, NEC:
Burnt Wood Articles........... Other Wood Product Manufacturing
(pt).
Beauty and Barber Chairs...... Metal Office and Public Building
Furniture Manufacturing (pt)
(Included in Furniture
Manufacturing subsector).
Fur Bleaching, Currying, Leather and Hide Tanning and
Scraping, Tanning and Dyeing. Finishing Manufacturing (pt)
(Included in Leather and Allied
Product Manufacturing subsector).
Lamp Shades of Paper and Other Lighting Equipment
Textile. Manufacturing (pt) (Included in
Electrical Equipment, Appliance,
and Component Manufacturing
subsector).
Matches....................... Other Miscellaneous Chemical Product
Manufacturing (pt) (Included in
Chemical Product Manufacturing
subsector).
Metal Products, Such As Combs, All Other Fabricated Metal Product
Hair Curlers, Etc.. Manufacturing (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).
Plastics Products, Such As All Other Plastic Product
Combs, Hair Curlers, Etc.. Manufacturing (pt) (Included in
Rubber and Plastic Product
Manufacturing subsector).
Flexographic Printing Eyeglass Commercial Flexographic Printing
Frames for the Trade. (pt) (Included in Printing and
Related Support Activities
subsector).
Gravure Printing Eyeglass Commercial Gravure Printing (pt)
Frames for the Trade. (Included in Printing and Related
Support Activities subsector).
Lithographic Printing Eyeglass Commercial Lithographic Printing
Frames for the Trade. (pt) (Included in Printing and
Related Support Activities
subsector).
Screen Printing Eyeglass Commercial Screen Printing (pt)
Frames for the Trade. (Included in Printing and Related
Support Activities subsector).
Other Printing Eyeglass Frames Other Commercial Printing (pt)
for the Trade. (Included in Printing and Related
Support Activities subsector).
Tape Measures................. Hand and Edge Tool Manufacturing
(pt) (Included in Fabricated Metal
Product Manufacturing subsector).
Other......................... All Other Miscellaneous
Manufacturing (pt) (To Be Included
in Miscellaneous Manufacturing
subsector).
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of'', @ means time series break has been created that is greater than 3%
of the 1992 value of shipments for the 1987 SIC industry. The abbrevision NEC is used for Not Elsewhere
Classified.

Description of Changes to the U.S. System

A number of changes listed in this section were made for reasons of
international comparability. Where one or more of the three North
American countries had different definitions of an industry
classification, adjustments to the definitions in one or more countries
were required. In constructing NAICS, the three countries agreed to
move, where change was required to attain

[[Page 26614]]

international comparability, in the direction of the country or
countries whose existing classification definitions most closely
corresponded to the production-oriented concept adopted for NAICS.
Cases where the U.S. changed are listed below; other cases where Canada
or Mexico moved toward the U.S. classification are not, of course,
listed in this section.
Two new industries were added to the 1997 industry structure for
this industry subsector. Truss Manufacturing was created from part of
1987 SIC 2439, Structural Wood Members, NEC. This change was in
response to an industry proposal and also groups similar production
processes together.
Wood Window and Door Manufacturing was created from part of 1987
SIC 2431, Millwork. The change was in response to an industry proposal,
and conforms to production concepts.
Two complete industries were transferred out of 1987 Major Group
24, Lumber and Wood Products.
1987 SIC 2411, Logging, was transferred into the Support Activities
for Forestry subsector. This change was necessary to align the U.S.
classification with Canada and Mexico, and because logging is not a
production process that is similar to the manufacture of wood products
from logs.
1987 SIC 2484, Wood Kitchen Cabinets, was transferred into the
Furniture Manufacturing subsector. This change reflects production
processes that are essentially identical with those for furniture.
Three activities were transferred out of 1987 Major Group Lumber
and Wood Products.
Wood chair frames and wood chair seats were transferred from 1987
SIC 2426, Hardwood Dimension and Flooring Mills, to (1) Wood Office
Furniture Manufacturing, (2) Wood Household Furniture Manufacturing,
and (3) Upholstered Wood Household Furniture Manufacturing. This change
was necessary to align the U.S. classification with Canada and Mexico.
Laundry hampers were transferred from 1987 SIC 2499, Wood Products,
NEC, and placed by component material in their respective industries
within the Furniture Manufacturing subsector. This change was necessary
to align the U.S. classification with Canada and Mexico.
Mirror and picture frames were transferred 1987 SIC 2499, Wood
Products, NEC, into the All Other Miscellaneous Manufacturing
subsector. This change promotes international comparability with Canada
and reflects similar production functions regardless of material.
Four activities were transferred into the Wood Product
Manufacturing, Except Furniture subsector.
Cork gaskets were transferred 1987 SIC 3053, Gaskets, Packing and
Sealing Devices, into Other Wood Product Manufacturing. This change
promotes international comparability with Mexico, and reflects similar
production functions regardless of material.
Wood heels were transferred from 1987 SIC 3131, Boot and Shoe Cut
Stock and Findings, into Other Wood Product Manufacturing. This change
promotes international comparability with Mexico, while reflecting
similar production functions.
Wood signs were transferred from 1987 SIC 3993, Signs and
Advertising Specialities, into Other Wood Product Manufacturing. This
change promotes international comparability with Mexico, while
reflecting similar production functions.
Burnt wood articles were transferred from 1987 SIC 3999,
Manufacturing Industries, NEC, into Other Wood Product Manufacturing.
This change was necessary to align the U.S. classification with Canada
and Mexico.
Also several activities were transferred within the Lumber and Wood
Products Major Group. The number of industries decreased from 17 in
1987 to 14 in 1997. For time series linkage 11 of the 17 1987
industries are comparable within the three percent of the 1997
industries.

Part X--Proposed New Industry Structure for Rental and Leasing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 20

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following industries:

Rental and Leasing

The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on November 8 and November 9, 1995 in
Washington, D.C.

------------------------------------------------------------------------
Accepted Signature Date
------------------------------------------------------------------------
Canada.............................. /S/ Jacob Ryten........ 11/9/95
Mexico.............................. /S/ Enrique Ordaz...... 11/9/95
United States....................... /S/ Triplett Jack E.... 11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX Rental and Leasing Services
XXX Rental and Leasing of Automotive Equipment Without Drivers
XXXX Rental and Leasing of Passenger Cars Without Drivers
XXXX Rental and Leasing of Trucks Without Drivers, Utility
Trailers, and Recreation Vehicles
XXX Rental and Leasing of Consumer Goods
XXXX Rental of Consumer Electronics, Appliances and Home and Garden
Tools
XXXX Rental of Formal Wear and Costumes
XXXX Rental of Video Tapes
XXXX Other Rental and Leasing of Consumer Goods
XXX Rental and Leasing of Machinery and Equipment
XXXX Rental and Leasing of Heavy Construction, Transportation,
Mining and Forestry Machinery and Equipment
XXXX Rental and Leasing of Office Machinery and Equipment
XXXX Rental and Leasing of Other Machinery and Equipment

Attachment 2--North American Industrial Classification System

Draft Classification for:

Rental and Leasing

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industry classification for these
industries.
The draft classification provides for the subsector Rental and
Leasing. This subsector is further subdivided into three industry
groups and nine industries. The placement of this subsector within the
NAICS structure is not yet decided.

A General Outline

The Rental and Leasing subsector includes establishments that
acquire and own a wide variety of tangible goods, such as machinery,
equipment, computers and consumer goods, and rent or lease these goods
to customers, businesses or individuals in return for a periodic rental
or lease payment.
The subsector includes two main types of establishments: those that
provide rental of various consumer goods and equipment and those that
provide longer term leases for

[[Page 26615]]

machinery and equipment generally used in business operations. The
first type generally provide short-term rentals and operate from a
retail-like facility. The latter type typically have direct contact
with individual clients, work with the clients to determine their
individual needs, and tailor the lease arrangement to those specific
ends. They often restructure the lease to provide clients with more
appropriate equipment as the clients' needs change and they have
expertise in remarketing or disposing of previously leased equipment
and typically do not operate a retail-like facility.
Rental and leasing activities are currently dispersed throughout
the classification systems of the three countries. This grouping brings
together those activities with similar production processes.
Establishments that act as a third party in providing financing or
credit to enable the acquisition of the equipment through a lease
arrangement, such as banks or credit subsidiaries of manufacturing
companies, are excluded from this subsector. They are classified in the
Finance and Insurance sector. Also excluded are those establishments
primarily engaged in renting or leasing real property (land and
buildings). They are classified in the Real Estate subsector. Those
establishments that primarily engage in renting or leasing equipment
with operators are classified in various subsectors of NAICS depending
on the nature of the service provided (for example, Transportation or
Construction). These activities are excluded from this subsector since
the lessee is paying for the expertise and knowledge of the equipment
operator, in addition to the rental of the equipment. In many cases,
such as the rental of heavy construction equipment, the operator is
essential to operate the equipment. Likewise, because the provision of
crop harvesting services includes both the equipment and operator, it
is included in the agriculture subsector. The rental or leasing of
intangibles or intellectual property is, for the most part, classified
in the following proposed subsectors or sectors: Information;
Professional, Scientific and Technical Services; and Arts,
Entertainment and Recreation. The choice of industry is based on the
nature and origin of the intangible property being made available for
rental or leasing.
This subsector is subdivided into three industry groups.
Establishments primarily engaged in rental and leasing of passenger
cars, trucks and utility trailers comprise one industry group. This
reflects the increasingly common practice of leasing these types of
equipment, particularly passenger cars. These establishments generally
operate a retail-like facility, some offer only short term rental,
others only longer term leases, and some provide both type of services.
The second industry group includes establishments primarily engaged
in renting and leasing personal and household goods. Establishments
classified in this industry group often operate from a retail like or
storefront facility and normally offer rental and leasing of goods for
relatively short periods of time.
The third industry group includes establishments primarily engaged
in renting and leasing machinery and equipment. The types of
establishments included in this industry group are generally involved
in providing capital or investment type equipment that clients use in
their business operations. These operations are typically characterized
by a business to business relationship and do not generally involve a
retail like facility or operation.

Limitations and Constraints of the Classification

The proposed classification structure does not provide for complete
coverage of all rental and leasing activity. There are a number
establishments engaged in rental, leasing and related activities
included in other areas of the classification. The most important are
establishments renting and leasing transportation equipment with
operators, establishments providing financing for lease arrangements
(Finance and Insurance sector) and those renting and leasing real
estate (Real Estate subsector). In addition, the structure excludes the
distribution arm of manufacturers that use leasing as an alternative
means of distributing their parent company's products. These
establishments' production processes are more like the sector to which
they have been assigned than to the production process of
establishments included in the Rental and Leasing subsector.
The categories in this subsector are based on production processes.
Because of this it does not allow for the analysis of rental and
leasing activities by market segment. Some of the industries in the
proposed structure cater primarily to businesses and others cater
primarily to households; many establishments cater to both businesses
and households. Establishments renting passenger cars and those renting
home and garden tools are perhaps the best examples.

Relationship to ISIC

Four of the nine proposed industries are contained within Division
71, Renting of Machinery and Equipment without Operator, of the current
International Standard Industrial Classification of all Economic
Activities (ISIC, Revision 3) of the United Nations. The following
NAICS industry cannot be assigned to an ISIC division without being
subdivided: Other Rental and Leasing of Consumer Goods industry that
includes components of Division 71, Renting of Machinery and Equipment
without Operator and of Personal and Household Goods and Division 92,
Recreational, Cultural and Sporting Activities (rental of recreational
equipment). However, these are small activities and should not
significantly affect comparability between this NAICS subsector and
ISIC Division 71. The remaining five proposed industries are contained
within ISIC Division 71 and ISIC Division 65, Financial Intermediation,
Except Insurance and Pension Funding (financial leasing). All
establishments involved in direct leasing are classified in the Rental
and Leasing subsector in NAICS regardless of the type of lease
contract.

Changes to National Classifications

For Canada, the adoption of a Rental and Leasing subsector
represents a significant departure from its current practice. Although
the 1980 Canadian Standard Industrial Classification (CSIC) contains
two industry groups for this type of activity, CSIC 991, Machinery and
Equipment Rental and Leasing Services, and CSIC 992, Automobile and
Truck Rental and Leasing Services, many rental and leasing activities
are distributed throughout the classification. The proposed NAICS
structure consolidates most rental and leasing activities here.
The most important structural change is the transfer to this
subsector of the following activities: rental and leasing, without
operators, of airplanes, ships and railway equipment from the
transportation subsector (CSIC's 4522, 4532, 4544); rental and leasing
of computer and related equipment from the computer services industry
(CSIC 7721); and rental and leasing of a variety of recreational
equipment from the Amusement and Recreational Services major group
(CSIC 96). Since many of these activities are components of existing
industries, there is a significant number of partial relationships
between the proposed and existing classifications.

[[Page 26616]]

The content of existing rental and leasing industries has also been
distributed among the proposed industries. For example, it is proposed
to classify the rental and leasing of passenger automobiles and of
trucks and recreational vehicles in different industries; these
activities are currently classified in the same industry CSIC 9921,
Automobile and Truck Rental and Leasing Services. Similarly, the major
components of CSIC 9912, Rental and Leasing of Audiovisual Equipment
(consumer electronics, home movies and audiovisual equipment for the
trade), are assigned to three different NAICS industries.
For Mexico, this subsector includes 13 classes of CMAP: one of
these classes is the equivalent of one NAICS industry; five CMAP
classes make up four NAICS industries, and seven of the remaining CMAP
classes are combined to create six NAICS industries. These final
classes are not new but rather represent combinations of existing CMAP
classes.
The rental and leasing subsector presents two important changes
with respect to CMAP. The first is the reclassification of the services
of buses rented without chauffeur that was classified in CMAP 711318,
Scholastic Transportation Services and Tourism, and the rental of
automobiles without chauffeur that was classified in CMAP 711319,
Rental Services of Automobiles.
The second change refers to the separation of the CMAP 831121,
Services of Television Rental, Sound Equipment, Videocassettes and
Musical Instruments, that is divided into three parts: video rental
centers and rental centers for appliances and electronics are in the
same industry in NAICS, and the third part of the CMAP rental class,
rental of musical instruments, has been combined with the rental of
compact disks to create another NAICS industry.
For the United States, the proposed NAICS structure includes 1987
SIC Industry Group 751, Automotive Rental and Leasing, Without Drivers;
1987 SIC Industry Group 735, Miscellaneous Equipment Rental and
Leasing; 1987 SIC 7377, Computer Rental and Leasing; 1987 SIC 7841,
Video Tape Rental; 1987 SIC 4741, Rental of Railroad Cars; and
components of other transportation, personal, motion picture, amusement
service, and miscellaneous business credit institutions industries.
These changes are designed to bring together establishments that
primarily rent or lease a wide variety of machinery or goods to
individuals or businesses. While in most of these cases, the whole 1987
industry group is moving to the new NAICS subsector, selected 1987 4-
digit industries are split to better define rental and leasing
activities. This is particularly true in the case of 1987 SIC 7359,
Equipment Rental and Leasing, NEC, that has been substantially reduced
in size by the redistribution of activities formerly classified there.

Achievement of Objectives

The proposed classification structure meets the objectives for the
North American Industry Classification System (NAICS) in that it
comprises industries that group establishments with similar production
processes and achieves comparability for the three participating
countries. The NAICS structure consolidates rental and leasing of
equipment and goods in one subsector and provides a structure, as well
as individual industries, that recognizes specialized segments within
the subsector.
The industries are economically significant. Some NAICS industries
are larger than others, but this was necessary to ensure comparability
among the countries or because it was not possible to subdivide large
industries.
Finally, disruptions to time series, while they exist, have been
minimized to the extent possible. Most of the changes reflect the
regrouping of diverse residual categories to create new industries that
better define the activities.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the NAICS industry subsector
presented in Part X, Section A--Attachment I, contain less detail than
is currently in the U.S. SIC system, and less detail than is required
to meet important analytical requirements in the U.S. The three country
agreement on NAICS envisions that each country may develop national
detailed industries below the NAICS industry level, so long as the
national detail can be aggregated to the NAICS classification, thus
assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS
industry subsector covered in Part X of this notice. For cases where no
5-digit detail is shown, the ECPC is proposing that the NAICS 4-digit
industries will also represent the most detailed U.S. industries.

[[Page 26617]]

XXXX............... Rental of Formal Wear and N *7299 Miscellaneous Personal Services,
Costumes. NEC (costume, dress suit, and
tuxedo rental).
*7819 Services Allied to Motion Picture
Production (wardrobe rental for
motion picture film production).
XXXX............... Rental of Video Tapes..... E 7841 Video Tape Rental.
XXXX............... Other Rental and Leasing
of Consumer Goods:
XXXXX.............. Rental and Leasing of N *7352 Medical Equipment Rental and
Home Health Furniture Leasing (home health furniture
and Equipment. and equipment rental and
leasing).
XXXXX.............. Rental of Recreational N *7999 Amusement and Recreation
Goods. Services, NEC (canoe, pleasure
boats, bicycles, motorcycles,
moped, go carts, etc. rental).
XXXXX.............. All Other Rental and R *7299 Miscellaneous Personal Services,
Leasing of Consumer NEC (locker rental, except cold
Goods. storage).
*7359 Equipment Rental and Leasing, NEC
(except transportation
equipment, industrial equipment,
and consumer electronics,
appliances and home and garden
equipment).
XXX................ Rental and Leasing of
Machinery and Equipment:
XXXX............... Rental and Leasing of
Heavy Construction,
Transportation, Mining
and Forestry Machinery
and Equipment:
XXXXX.............. Rental and Leasing of N *4499 Water Transportation Services,
Commercial Air, Rail, NEC (ship rental, commercial).
and Water Transportation
Equipment.
*4741 Rental of Railroad Cars (rental
of railroad cars).
*6159 Miscellaneous Business Credit
Institutions (other heavy
transportation equipment finance
leasing, except automotive).
*7359 Equipment Rental and Leasing, NEC
(airplane rental and leasing).
XXXXX.............. Rental and Leasing of R *6159 Miscellaneous Business Credit
Heavy Construction, Institutions (heavy machinery
Mining and Forestry and equipment finance leasing).
Machinery and Equipment.
7353 Heavy Construction Equipment
Rental and Leasing.
*7359 Equipment Rental and Leasing, NEC
(oil field and well drilling
equipment).
XXXX............... Rental and Leasing of N *6159 Miscellaneous Business Credit
Office Machinery and Institutions (office equipment).
Equipment.
*7359 Equipment Rental and Leasing
(office machine rental and
leasing).
7377 Computer Rental and Leasing.
XXXX............... Rental and Leasing of N *6159 Miscellaneous Business Credit
Other Machinery and Institutions (other).
Equipment.
*7352 Medical Equipment Rental and
Leasing (except invalid supplies
and home health furniture and
equipment).
*7359 Equipment Rental and Leasing, NEC
(industrial truck and equipment
rental and leasing).
*7819 Services Allied to Motion Picture
Production (motion picture
equipment rental).
*7922 Theatrical Producers (except
motion picture) and
Miscellaneous Theatrical
Services (theatrical equipment
rental).
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and
* means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

[[Page 26618]]

Office Machinery and Equipment Rental and Leasing of Office
Finance Leasing. Machinery and Equipment (pt).
Other Machinery and Equipment Rental and Leasing of Other
Finance Leasing. Machinery and Equipment (pt).
7299.................................... Miscellaneous Personal Services:
Formal Wear and Costume Rental Rental of Formal Wear and Costumes
(pt).
Locker Rental, Except Cold All Other Rental and Leasing of
Storage. Consumer Goods (pt).
[email protected] Medical Equipment Rental and
Leasing:
Home Health Furniture and Rental and Leasing of Home Health
Equipment Rental and Leasing. Furniture and Equipment.
Medical Machinery Rental and Rental and Leasing of Other
Leasing. Machinery and Equipment (pt).
7353.................................... Heavy Construction Equipment Rental and Leasing of Heavy
Rental and Leasing. Construction, Mining and Forestry
Machinery and Equipment pt).
[email protected] Equipment Rental and Leasing,
NEC:
Consumer Electronics and Rental of Consumer Electronics and
Appliances Rental and Leasing. Appliances.
Home and Garden Tools and Rental and Leasing of Home and
Equipment Rental and Leasing. Garden Equipment.
Residential Furniture, Party All Other Rental and Leasing of
Supplies, and All Other Consumer Goods (pt).
Miscellaneous.
Consumer Goods Rental and
Leasing:
Oilfield and Well Drilling Rental and Leasing of Heavy
Machinery and Equipment Construction, Mining and Forestry
Rental and. Machinery and Equipment (pt).
Airplane Rental and Leasing...
Rental and Leasing of Commercial
Air, Rail, and Water Transportation
Equipment (pt).
Office Machinery and Equipment Rental and Leasing of Office
Rental and Leasing. Machinery and Equipment (pt).
Industrial Trucks Rental and Rental and Leasing of Other
Leasing. Machinery and Equipment (pt).
7377.................................... Computer Rental and Leasing..... Rental and Leasing of Office
Machinery and Equipment (pt).
7513.................................... Truck Rental and Leasing, Rental and Leasing of Trucks Without
Without Drivers. Drivers, Utility Trailers and
Recreational Vehicles (pt).
7514.................................... Passenger Car Rental............ Rental of Passenger Cars Without
Drivers.
7515.................................... Passenger Car Leasing........... Leasing of Passenger Cars Without
Drivers (pt).
7519.................................... Utility Trailer and Recreational Rental and Leasing of Trucks Without
Vehicle Rental. Drivers, Utility Trailers and
Recreational Vehicles (pt).
7819.................................... Services Allied to Motion
Picture Production:
Wardrobe Rental for Motion Rental of Formal Wear and Costumes
Picture Film Production. (pt).
Motion Picture Equipment Rental and Leasing of Other
Rental. Machinery and Equipment (pt).
Talent Payment Services....... Payroll Services (pt) (Included in
Professional, Technical, and
Scientific Services subsector).
7841.................................... Video Tape Rental............... Rental of Video Tapes.
[email protected] Theatrical Producers (Except Rental and Leasing of Other
Motion Picture) and Machinery and Equipment (pt).
Miscellaneous Theatrical
Services.
Theatrical Equipment Rental... Rental and Leasing of Other
Machinery and Equipment (pt).
[email protected] Amusement and Recreation, NEC:
Recreational Goods Rental Rental of Recreational Goods (pt).
Including Pleasure Boats.
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and
* means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

Description of Changes to the U.S. System

Rental and Leasing Services--Fourteen industries are included in
this NAICS subsector. Nine of these are new industries; three are
revised 1987 SIC industries; and two are industries that existed in
1987. The primary focus of this subsector is to bring together, in one
subsector, those establishments that primarily rent or lease a wide
variety of machinery or goods to individuals or businesses. This
subsector is significantly shaped by the splitting apart and/or
regrouping of activities of 1987 SIC Industry Group 735, Miscellaneous
Equipment Rental and Leasing. Additionally, activities from other 1987
major groups are included here because of the similarity of their
production processes and to better achieve comparability with Mexico
and Canada. The following new industries were added for 1997:
Rental and Leasing of Trucks Without Drivers, Utility Trailers and
Recreational Vehicles from 1987 SIC 7513, Truck Rental and Leasing
Without Drivers; 1987 SIC 7519, Utility Trailers and Recreational
Vehicles Rental; and part of 1987 SIC 6159, Miscellaneous Business
Credit Institutions.
Rental of Consumer Electronics and Appliances from part of 1987 SIC
7359, Equipment Rental and Leasing, NEC.
Rental and Leasing of Home and Garden Equipment from part of 1987
SIC 7359, Equipment Rental and Leasing, NEC.
Rental of Formal Wear and Costumes from part of 1987 SIC 7299,
Miscellaneous Personal Services, NEC, and part of SIC 7819, Services
Allied to Motion Picture Production.
Rental and Leasing of Home Health Furniture and Equipment from part
of 1987 SIC 7352, Medical Equipment Rental and Leasing.

[[Page 26619]]

Rental of Recreational Goods from part of 1987 SIC 7999, Amusement
and Recreation Services, NEC.
Rental and Leasing of Commercial Air, Rail, and Water
Transportation Equipment from part of 1987 SIC 4499, Water
Transportation Services, NEC; part of 1987 SIC 4741, Rental of Railroad
Cars; part of 1987 SIC 6159, Miscellaneous Business Credit
Institutions; and part of 1987 SIC 7359, Equipment Rental and Leasing,
NEC.
Rental and Leasing of Office Machinery and Equipment from part of
1987 SIC 6159, Miscellaneous Business Credit Institutions; 1987 SIC
7377, Computer Rental and Leasing; and part of 1987 SIC 7359, Equipment
Rental and Leasing, NEC.
Rental and Leasing of Other Machinery and Equipment from part of
1987 SIC 6159, Miscellaneous Business Credit Institutions; part of 1987
SIC 7352, Medical Equipment Rental and Leasing; part of 1987 SIC 7359,
Equipment Rental and Leasing, NEC; part of 1987 SIC 7819, Services
Allied to Motion Picture Production; and part of 1987 SIC 7922,
Theatrical Producers (Except Motion Picture) and Miscellaneous
Theatrical Services
The following three 1997 industries were modified from their 1987
definitions:
Leasing of Passenger Cars Without Drivers from part of 1987 SIC
6159, Miscellaneous Business Credit Institutions and 1987 SIC 7515,
Passenger Car Leasing.
All Other Rental and Leasing of Consumer Goods from part of 1987
SIC 7299, Miscellaneous Personal Services, NEC, and part of 1987 SIC
7359, Equipment Rental and Leasing, NEC. This industry brings together
all miscellaneous rental and leasing of equipment and goods not
specified in any of the other NAICS industries because of the
similarity of production process among all of these activities
Rental and Leasing of Heavy Construction, Mining, and Forestry
Machinery and Equipment from part of 1987 SIC 6159, Miscellaneous
Business Credit Institutions; 1987 SIC 7353, Heavy Construction
Equipment Rental and Leasing; and part of 1987 SIC 7359, Equipment
Rental and leasing, NEC. This industry was modified for comparability
with Canada and Mexico.
The number of rental and leasing industries increased from 10 in
1987 to 14 in 1997. For time series linkage, 6 of the 10 1987
industries are comparable within three percent of the 1997 industries.
Most of the changes reflect the regrouping of diverse residual
categories to create new industries that better define the activities.
For example, new industries have been created from 1987 SIC 7359,
Equipment Rental and Leasing, NEC; 1987 SIC 7299, Miscellaneous
Personal Services, NEC; and 1987 SIC 7999, Amusement and Recreation
Services, NEC. These new industries include, among others, Rental and
Leasing of Heavy Construction, Transportation, Mining and Forestry
Machinery and Equipment; Rental and Leasing of Office Machinery and
Equipment; and Rental of Consumer Electronics and Appliances.

Part XI--Proposed New Industry Structure for Repair and Maintenance

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 21

This document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following industries:

Repair and Maintenance

The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on November 8 and November 9, 1995 in
Washington, D.C.

------------------------------------------------------------------------
Accepted Signature Date
------------------------------------------------------------------------
Canada.............................. /S/ Jacob Ryten........ 11/9/95
Mexico.............................. /S/ Enrique Ordaz...... 11/9/95
United States....................... /S/ Jack E. Triplett... 11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX Repair and Maintenance
XXX Automotive Repair and Maintenance
XXXX Automotive Mechanical and Electrical Repair and Maintenance
XXXX Automotive Body, Paint and Interior Repair
XXXX Other Automotive Repair and Maintenance
XXX Heavy and Industrial Machinery and Equipment Repair and
Maintenance
XXXX Heavy and Industrial Machinery and Equipment Repair and
Maintenance
XXX Electronic and Precision Equipment Repair and Maintenance
XXXX Electronic and Precision Equipment Repair and Maintenance
XXX Personal or Household Goods Repair and Maintenance
XXXX Home and Garden Equipment and Appliance Repair and Maintenance
XXXX Reupholstery and Furniture Repair
XXXX Footwear and Leather Goods Repair
XXXX Other Personal or Household Goods Repair and Maintenance

Attachment 2--North American Industrial Classification System

Draft Classification for:

Repair and Maintenance

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industry classification for these
industries.
The draft classification provides for the subsector Repair and
Maintenance. This subsector is further sub-divided into four industry
groups and nine industries. The placement of this subsector within the
NAICS structure has not yet been decided.

A General Outline

In the current classification systems of the three countries,
repair and maintenance establishments are included in many different
categories based on the type of item being repaired. Further, repair
and maintenance industries are dispersed among many industry categories
in ISIC. The NAICS structure brings together most types of repair and
maintenance establishments and categorizes them based on production
processes, that is, on the type of repair and maintenance activity
performed, and the necessary skills, expertise and processes that are
found in different repair and maintenance establishments.
Establishments included in the Repair and Maintenance subsector
apply skill and knowledge to restoring machinery, equipment and other
products to working order for customers. These establishments also
typically perform general or routine maintenance on such products to
ensure that they work efficiently and to prevent breakdown and
unnecessary repairs.
This subsector includes four industry groups, each based on the
type of repair and maintenance services provided and on the operating
characteristics of the establishments classified in the component
industries.
The Automotive Repair and Maintenance industry group includes
establishments involved in the repair and maintenance of motor
vehicles, both cars and trucks. Establishments

[[Page 26620]]

classified in the Automotive Mechanical and Electrical Repair and
Maintenance industry employ mechanics with specialized technical skills
to diagnose and repair the mechanical and electrical systems of motor
vehicles. The Automotive Body, Paint and Interior Repair industry
includes establishments with staff skilled in repairing or painting
automotive exteriors, or in repairing interiors. The Other Automotive
Repair and Maintenance industry includes establishments that provide a
variety of automotive care services that help to maintain vehicles but
that do not normally require the technical skill levels that
establishments in the other industries possess.
The Heavy and Industrial Machinery and Equipment Repair and
Maintenance industry group includes establishments that repair and
maintain transportation equipment, except motor vehicles, and other
heavy and industrial machinery and equipment.
The Electronic and Precision Equipment Repair and Maintenance
industry group includes establishments that repair electronic
equipment, such as computers and communications equipment, and other
highly specialized precision instruments. These establishments
typically have staff skilled in repairing items having complex,
electronic components.
The last industry group, Personal or Household Goods Repair and
Maintenance, includes establishments that repair a wide variety of
goods, most of which are personal and household goods such as garden
tools and home appliances.
The proposed subsector does not include all establishments that do
repair and maintenance. For example, a substantial amount of repair is
done by establishments that also manufacture machinery, equipment and
other goods. These establishments are included in the Manufacturing
sector in NAICS. Rebuilding of machinery and equipment for resale is
considered manufacturing in NAICS and therefore not included in this
subsector. In addition, repair of transportation equipment is often
provided by or based at transportation facilities (airports, seaports)
and these activities are included in the Transportation sector.
A particularly unique situation exists with repair of buildings.
Plumbing, electrical installation and repair, painting and decorating
and other construction-related establishments are often involved in
performing installation or other work on new construction as well as
providing repair services on existing structures. While some specialize
in repair, it is difficult to distinguish between the two types and all
have been included in the Construction sector.
This classification also does not delineate between repair services
provided to businesses versus those that serve households. Although
some industries primarily serve businesses and other households,
separation by class of customer is limited by the fact that many
establishments serve both businesses and households. Establishments
repairing computers and consumer electronics products are two examples
of such overlap.

Limitations and Constraints of the Classification

In the Repair and Maintenance subsector, most activities identified
in one country exist in the others. The way activities are combined in
establishments differs to some extent in the different countries.
Therefore, the NAICS structure contains somewhat less detail than the
existing classification systems of the three countries. The level of
specialization for repair services varies significantly among the three
countries and the NAICS levels reflect those for which common classes
can be established. For example, there are a significant number of
establishments in Mexico specializing in rebuilding automotive engines
as a repair service, and these are located in this subsector. In the
United States and Canada, owners of cars that need rebuilt engines
typically buy a factory rebuilt engine that is installed at an
automotive repair shop.

Relationship to ISIC

The approach adopted for NAICS, that of regrouping most repair
activities in a single subsector, is significantly different from the
approach employed in the current International Standard Industrial
Classification of all Economic Activities (ISIC, Revision 3) of the
United Nations. The most important difference is that ISIC classifies
establishments primarily engaged in the repair of most types of
machinery and equipment in the same industry as those manufacturing the
equipment. For example, the repair of printing equipment is included in
ISIC, 2929, Manufacture of Other Special Purpose Machinery. Repair
activities can be found in twenty-seven manufacturing industries
spanning seven 2-digit groups in ISIC. Repair activities also are found
in ISIC Division 50, Sale, Maintenance and Repair of Motor Vehicles and
Motorcycles, Retail Sales of Automotive Fuel; Division 52, Retail
Trade, Except of Motor Vehicles and Motorcycles, Repair of Personal and
Household Goods; and Division 72, Computer and Related Activities.
Largely as a result of the conceptual difference, four of the nine
proposed NAICS industries relate to more than one 2-digit ISIC. These
are: Heavy and Industrial Machinery & Equipment Repair and Maintenance
(three 2-digit ISIC's); Electronic and Precision Equipment Repair and
Maintenance (six 2-digit ISIC's); Home and Garden Equipment and
Appliance Repair and Maintenance (four 2-digit ISIC's); and Other
Personal or Household Goods Repair and Maintenance (seven 2-digit
ISIC's).

Changes to National Classification

For Canada, the adoption of a Repair and Maintenance subsector
represents a major departure from its current practice. The 1980
Canadian Standard Industrial Classification (CSIC) assigns repair and
maintenance activities to many subsectors including Retail Trade,
Wholesale Trade, Business Services and Personal and Household Services.
The proposed NAICS structure consolidates most repair and maintenance
activities in this subsector.
The most important structural change is the transfer to this
subsector of the following activities: the repair and maintenance of
automobiles, home appliances, consumer electronics, furniture,
recreational vehicles, bicycles, musical instruments and watches and
jewelry from retail trade; the repair and maintenance of a wide range
of machinery and equipment from wholesale trade; the repair and
maintenance of computer and related equipment from business services;
and the repair of shoes, leather goods and clothing from personal
services. Since many of these activities are components of existing
industries, there are a significant number of partial relationships
between the proposed and existing classifications, in particular for
wholesale trade industries. In practice, however, the number of
establishments moving from the Wholesale Trade sector to the Repair and
Maintenance subsector is small. The repair and maintenance of machinery
and equipment is often a secondary activity of wholesalers of the
machinery and equipment and the number of establishments specializing
in repairs is relatively small.
More often than not, the repair and maintenance activities
currently found in retail trade, business services and personal
services are classified in separate industries. As a result, the
relationship between the new and old classifications is more
straightforward. Furthermore, a number of the existing

[[Page 26621]]

industries will be retained in the national classification, thereby
facilitating the comparison between statistics compiled on the basis of
the two systems.
For Mexico, there were fewer changes since CMAP class 96, Repair
and Maintenance Services, was the basis upon which NAICS was
established. Changes to CMAP included CMAP classes 951023, Other
Professional Technical Specialized Services not previously mentioned;
961203, Automotive Body Repair Services; and part of CMAP 961309,
Furniture Upholstery Services. These classes were merged to form a
single NAICS industry, Automotive Body, Paint and Interior Repair.
Finally, computer repair, CMAP 961106, Repair and Maintenance of
Machinery not previously mentioned, was combined with Electronic and
Precision Equipment Repair and Maintenance in NAICS.
For the United States, the proposed NAICS structure consolidates
most types of repair establishments into this NAICS subsector. The
structure primarily includes those industries covered by 1987 SIC Major
Group 76, Miscellaneous Repair Services, and 1987 SIC Industry Group
753, Automotive Repair Services. The new structure also includes
establishments classified in 1987 SIC 7542, Car Washes; part of 1987
SIC 7549, Automotive Services, Except Repair and Carwashes (oil change
and lubricating services, rustproofing services); 1987 SIC 7378,
Computer Maintenance and Repair; 1987 SIC 7251, Shoe Repair Shops and
Shoeshine Parlors; part of 1987 SIC 7219, Laundry and Garment Services,
NEC (repair of furs and apparel and reweaving of textiles); and part of
1987 SIC 3732, Boat Building and Repairing (repair services). Tire
retreading and electric motor rebuilding on a factory basis are
manufacturing activities and are now included in the Manufacturing
sector in NAICS.
The NAICS structure and U.S. national industry detail provide new
industry classifications for various types of industrial machinery and
equipment repair, electronic and precision equipment repair, and other
specialized repair and maintenance. Many of the new industries were
created by breaking apart 1987 SIC 7629, Electrical and Electronic
Repair Shops, NEC, and 1987 SIC 7699, Repair Shops and Related
Services, N.E.C.

Achievement of Objectives

The proposed classification structure meets the objectives for the
North American Industry Classification System (NAICS) in that it
comprises industries that group establishments with similar production
processes and achieves comparability for the three participating
countries. The NAICS structure consolidates repair and maintenance in
one subsector and provides a structure that includes specialized
segments within the subsector.
Other objectives of the NAICS project have also been met. New
industries that recognize new and emerging activities have been
established, particularly in the area of electronic and precision
equipment repair and maintenance.
The industries are economically significant. Some NAICS industries
are much larger than others, but this was necessary to ensure
comparability among the countries or because it was not possible to
subdivide large industries.
Finally, disruptions to time series, while they exist, have been
minimized to the extent possible. Most of the changes reflect the
regrouping of diverse residual categories to create new industries that
better define the activities.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the NAICS industry subsector
presented in Part XI, Section A--Attachment 1, contain less detail than
is currently in the U.S. SIC system, and less detail than is required
to meet important analytical requirements in the U.S. The three country
agreement on NAICS envisions that each country may develop national
detailed industries below the NAICS industry level, so long as the
national detail can be aggregated to the NAICS classification, thus
assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS
industry subsector covered in Part XI of this notice. For cases where
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

[[Page 26622]]

XXX................ Heavy and Industrial
Machinery and Equipment
Repair and Maintenance:
XXXX............... Heavy and Industrial
Machinery and Equipment
Repair and Maintenance:
XXXXX.............. Transportation Equipment N *3732 Boat Building and Repairing (boat
Repair and Maintenance. repair).
................ *7699 Repair Shops and Related
Services, NEC (other non-
automotive transportation
equip.).
XXXXX.............. Other Industrial R *7623 Refrigerator and Air-Conditioning
Machinery and Equipment Service and Repair Shops
Repair and Maintenance. (commercial refrigerator
equipment repair).
................ *7694 Armature Rewinding Shops
(repair).
................ *7699 Repair Shops and Related
Services, NEC (industrial
machines and equipment).
XXX................ Electronic and Precision
Equipment Repair and
Maintenance:
XXXX............... Electronic and Precision
Equipment Repair and
Maintenance:
XXXXX.............. Consumer Electronics N *7622 Radio and Television Repair Shops
Repair and Maintenance. (stereo, TV, VCR, and other
consumer electronics equipment).
................ *7629 Electrical and Electronic Repair
Shops, NEC (consumer equipment
except computer).
XXXXX.............. Computer and Office N 7378 Computer Maintenance and Repair.
Machine Repair and
Maintenance.
................ *7629 Electrical and Electronic Repair
Shops, NEC (business and office
machine repair, electrical).
................ *7699 Repair Shops and Related
Services, NEC (typewriter
repair).
XXXXX.............. Communication Equipment N *7622 Radio and Television Repair Shops
Repair and Maintenance. (telecommunication equipment
repair).
................ *7629 Electrical and Electronic Repair
Shops, NEC (telephone set
repair).
XXXXX.............. Other Electronic and N *7629 Electrical and Electronic Repair
Precision Equipment Shops, NEC (electrical measuring
Repair and Maintenance. instrument repair and
calibration, medical equipment
repair, electrical).
................ *7699 Repair Shops and Related
Services, NEC (dental instrument
repair, laboratory instrument
repair, medical equipment and
other electronic and precision
equipment repair, except
typewriters).
XXX................ Personal or Household Goods
Repair and Maintenance:
XXXX............... Home and Garden Equipment
and Appliance Repair and
Maintenance:
XXXXX.............. Home and Garden Equipment N *7699 Repair Shops and Related
Repair and Maintenance. Services, NEC (lawnmower repair
shops, sharpening and repairing
knives, saws and tools).
XXXXX.............. Appliance Repair and N *7623 Refrigeration and Air-
Maintenance. Conditioning Service and Repair
Shops (except commercial).
................ *7629 Electrical and Electronic Repair
Shops, NEC (appliance repair,
electrical; washing machine
repair; Electric razor repair).
................ *7699 Repairs Shops and Related
Services, NEC (gas appliance
repair service, sewing machine
repair, stove repair shops, and
other non-electrical appliance).
XXXX............... Reupholstery and Furniture E 7641 Reupholstery and Furniture
Repair. Repair.
XXXX............... Footwear and Leather Goods R 7251 Shoe Repair and Shoeshine
Repair. Parlors.
................ *7699 Repair Shops and Related Services
(leather goods repair shops,
luggage repair shops, pocketbook
repair shops).
XXXX............... Other Personal or N *7219 Laundry and Garment Services, NEC
Household Goods Repair (alteration and repair).
and Maintenance.
................ 7631 Watch, Clock, and Jewelry Repair.
................ 7692 Welding Repair.
................ *7699 Repair Shops and Related
Services, NEC (except
industrial, electronic, home and
garden, appliance, and leather
goods).
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and
* means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

[[Page 26623]]

7219.................................... Laundry and Garment Services, Other Personal or Household Goods
NEC (Alteration and Repair). Repair and Maintenance (pt).
7251.................................... Shoe Repair Shops and Shoeshine Footwear and Leather Goods Repair
Parlors. (pt).
7378.................................... Computer Maintenance and Repair. Computer and Office Machine Repair
and Maintenance (pt).
7532.................................... Top, Body, and Upholstery Repair Automotive Body, Paint, and
Shops and Paint Shops. Upholstery Repair and Maintenance.
7533.................................... Automotive Exhaust System Repair Automotive Exhaust System Repair.
Shops.
[email protected] Tire Retreading and Repair
Shops:
Remanufacturing............... Manufacturing Sector.
Repair........................ All Other Auto Repair and
Maintenance (pt).
7536.................................... Automotive Glass Replacement Automotive Glass Replacement Shops.
Shops.
7537.................................... Automotive Transmission Repair Automotive Transmission Repair.
Services.
7538.................................... General Automotive Repair General Automotive Repair.
Services.
7539.................................... Automotive Repair shops, NEC.... Other Automotive Mechanical and
Electrical Repair and Maintenance.
7542.................................... Carwashes....................... Car Washes.
[email protected] Automotive Services, Except
Repair and Carwashes:
Lubricating Services, Automotive Oil Change and
Automotive. Lubrication Shops.
Towing........................ Towing Services (Included in
Transportation sector).
Automotive Services, Except All Other Automotive Repair and
Repair and Carwashes (except Maintenance (pt).
lubricating and towing).
7622.................................... Radio and Television Repair
Shops:
Stereo, TV, VCR, and Other Consumer Electronics Repair and
Consumer Electronics Maintenance (pt).
Equipment.
Telecommunication Equipment Communication Equipment Repair and
Repair. Maintenance (pt).
[email protected] Refrigeration and Air-
Conditioning Services and
Repair Shops:
Commercial Refrigerator Other Industrial Machinery and
Equipment Repair. Equipment Repair and Maintenance
(pt).
Except Commercial............. Appliance Repair and Maintenance
(pt).
[email protected] Electrical and Electronic Repair
Shops, NEC:
Business and Office Machine Computer and Office Machine Repair
Repair, Electrical. and Maintenance (pt).
Telephone Set Repair.......... Communication Equipment Repair and
Maintenance (pt).
Electrical Measuring Other Electronic and Precision
Instrument Repair and Equipment Repair and Maintenance
Calibration, Medical (pt).
Equipment Repair, Electrical.
Appliance Repair, Electrical; Appliance Repair and Maintenance
Washing Machine Repair; (pt).
Electric Razor Repair.
Consumer Electronic Equipment Consumer Electronics Repair and
Repair Except Computer. Maintenance (pt).
[email protected] Watch, Clock, and Jewelry Repair Other Personal or Household Goods
Repair and Maintenance (pt).
7641.................................... Reupholstery and Furniture Reupholstery and Furniture Repair.
Repair.
[email protected] Welding Repair.................. Other Personal or Household Goods
Repair and Maintenance (pt).
[email protected] Armature Rewinding Shops:
Repair........................ Other Industrial Machinery and
Equipment Repair and Maintenance
(pt).
Remanufacturing............... Included in Manufacturing Sector.
[email protected] Repair Shops and Related
Services, NEC:
Other Non-Automotive Transportation Equipment Repair and
Transportation Equipment. Maintenance (pt).
Industrial Machines and Other Industrial Machinery and
Equipment. Equipment Repair and Maintenance
(pt).
Typewriter Repair............. Computer and Office Machine Repair
and Maintenance (pt).
Dental Instrument Repair, Other Electronic and Precision
Laboratory Instrument Repair, Equipment Repair and Maintenance
Medical Equipment and Other (pt).
Electronic and Precision.
Equipment Repair, Except
Typewriters:
Lawnmower Repair Shops, Home and Garden Equipment Repair and
Sharpening and Repairing Maintenance (pt).
Knives, Saws and Tools.
Gas Appliance Repair Service, Appliance Repair and Maintenance.
Sewing Machine Repair, Stove
Repair Shops, and Other Non-
Electrical Appliances.
Leather Goods Repair Shops, Footwear and Leather Goods Repair
Luggage Repair Shops, (pt).
Pocketbook Repair Shops.
Lock Parts Made to Order and (Included in Management and Support
Locksmith Shops. Services subsector).

[[Page 26624]]

Except Industrial, Other Personal or Household Goods
Electronic, Home and Garden, Repair and Maintenance.
Appliance, Locksmith, and
Leather Goods.
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of''. @ means time series break has been created that is greater than 3% of
the 1992 revenues for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere Classified.

Description of Changes to the U.S. System

Repair and Maintenance--Nine new NAICS or national industries were
created in this new subsector for 1997 to better describe the
activities associated with the subsector and to bring together
activities with similar production functions. A number of these
industries were created from parts of two 1987 Not Elsewhere Classified
(NEC) industries. The new industries are:
Automotive Oil Change and Lubrication Shops from part of 1987 SIC
7549, Automotive Services, Except Repair and Carwashes.
Transportation Equipment Repair and Maintenance from part of 1987
SIC 3732, Boat Building and Repairing, and part of 1987 SIC 7699,
Repair Shops and Related Services, NEC.
Consumer Electronics Repair and Maintenance from part of 1987 SIC
7622, Radio and Television Repair Shops, and part of 1987 SIC 7629,
Electrical and Electronic Repair Shops, NEC.
Computer and Office Machine Repair and Maintenance from 1987 SIC
7378, Computer Maintenance and Repair; part of 1987 SIC 7629,
Electrical and Electronic Repair Shops, NEC; and part of 1987 SIC 7699,
Repair Shops and Related Services, NEC.
Communication Equipment Repair and Maintenance from part of 1987
SIC 7622, Radio and Television Repair Shops, and part of 1987 SIC 7629,
Electrical and Electronic Repair Shops, NEC.
Other Electronic and Precision Equipment Repair and Maintenance
from part of 1987 SIC 7629, Electrical Electronic Repair Shops, NEC,
and part of 1987 SIC 7699, Repair Shops and Related Services, NEC.
Home and Garden Equipment Repair and Maintenance from part of 1987
SIC 7699, Repair Shops and Related Services, NEC.
Appliance Repair and Maintenance from part of 1987 SIC 7623,
Refrigeration and Air-Conditioning Service and Repair Shops; part of
1987 SIC 7629, Electrical and Electronic Repair Shops, NEC; and part of
1987 SIC 7699, Repair Shops and Related Services, NEC.
Other Personal or Household Good Repair and Maintenance from part
of 1987 SIC 7219, Laundry and Garment Services, NEC; 1987 SIC 7631,
Watch, Clock, and Jewelry Repair; 1987 SIC 7692, Welding Repair; and
part of 1987 SIC 7699, Repair Shops and Related Services, NEC.
The 1987 SIC Major Group 76, Miscellaneous Repair Services, was
split into 3 new industry groups: Heavy and Industrial Machinery and
Equipment Repair and Maintenance; Electronic and Precision Equipment
Repair and Maintenance; and Personal and Household Goods Repair and
Maintenance. Of the 8 industries in 1987 Major Group 76 only two, Radio
and Television Repair and Reupholstery and Furniture Repair, will not
have a time series break. There will be time series breaks for the
other six 1987 SIC industries. These changes were made to break up the
miscellaneous industries and to more clearly define industries with
similar production functions.
There will also be a time series break for 1987 SIC's 7534 and
7549. The time series break for 1987 SIC 7534, Tire Retreading and
Repair Shops, is the result of moving the remanufacturing portion of
retreading to the manufacturing sector and the repair to All Other Auto
Repair and Maintenance. The time series break for 1987 SIC 7549 is the
result of splitting oil change and lubrication shops and towing
services from all other automotive repair, Automotive Services, Except
Repairs and Carwashes, and maintenance.

Part XII--Proposed New Industry Structure for Management and Support
Services

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 22

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following industries: Management and Support Services.
The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on November 8 and November 9, 1995 in
Washington, D.C.

------------------------------------------------------------------------
Accepted Signature Date
------------------------------------------------------------------------
Canada.............................. /S/ Jacob Ryten........ 11/9/95
Mexico.............................. /S/ Enrique Ordaz...... 11/9/95
United States....................... /S/ Jack E. Triplett... 11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX Management and Support Services
XXX Management and Facilities Support Services
XXXX Management Services
XXXX Facilities Support Management Services
XXX Employment Services
XXXX Employment Placement Agencies
XXXX Temporary Help Services
XXXX Employee Leasing Services
XXX Administrative Support Services
XXXX Document Preparation Services
XXXX Telephone Call Centers
XXXX Business Service Centers
XXXX Collection Agencies
XXXX Credit Bureaus
XXXX Other Administrative Support Services
XXX Travel Arrangement and Reservation Services
XXXX Travel Agencies
XXXX Tour Operators
XXXX Other Travel Arrangement and Reservation Services
XXX Security and Investigation Services
XXXX Investigation, Guard and Armored Car Services
XXXX Security Systems Services
XXX Services to Buildings and Dwellings

[[Page 26625]]

XXXX Exterminating and Pest Control Services
XXXX Janitorial Services
XXXX Carpet and Upholstery Cleaning Services
XXXX Landscaping Care and Maintenance Services
XXXX Other Services to Buildings and Dwellings
XXX Miscellaneous Support Services
XXXX Packaging and Labeling Services
XXXX Convention and Trade Show Organizers
XXXX Other Miscellaneous Support Services

Attachment 2--North American Industry Classification System

Draft Classification for:

Management and Support Services

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industry classification for these
industries.
The draft classification provides for the Management and Support
Services subsector. This subsector is further sub-divided into seven
industry groups and 24 industries. The placement of this subsector
within the NAICS structure is not yet determined.

A General Outline

The statistical agencies of Canada, Mexico, and the United States
have agreed to place major emphasis on improved services
classifications in NAICS, and to give special attention to developing
production-oriented classifications for new and emerging industries and
service industries in general.
Most past services classifications, including the International
Standard Industrial Classification of all Economic Activities (ISIC,
Revision 3) have two analytical inadequacies. First, individual
services industries have been too aggregated to be useful. They have
combined too many disparate activities into a single industry
definition. This criticism has been heard even in the U.S., where the
1987 Standard Industrial Classification has more services industries
detail than is the case for other classification systems. As indicated
later in this outline, the detail problem has been addressed in NAICS
by breaking out new services industries from many of the broad and
heterogeneous industry definitions in the former systems of all three
countries. These new industries reflect the increasing degree of
specialization in the economy as businesses and other organizations
increasingly contract out for services that have historically been done
in house. In order to meet this objective, a number of industries were
established that are presently small or nonexistent in Canada or
Mexico. Many of the establishments in these new industries are included
in miscellaneous classes in current classification systems and the
NAICS structure will substantially reduce the size of such residual
classes.
A second problem in past services industry classifications is a
general lack of a coherent structure. To take the 1987 U.S. SIC system
as an example, though it has a major group (2-digit) for Business
Services, it is difficult to discern an organizational principle in
this subsector, or the relation the industries included in it had to
each other or to the division as a whole. The Canadian classification
also includes a grouping for Business Services, but its coverage is
different. Again, this lack of a coherent structure has been
criticized.
Currently, activities included in the Management and Support
Services subsector are scattered throughout the existing classification
systems; their grouping into a single area has allowed for the creation
of more homogeneous aggregates for these service-producing industries.
This, however, has been achieved at the expense of creating a subsector
less homogeneous across all industry groups contained in it than in
other proposed NAICS subsectors. However, the fundamental objective of
NAICS is to define industries and industry aggregates on the basis of
similarity in production process. This objective is largely met in the
case of the individual industries (4-digit) and industry groups (3-
digit) of this subsector, even though the subsector includes industry
groups that cover a diverse set of activities.
The Management and Support Services subsector groups establishments
that are engaged in activities that support the day-to-day operations
of other organizations. The processes employed in this sector are often
integral parts of the activities of establishments found in all sectors
of the economy (general management, personnel administration, clerical
activities, cleaning activities, etc.). The establishments classified
in this subsector have specialized in one or more of these
administrative and support activities, and can therefore provide
services to clients in a variety of industries and, in some cases, to
households. The individual industries of this subsector are defined on
the basis of the particular process in which they are engaged and the
particular service(s) they provide.
This proposed subsector includes a mix of well established and
emerging industries. The number of new classes varies from country to
country; approximately half of the proposed industries are new or
redefined in the Canadian and U.S. systems while most are new in the
Mexican system. The following paragraphs provide a brief description of
the content of each industry group and observations on issues that are
of particular interest.
The Management and Facilities Support Services industry group
includes two industries. The first, Management Services, includes those
establishments that provide management services to clients on a day-to-
day basis. For example, establishments in this industry may provide
management services to oversee and coordinate the office operations of
a physician's practice. This might include personnel management,
bookkeeping, and other administrative services. The second NAICS
industry, Facilities Support Management Services, includes
establishments that provide managerial and operating staff to deliver a
wide range of services that are essential to support the operations of
an establishment or facility. Such establishments provide food service,
janitorial service, guard service and so forth to support the
operations of facilities such as hospitals or government reservations.
If each of the services were provided by different establishments,
these different establishments would be included in the appropriate
industries. However, these facility management establishments are
unique in that they provide a broad mix of services that involve
multiple production processes. This industry is significant in the
United States with the largest operations being establishments that
serve government facilities or reservations. It is not significant in
Canada and Mexico.
The Employment Services industry group includes three industries.
Employment Placement Agencies are establishments engaged in listing
employment vacancies and in selecting, referring and placing applicants
in employment on either a permanent or temporary basis. A separate
industry, Temporary Help Services, is included for establishments that
supply workers to client businesses for limited periods of time to
supplement the work force of the client. Another industry, Employee
Leasing Services, is included for establishments that acquire all or
part of a client's work force and ``lease back'' the employees to the
client organization. Both industries are large and growing in the
United States, reflecting the increasing specialization and complexity
of the U.S. economy. Employee leasing is not significant in Canada and
Mexico.

[[Page 26626]]

The Administrative Support Services industry group includes
establishments engaged in document preparation, telephone call center
operation, copy or quick printing services, and mail center operation,
bill collection and similar activities. These activities are those
ongoing routine, administrative support functions that all businesses
and organizations must do and that they have traditionally done for
themselves. Recent trends are to contract or purchase such services
from businesses that specialize in such activities and can therefore
provide the services more efficiently. While most of the industries in
this group are relatively small, some are growing rapidly and are
expected to continue to grow.
The Travel Arrangement and Reservation Services industry group
includes travel agents, tour operators and providers of other travel
arrangement services such as hotel and restaurant reservations, and
arranging the purchase of tickets. Establishments in this industry
serve many types of clients, including individual consumers, and the
industries in this group cannot be viewed as strictly ``support.''
However, this industry group was placed in this subsector because the
services are often of the ``support'' nature (for example, travel
arrangement) and businesses and other organizations are increasingly
the ones purchasing such services.
The Security and Investigation Services industry group includes
establishments engaged in a range of security related activities such
as guard and patrol services and alarm monitoring services. The desire
to contract out for such services and the impact of new, sophisticated
electronic security systems has contributed to the size and growth of
the industries in this industry group.
The Services to Buildings and Dwellings industry group includes
establishments engaged in a range of general cleaning and upkeep
services in and around buildings and dwellings. As in other subgroups,
growth in this industry group is primarily from the increasing reliance
of businesses and other organizations to contract out for building
cleaning services.
Finally, Miscellaneous Support Services includes establishments
engaged in such activities as packaging and labeling services,
organizing conventions, etc. Establishments in the Packaging and
Labeling Services industry are primarily engaged in packaging client
owned materials such as food products, pharmaceuticals, household
cleaners, toilet preparations and hardware using a variety of automated
or manual packaging techniques, including blister forming and
packaging, shrink or skin wrapping, form filling and sealing, pouch
filling and aerosol packaging. The packaging service may include the
labeling or imprinting of the package. Although the types of
establishments in this industry group are not similar in nature, each
industry in its own way provides some form of support service to
businesses and organizations.

Limitations and Constraints of the Classification

Differences in the organization of activities within
establishments, and differences in the economic significance of
individual industries from country to country were the major issues
faced in the development of a common classification structure for this
sector. These issues were dealt with by grouping activities in a manner
that recognized the different levels of integration and diversification
of establishments while allowing each country to add industries where
necessary to reflect the greater level of specialization or economic
significance of particular industries in their national economy. Still,
in some instances, proposed NAICS industries do not exist in all
countries.
This subsector is not as homogeneous across all industry groups as
other proposed subsectors in NAICS.
The identification of new and emerging industries is one of the
principle goals of the NAICS project. Many users have expressed the
wish that this goal be achieved while minimizing breaks in time series.
However, these two objectives are more often than not conflicting, and
the degree to which proposed NAICS industries relate to existing
national classification systems varies from country to country.

Relationship to ISIC

Seventeen of the NAICS industries in this subsector can be assigned
entirely to ISIC Division 74, Other Business Activities, of the current
International Standard Industrial Classification of all Economic
Activities (ISIC, Revision 3) of the United Nations. Landscaping Care
and Maintenance Services are included in ISIC Division 01, Agriculture,
Hunting and Related Service Activities; the Travel Arrangement and
Reservation Services industries are included in ISIC Division 63,
Supporting and Auxiliary Transport Activities; and Carpet and
Upholstery Cleaning Services are included in ISIC Division 93, Other
Service Activities. The following NAICS industries cannot be assigned
to an ISIC division without being subdivided: Employment Placement
Agencies (casting bureaus are in Division 92, Recreational, Cultural
and Sporting Activities in ISIC) and Miscellaneous Support Services.
However, the discrepancies between NAICS and ISIC are minor and do not
have a significant impact on the comparability of data at 2-digit ISIC
level.

Changes to the National Classification

For Canada, the proposed NAICS structure constitutes a
restructuring and expansion of industries that are, for the most part,
currently found in Major Group 77, Business Service Industries;
Industry Group 995, Services to Buildings and Dwellings; and Industry
Group 996, Travel Services, of the 1980 Canadian Standard Industrial
Classification (CSIC). A few activities classified in other areas of
the classification are now included in this subsector. Fifteen of the
twenty-two NAICS industries applicable in Canada are new or redefined.
The most important new industries are: Management Services; Document
Preparation Services; Telephone Call Centers; Business Service Centers;
Investigation, Guard and Armored Car Services; Security Systems
Services, Landscaping Care and Maintenance Services; Packaging and
Labeling Services; and Convention and Trade Show Organizers.
The majority of proposed NAICS industries (15) relate to only one
existing CSIC industry. In those cases, the task of linking statistics
based on the old and new systems is relatively easy. For the remaining
classes, this task is much more difficult since they are defined in
terms of components of existing industries for which no data are
available. However, many of these partial relationships are marginal in
terms of economic activity.
For Mexico, this subsector that includes 24 industries contains 17
of the current CMAP classes. This increase in the number of classes
results from the fact that there is now more specialization in Mexico
in many service activities. Services that used to be performed in
combination with others within a single establishment, including those
performed as a secondary activity of the establishment, are now
beginning to be carried out as a principal activity in establishments
specializing in that particular service. For that reason, this new
classification includes classes that were not even mentioned in the
CMAP owing to their secondary status, and classes that had been
included with other activities.

[[Page 26627]]

The activities being incorporated into this subsector are currently
classified, for the most part, in CMAP Branch 9510, Provision of
Professional, Technical, and Specialized Services, excluding
Agricultural Services. Nevertheless, in order to create the new
subsector, some activities that had been in other branches or
subsectors, and even in a different sector of activity, were relocated.
From CMAP Sector 7, Transportation and Communications, fax services
that had been classified under CMAP Class 720006, Other
Telecommunications Services, were reclassified. They were combined with
Photocopying Services and Business Center Services to form a new NAICS
industry.
From CMAP Subsector 94, Entertainment, Cultural, Recreational, and
Athletic Services, there was a reclassification of establishments
engaged in the hiring of personnel for cinematographic and theatrical
production that had been included under CMAP Classes 941101, Private
Production of Cinematographic Films; 941106 Private Services for the
Promotion, Staging and Presentation of Artistic Productions; and 941204
Public Services of Promotion, Staging, and Presentation of Artistic
Productions. These recruitment agencies were combined with personnel
placement agencies to form a single NAICS industry.
From CMAP Subsector 97, Services Related to Agriculture,
Stockraising, Construction, Transportation, Finance and Commerce, there
was a reclassification of telemarketing establishments and
establishments engaged in advance sales of tickets, that had been under
class 975000, Financial Intermediary Services. Telemarketing services
combined with establishments that make and receive telephone calls were
placed in a single NAICS industry under the Administrative Support
Services industry group. Services of establishments that sell tickets
in advance gave rise to a new NAICS industry when these services were
combined with hotel reservations that had been classified under CMAP
951023, Professional, Technical, and Specialized Services Not
Previously Mentioned.
From CMAP Branch 9530, Drycleaning and Laundering Services, there
was a reclassification of carpet cleaning and furniture cleaning
services that had previously been in CMAP Class 953002, Cleaning and
Dyeing of Carpets and Curtains. This branch was combined with carpet
cleaning that had been under CMAP 951021, Building Cleaning Services,
to form a new NAICS class called Carpet and Upholstery Cleaning
Services.
The current CMAP Class 951018, Services of Personnel Placement and
Selection Agencies, was subdivided into three parts. Two of them
resulted in the same number of NAICS industries, those being Temporary
Help Services and Employee Leasing Services. The other part was
combined with agencies for placement of personnel from television
works, cinematography, and theaters, that had been classified under
CMAP Subsector 94, Entertainment, Cultural, Recreational, and Athletic
Services, to form a new NAICS industry called Employment Placement
Agencies.
CMAP Class 951021, Building Cleaning Services, was subdivided into
four parts. Three of them resulted in the same number of industries in
NAICS, and another part was combined with Carpet and Upholstery
Cleaning Services that had been classified in CMAP 953002, Cleaning and
Dyeing of Carpets and Curtains, to create a new NAICS industry.
CMAP Class 951023, Other Professional, Technical, and Specialized
Services Not Previously Mentioned, that had contained several very
different types of services underwent a major realignment. The services
of CMAP Class 951023 relating to this subsector were combined with
activities that were similar in terms of their forms of production, and
each combination produced a new NAICS class. Telephone answering
services were combined with telemarketing services (the latter had been
classified in the CMAP under 975000, Financial Intermediary Services);
business center services were combined with photocopying establishments
(the latter had been classified under CMAP Class 951017, Photocopying
and Similar Services); and financial solvency agencies were combined
with credit information offices. Finally, a NAICS industry was formed
for Packaging and Labeling Services.
For the United States, eleven of the twenty-four proposed NAICS
industries are new. Of the eleven new industries in this sector, eight
were created from 1987 SIC 7389, Business Services, Not Elsewhere
Classified. 1987 SIC 7389 was a ``catchall'' category that included
some of the fastest growing services in the U.S. economy, and that had
no natural interpretation or usefulness. This former NEC industry is
significantly reduced by the creation of new industries. Examples of
the new industries that were created from 1987 SIC 7389 are: Telephone
Call Centers; Packaging and Labeling Services; and Convention and Trade
Show Organizers. In addition, other activities formerly included in
1987 SIC 7389 were redistributed among the industries to create
homogeneous industries or industry groupings. The redistributions out
of 1987 SIC 7389 will reduce its overall size by approximately 40% of
the establishments and receipts. In addition, the remainder are
redistributed into NAICS industry groups that have more logic and
coherence than the 1987 SIC 73 major group, Business Services.
The NAICS industry group for Management and Facilities Support
Services groups activities with similar production processes previously
classified in 1987 SIC 8741, Management Services, and 1987 SIC 8744,
Facilities Support Management Services. Separate industries are created
for each.
The NAICS industry group for Employment Services includes one
significant change for the United States by including Temporary Help
Services and Employee Leasing Services as new industries. These
services are included in 1987 SIC 7363, Help Supply Services.
The NAICS industry group for Administrative Support Services
includes Document Preparation Services, Telephone Call Centers,
Business Service Centers and Other Administrative Support Services as
new industries. These services are included in 1987 SIC 7338,
Secretarial and Court Reporting Services, and 1987 SIC 7389, Business
Services, Not Elsewhere Classified.
The NAICS industry group for Services to Buildings and Dwellings
includes one previously existing industry from 1987 SIC Major Group 72,
Personal Services (1987 SIC 7217, Carpet and Upholstery Cleaning) and
two industries from 1987 SIC Major Group 07, Agriculture Services (1987
SIC 0782, Lawn and Garden Services; and 1987 SIC 0783, Ornamental Shrub
and Tree Services). A new industry for Other Services to Buildings and
Dwellings has been created from part of 1987 SIC's 7389, Business
Services, Not Elsewhere Classified, and 1987 SIC 7699, Repair Shops and
Related Services, Not Elsewhere Classified.
The NAICS industry group for Miscellaneous Support Services
includes three new industries formed from part of 1987 SIC 7389,
Business Services, Not Elsewhere Classified.

Achievement of Objectives

The classification meets the objectives for the North American
Industry Classification System (NAICS). It is comprised of industries
that group establishments with similar production

[[Page 26628]]

processes, that is, it applies the production-oriented economic
concept.
The classification achieves comparability for the three
participating countries. Based on existing data, all three countries
expect to be able to publish data regularly or in the near future at
the industry (4-digit) level of the structure. All countries agree on
the detailed definitions of the industries.
Other objectives of the NAICS project have been met. A significant
number of new industries are established which is consistent with the
goal of recognizing new and emerging industries.
The industries are economically significant. Some NAICS industries
are much larger than others, but this was necessary to ensure
comparability among the three countries.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the NAICS industry subsector
presented in Part XII, Section A--Attachment 1, contain less detail
than is currently in the U.S. SIC system, and less detail than is
required to meet important analytical requirements in the U.S. The
three country agreement on NAICS envisions that each country may
develop national detailed industries below the NAICS industry level, so
long as the national detail can be aggregated to the NAICS
classification, thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS
industry subsector covered in Part XII of this notice. For cases where
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

Table 1
----------------------------------------------------------------------------------------------------------------
1987
1997 NAICS and U.S. Status code SIC 1987 SIC description
description code
----------------------------------------------------------------------------------------------------------------
XX................. Management and Support ................ ....... .................................
Services:
XXX................ Management and Facilities ................ ....... .................................
Support Services:
XXXX............... Management Services....... R *8741 Management Services (except
construction management).
XXXX............... Facilities Support Management E 8744 Facilities Support Management
Services. Services.
XXX................ Employment Services: ................ ....... .................................
XXXX............... Employment Placement R *7361 Employment Agencies (except
Agencies. executive placing services).
................ *7819 Services Allied to Motion
Pictures Production (casting
bureaus).
*7922 Theatrical Producers and
Miscellaneous Theatrical
Services (casting agencies).
XXXX............... Temporary Help Services... N *7363 Help Supply Services (except
employee leasing service ).
XXXX............... Employee Leasing Services. N *7363 Help Supply Services (except
temporary help service ).
XXX................ Administrative Support ................ ....... .................................
Services:
XXXX............... Document Preparation N *7338 Secretarial and Court Reporting
Services. (except court reporting).
XXXX............... Telephone Call Centers: ................ ....... .................................
XXXXX.............. Telephone Answering N *7389 Business Services, Not Elsewhere
Services. Classified (telephone
answering).
XXXXX.............. Telemarketing Bureaus.... N *7389 Business Services, Not Elsewhere
Classified (telemarketing
bureaus and telephone
soliciting).
XXXX............... Business Service Centers: ................ ....... .................................
XXXXX.............. Photocopying and R *2752 Commercial Printing, Lithographic
Duplicating Services. (electrostatic, digital, and
nonimpact quick printing).
................ 7334 Photocopying and Duplicating
Services,
XXXXX.............. Private Mail Centers..... N *7389 Business Services, Not Elsewhere
Classified (private mail box
centers and mail box rental).
XXXX............... Collection Agencies....... R *7322 Adjustment and Collection
Services (except adjustment
bureaus).
XXXX............... Credit Bureaus............ E 7323 Credit Reporting Services.
XXXX............... Other Administrative
Support Services:
XXXXX.............. Repossession Services.... N *7322 Adjustment and Collection
(adjustment bureaus).
................ *7389 Business Services, Not Elsewhere
Classified (recovery and
repossession services).
XXXXX.............. Court Reporting and N *7338 Secretarial and Court Reporting
Stenotype Services. (except secretarial).
XXXXX.............. All Other Administrative N *7389 Business Services, Not Elsewhere
Support Services. Classified (administrative
support services except
telephone answering,
telemarketing bureaus, private
mail centers and repossession
services).
XXX................ Travel Arrangement and ................ ....... .................................
Reservation Services:
XXXX............... Travel Agencies........... E 4724 Travel Agencies.
XXXX............... Tour Operators............ E 4725 Tour Operators.
XXXX............... Other Travel Arrangement ................ 4729 Arrangement of Passenger
and Reservation Services. Transportation, Not Elsewhere
Classified.
XXXXX.............. Convention and Visitor N *7389 Business Services, Not Elsewhere
Bureaus. Classified (convention and
visitor bureaus, tourist
information bureaus).
XXXXX.............. All Other Travel N *7389 Business Services, Not Elsewhere
Arrangement and Classified (reservation systems:
Reservation Services. hotel & restaurants).
................ *7999 Amusement and Recreation
Services, Not Elsewhere
Classified (ticket agencies).
XXX................ Security and Investigation ................ ....... .................................
Services:
XXXX............... Investigation, Guard and ................ ....... .................................
Armored Car Services:

[[Page 26629]]

XXXXX.............. Investigation Services... N *7381 Detective and Armored Car
Services (detective services).
XXXXX.............. Security Guards and N *7381 Detective and Armored Car
Patrol Services. Services (guard services).
XXXXX.............. Armored Car Services..... N *7381 Detective and Armored Car
Services (armored car services).
XXXX............... Security Systems Services: ................ ....... .................................
XXXXX.............. Security Systems E 7382 Security Systems Services.
Services, except
Locksmiths.
XXXXX.............. Locksmiths............... N *7699 Repair Shops and Related
Services, Not Elsewhere
Classified (locksmith shops).
XXX................ Services to Buildings and ................ ....... .................................
Dwellings:
XXXX............... Exterminating and Pest R *7342 Disinfecting and Pest Control
Control Services. Services (exterminating and pest
control).
XXXX............... Janitorial Services....... R *7342 Disinfecting and Pest Control
Services (except exterminating).
................ 7349 Building Maintenance Services,
Not Elsewhere Classified.
................ *4581 Airports, Flying Fields, and
Airport Terminal Services
(airplane cleaning and
janitorial services).
XXXX............... Landscaping Care and ................ ....... .................................
Maintenance Services:
XXXXX.............. Lawn and Garden Services. E 0782 Lawn and Garden Services.
XXXXX.............. Ornamental Shrub and Tree E 0783 Ornamental Shrub and Tree
Services. Services.
XXXX............... Carpet and Upholstery E 7217 Carpet and Upholstery Cleaning.
Cleaning Services.
XXXX............... Other Services to Buildings N *7389 Business Services, Not Elsewhere
and Dwellings. Classified (swimming pool
cleaning and maintenance).
................ *7699 Repair Shops and Related
Services, Not Elsewhere
Classified (furnace, duct,
chimney cleaning and furnace
cleaning services).
XXX................ Miscellaneous Support .................................
Services:
XXXX............... Packaging and Labeling N *7389 Business Services, Not Elsewhere
Services. Classified (packaging and
labeling services).
XXXX............... Convention and Trade Show ................ *7389 Business Services, Not Elsewhere
Organizers. Classified (convention and trade
show services).
XXXX............... Other Miscellaneous N *7389 Business Services, Not Elsewhere
Support Services. Classified (business support
services except packaging and
labeling, convention and trade
shows services, convention and
visitor bureaus, tourist
information bureaus).
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E-existing industry; N-new industry; R-revised industry; and *
means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

[[Page 26630]]

Except Executive Placing Employment Placement Agencies (pt).
Services.
7363.................................... Help Supply Services:
Temporary Help Supply......... Temporary Help Services.
Employee Leasing Services..... Employee Leasing Services.
7381.................................... Detective, Guard, and Armored
Car Services:
Detective Services............ Investigation Services.
Guard Services................ Security Guards and Patrol Services.
Armored Car Services.......... Armored Car Services.
7382.................................... Security Systems Services....... Security Systems Services.
[email protected] Business Services, Not Elsewhere
Classified:
Telephone Answering Services.. Telephone Answering Services.
Telemarketing Bureaus and Telemarketing Bureaus.
Telephone Soliciting Services.
Private Mail Centers and Mail Private Mail Centers.
Box Rental.
Recovery and Repossess........ Repossession Services (pt).
Packaging and Labeling Packaging and Labeling Services.
Services.
Swimming Pool Cleaning and Other Services to Dwellings and
Maintenance. Buildings (pt).
Hotel and Restaurant Other Travel Arrangement and
Reservation Services. Reservation Services.
Convention and Trade Show Trade Show and Convention
Services. Organizers.
Convention and Visitors Convention and Visitors Bureaus.
Bureaus and Tourist
Information Service.
Administrative Support All Other Administrative Support
Services, Except Telephone Services.
Answering, Telemarketing
Bureaus, Private Mail
Centers, and Repossession
Services.
Business Support Services, Other Miscellaneous Support
Except Packaging and Labeling Services.
Services.
Convention and Trade Show Convention and Trade Show
Services. Organizers.
7699.................................... Repair Shops and Related
Services, Not Elsewhere
Classified:
Locksmith Shops............... Locksmiths.
Furnace Ducts, Chimney and Other Services to Dwellings and
Gutter Cleaning Services. Buildings (pt).
7819.................................... Services Allied to Motion
Pictures:
Casting Bureaus............... Employment Placement Agencies (pt.).
7922.................................... Theatrical Producers and
Services:
Casting Agencies.............. Employment Placement Agencies (pt.).
7999.................................... Amusement and Recreation
Services, Not Elsewhere
Classified:
Ticket Agencies............... Other Travel Arrangement and
Reservation Services (pt).
[email protected] Management Services:
Construction Management....... Construction Sector.
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means times series break has been created that is greater than 3%
of the 1992 revenues for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere Classified.

Description of Changes to the U.S. System

Nineteen new industries are included in this subsector. Ten of the
new industries were created by breaking apart old U.S. SIC 7389,
Business Services, Not Elsewhere Classified. These are new and growing
industries. New industries were created for:
Temporary Help Services from part of 1987 SIC 7363, Help Supply
Services. This was requested by the industry and is supported by
production process principles.
Employee Leasing Services from part of 1987 SIC 7363, Help Supply
Services. This was requested by the industry and is supported by
production process principles.
Document Preparation Services from part of 1987 SIC 7338,
Secretarial and Court Reporting Services. This split provides for a
better production process based industry.
Telephone Answering Services from part of 1987 SIC 7389, Business
Services, Not Elsewhere Classified. This industry is based on
production process principles.
Telemarketing Bureaus from part of 1987 SIC 7389, Business
Services, Not Elsewhere Classified. This industry is based on
production process principles.
Private Mail Centers from part of 1987 SIC 7389, Business Services,
Not Elsewhere Classified. This industry is based on production process
principles.
Repossession Services from part of 1987 SIC 7322, Adjustment and
Collection Services, and part of 1987 SIC 7389, Business Services, Not
Elsewhere Classified. This industry is based on production process
principles.
Court Reporting and Stenotype Services from part of 1987 SIC 7338,
Secretarial and Court Reporting Services. This split provides for a
better production process industry.
All Other Administrative Support Services from part of 1987 SIC
7389, Business Services, Not Elsewhere Classified. This provides for a
residual industry that includes related activities.
Other Travel Arrangement and Reservation Services from part of 1987
SIC 7389, Business Services, Not Elsewhere Classified; part of 1987 SIC
7999, Amusement and Recreation Services, Not Elsewhere Classified; and
all of 1987 SIC 4729, Arrangement of Passenger Transportation, Not
Elsewhere Classified. This change combines activities having similar
production processes.
Investigation Service from part of 1987 7381, Detective and Armored
Car

[[Page 26631]]

Services. This split provides for a better production process industry.
Security Guard and Patrol Services from part of 1987 SIC 7381,
Detective and Armored Car Services. This split provides for a better
production process industry.
Armored Car Services from part of 1987 SIC 7381, Detective and
Armored Car Services. This split provides for a better production
process industry.
Locksmiths from part of 1987 SIC 7699, Repair Ships and Related
Services, NEC. This split was requested by the industry and is
supported by production process based principles.
Other Services to Buildings and Dwellings from part of 1987 SIC
7389, Business Services, Not Elsewhere Classified, and 1987 SIC 7699,
Repair Shops and Related Services, Not Elsewhere Classified. This
industry is supported by production process principles and improves
international comparability.
Packaging and Labeling Services from part of 1987 SIC 7389,
Business Services, Not Elsewhere Classified. This industry is supported
by production process principles.
Trade Show and Convention Organizers from part of 1987 SIC 7389,
Business Services, Not Elsewhere Classified. This industry is supported
by production process principles.
Convention and Visitors Bureaus from part of 1987 SIC 7389,
Business Services, Not Elsewhere Classified. This was requested by the
industry and is supported by production process principles.
Other Miscellaneous Support Services from part of 1987 SIC 7389,
Business Services, Not Elsewhere Classified. This provides for a
residual industry that includes related activities.
Six industries included in this subsector were revised:
Construction management services were transferred from 1987 SIC
8741, Management Services, to the Construction Sector. This change was
made to achieve international comparability and to combine activities
having similar inputs.
Casting services were transferred from 1987 SIC 7819, Services
Allied to Motion Picture Production, and from 1987 SIC 7922, Theatrical
Producers and Miscellaneous Theatrical Services, to Employment
Placement Agencies to form a better production process industry.
Quick printers that primarily use electrostatic, digital and
nonimpact technologies were transferred from 1987 SIC 2752, Commercial
Printing, Lithographic, based on industry requests. The activity was
placed with Photocopying and Duplicating Services because the
technologies were similar.
Adjustment services were transferred from 1987 SIC 7322, Adjustment
and Collection Services, to Repossession Services to form a better
production process industry.
Exterminating services were transferred from 1987 SIC 7342,
Disinfecting and Exterminating Services, to Exterminating and Pest
Control Services to form a better production process industry.
Disinfecting services, part of 1987 SIC 7342, Disinfecting and
Exterminating Services, was combined with 1987 SIC 7349, Building
Cleaning and Maintenance Services, Not Elsewhere Classified, to form a
production process industry titled Janitorial Services.

Part XIII--Proposed New Industry Structure for Air Transportation,
Rail Transportation, Water Transportation, Truck Transportation,
Transit and Ground Passenger Transportation, Pipeline
Transportation, Scenic and Sightseeing Transportation, and Support
Activities for Transportation

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 23

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following subsectors:

Air Transportation
Rail Transportation
Water Transportation
Truck Transportation
Transit and Ground Passenger Transportation
Pipeline Transportation
Scenic and Sightseeing Transportation
Support Activities for Transportation

The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on November 8 and November 9, 1995 in
Washington, D.C.

------------------------------------------------------------------------
Accepted Signature Date
------------------------------------------------------------------------
Canada.............................. /S/ Jacob Ryten........ 11/9/95
Mexico.............................. /S/ Enrique Ordaz...... 11/9/95
United States....................... /S/ Jack E. Triplett... 11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX Air Transportation
XXX Scheduled Air Transportation
XXXX Scheduled Air Transportation
XXX Nonscheduled Air Transportation
XXXX Nonscheduled Chartered Air Transportation
XXXX Nonscheduled Specialty Air Transportation
XX Rail Transportation
XXX Rail Transportation
XXXX Rail Transportation
XX Water Transportation
XXX Deep Sea, Coastal and Great Lakes Water Transportation
XXXX Deep Sea, Coastal and Great Lakes Water Transportation
XXX Inland Water Transportation
XXXX Inland Water Transportation
XX Truck Transportation
XXX General Freight Trucking
XXXX General Freight Trucking, Local
XXXX General Freight Trucking, Long Distance
XXX Specialized Freight Trucking
XXXX Used Household and Office Goods Moving
XXXX Specialized Freight (except Used Goods) Trucking, Local
XXXX Specialized Freight (except Used Goods) Trucking, Long
Distance
XX Transit and Ground Passenger Transportation
XXX Urban Transit Systems
XXXX Urban Transit Systems
XXX Interurban and Rural Bus Lines
XXXX Interurban and Rural Bus Lines
XXX Taxi and Limousine Service
XXXX Taxi Service
XXXX Limousine Service
XXX School and Employee Bus Industry
XXXX School and Employee Bus Industry
XXX Charter Bus Industry
XXXX Charter Bus Industry
XXX Other Transit and Ground Passenger Transportation
XXXX Other Transit and Ground Passenger Transportation
XX Pipeline Transportation
XXX Pipeline Transportation of Crude Oil
XXXX Pipeline Transportation of Crude Oil
XXX Pipeline Transportation of Natural Gas
XXXX Pipeline Transportation of Natural Gas
XXX Other Pipeline Transportation
XXXX Pipeline Transportation of Refined Petroleum Products
XXXX All Other Pipeline Transport
XX Scenic and Sightseeing Transportation
XXX Scenic and Sightseeing Transportation, Land
XXXX Scenic and Sightseeing Transportation, Land
XXX Scenic and Sightseeing Transportation, Water
XXXX Scenic and Sightseeing Transportation, Water

[[Page 26632]]

XXX Scenic and Sightseeing Transportation, Other
XXXX Scenic and Sightseeing Transportation, Other
XX Support Activities for Transportation
XXX Support Activities for Air Transportation
XXXX Airport Operations
XXXX Other Support Activities for Air Transportation
XXX Support Activities for Rail Transportation
XXXX Support Activities for Rail Transportation
XXX Support Activities for Water Transportation
XXXX Port and Harbor Operations
XXXX Marine Cargo Handling
XXXX Navigational Services to Shipping
XXXX Other Support Activities for Water Transportation
XXX Support Activities for Road Transportation
XXXX Motor Vehicle Towing
XXXX Other Support Activities for Road Transportation
XXX Freight Transportation Arrangement
XXXX Freight Transportation Arrangement
XXX Storage Facilities
XXXX Refrigerated Storage Facilities
XXXX Farm Product Storage Facilities
XXXX Other Storage Facilities
XXX Other Support Activities for Transportation
XXXX Other Support Activities for Transportation
Attachment 2--North American Industry Classification System
Draft Classification for:

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industrial classification for these
industries.
The draft classification provides for the subsectors Air
Transportation, Rail Transportation, Water Transportation, Truck
Transportation, Transit and Ground Passenger Transportation, Pipeline
Transportation, Scenic and Sightseeing Transportation and Support
Activities for Transportation. These subsectors are further subdivided
into twenty-six industry groups and thirty-nine industries.

A General Outline

Establishments in the Transportation sector transport people and
goods, and provide services to these establishments. The structure
distinguishes these two basic types of activities, providing a
subsector for each mode of transportation and a subsector for
establishments providing support activities for transportation. In
addition, there is a subsector for establishments that provide
passenger transportation for scenic and sightseeing purposes.
The modes of transportation are air, rail, water, trucking, transit
and ground passenger, and pipeline. These are further subdivided
according to the way in which businesses in each mode organize their
establishments. The structure also reflects the degree of similarity of
the industrial structures of the three countries.
An alternative structure was considered that would group services
to a mode of transportation in the same subsector as the establishments
carrying out the modal transportation activity. For example, support
activities for air transportation would be an industry group in the
same subsector as scheduled and nonscheduled air transportation. It was
decided not to adopt this approach, because, first, many support
activities for transportation are inherently multi-modal, such as
freight transportation arrangement, or have multi-modal aspects.
Secondly, there are production process similarities among the support
activities. In any case, the structure allows the re-aggregation of the
modal services with the modes of transportation.
In Air Transportation, the classification distinguishes scheduled
from nonscheduled air transportation. Establishments included in
Scheduled Air Transportation must operate flights even if only
partially loaded. Nonscheduled operations also have more freedom to
take off and land during non-peak time slots at busy airports.
Nonscheduled Air Transportation is subdivided into charter and
specialty activities. The former comprises fairly specialized
establishments engaged in transporting freight and people, using
equipment designed for those purposes. Specialty air transportation
establishments use small, general purpose aircraft to provide a variety
of specialized flying services, with none predominating (if the
establishment is specialized in one activity, it is placed elsewhere in
the classification, e.g., a specialist crop dusting establishment is
classified in support activities for agriculture). Consideration was
given to separating passenger from freight in each of the air
transportation industries, but too many establishments provide both
services to allow this distinction in a NAICS establishment
classification; it is preferable to collect such data using the
commodity classification or at the national detail level as the United
States will do.
The classification does not provide for any subdivision of Rail
Transportation. In Mexico, most rail services are currently provided by
a large national rail company that cannot be subdivided into
establishments carrying out various processes. This is likely to change
in the future, but the eventual establishment structure cannot be
predicted now. This prevents the definition of any detail in Rail
Transportation.
In Water Transportation, the underlying industrial structures in
the three countries are quite different. In addition, the existing
concepts used in national classifications are dissimilar. The only
breakdown of water transportation that could be agreed to was inland
(other than Great Lakes) and all other. This is a meaningful production
process distinction in all countries, but inland shipping is an
economically significant activity only in the United States. Each
country can use national detail to define additional industrial detail.
The Truck Transportation subsector is first subdivided into general
freight trucking and specialized freight trucking. Specialized freight
transportation is the transportation of articles that, because of size,
weight, shape or other inherent characteristics require specialized
equipment for transportation. Each of these industry groups is further
subdivided based on distance traveled. Local trucking establishments
primarily carry goods within a single metropolitan area and its
hinterland. Long distance establishments carry goods between
metropolitan areas. This distinction reflects differences in equipment
used, type of load carried, and scheduling, terminal and other
networking services. Long-distance trucking is of particular interest
in the context of North American free trade, since it is this group of
establishments that will be able to compete internationally. The
Specialized Freight Trucking industry group provides an additional
industry for the transportation of used household and office goods,
whether local or long distance, because such establishments do not
specialize on a distance basis, but on the transport of such goods.
The Transit and Ground Passenger Transportation subsector includes
a variety of passenger transportation activities, such as urban transit
systems, taxis and so on. These activities are distinguished based on
such process factors as whether routes are scheduled, run over fixed
routes, and charged on a per-seat or per-vehicle basis.

[[Page 26633]]

The Pipeline Transportation subsector is subdivided along product
lines because pipelines are designed to carry specific products.
Industries have been created to cover the pipeline transportation of
crude oil, natural gas, refined petroleum products, and other products.
The Scenic and Sightseeing Transportation subsector activities have
a production process distinct from passenger transportation carried out
for the purpose of transportation. The process does not emphasize
efficient transportation; in fact, such activities often use obsolete
vehicles such as steam trains, to provide some extra ambience. The
activity is local in nature, usually involving a same-day return to the
point of departure. Some examples are steam train excursions, urban
horse-drawn tourist excursions and hot air balloons. Activities that
are sporting in nature, and involve participation by the customer, such
as white-water rafting, are generally excluded unless they impose a
significant impact on the transportation infrastructure, such as
charter fishing, which is included in the Scenic and Sightseeing
Transportation, Water industry.
The Support Activities for Transportation subsector includes an
industry group for services specific to each mode of transportation,
and for the multi-modal activities of freight transportation
arrangement, storage facilities and other support activities for
transportation. The rental and leasing of transportation equipment,
without operator, is included in a separate sector in NAICS.

Limitations and Constraints of the Classification

In the transportation industries proposed structure, most
activities that were identified in one country exist in the others.
However, often an activity is not carried out by specialized
establishments in all countries. For example, a broad NAICS industry
was created for Rail Transportation, because the various activities
included here are carried out by the same establishments in Mexico.
For those users requiring detailed commodity information, each
country will publish information on the products of these industries.
Efforts are also underway to harmonize the commodity classifications to
allow for greater comparability of these statistics.

Relationship to ISIC

Most of the NAICS 4-digit industries in these subsectors are
contained in ISIC Divisions 60, Land Transport; Transport via
Pipelines; Division 61, Water Transport; Division 62, Air Transport;
Division 63, Supporting and Auxiliary Transport Activities; Activities
of Travel Agencies; and Division 64, Post and Telecommunication
Activities, of the current International Standard Industrial
Classification of all Economic Activities (ISIC, Revision 3) of the
United Nations. Thirty-two of the thirty-nine NAICS 4-digit industries
in these subsectors are contained entirely within these divisions.
There are, however, some differences between the two systems.
NAICS includes the storage of natural gas with the pipeline
transportation of natural gas, because the storage is usually done by
the pipeline establishments, and because a pipeline is inherently a
network in which all the nodes are inter-dependent. ISIC includes the
storage of natural gas in Storage and Warehousing. NAICS includes ship
repair and maintenance, not done in a shipyard, in Other Support
Activities for Water Transportation. An example would be a floating
drydock service in a harbour. ISIC includes these in the Building and
Repairing of Ships Industry in Manufacturing. The five other NAICS
industries that cannot be assigned to an ISIC Division without being
sub-divided are Nonscheduled Specialty Air Transportation; Scenic and
Sightseeing Transportation, Water; Other Support Activities for Air
Transportation; Support Activities for Rail Transportation and
Navigational Services to Shipping.
ISIC includes some activities in Supporting and Auxiliary Transport
Activities that NAICS classifies in other sectors. These include the
operation of parking lots and garages and the operation of travel
agencies and tour operators.

Some Changes to the National Classifications

For Canada, the coverage of the NAICS Transportation sector is
largely the same as the current Canadian classification's Division G,
Transportation and Storage Industries. Air courier activities, in Air
Transport Industries in the Canadian Classification, are in the Postal
Service and Couriers subsector of NAICS. Scenic and Sightseeing
Transportation includes some activities, such as charter fishing, now
found in Services. Other Support Activities for Water Transportation
includes non-factory ship repairing, now classified in the Shipbuilding
and Repair industry in Manufacturing. The Motor Vehicle Towing
Industry, in Transportation in NAICS, is in Retail Trade in the
Canadian classification. Customs Brokers are in Freight Transportation
Arrangement in NAICS but in Business Services in the Canadian
classification. The contract maintenance of roads, bridges and tunnels
is in Other Service Industries Incidental to Transportation in the
Canadian classification, but not in NAICS. Rental and leasing, without
operator, of transportation equipment other than motor vehicles is in
Transportation in the Canadian classification, but is grouped with the
rental and leasing of other equipment in NAICS. The structure of this
NAICS subsector is similar to that of the Canadian classification,
except that services to transportation are arranged modally in the
latter. The amount of detail is similar.
For Mexico, the Transportation subsectors are largely the same as
the current Mexican classification's Transportation subsector, CMAP 71;
which includes Services Related to Land Transport, CMAP 9731; Services
Related to Water Transport, CMAP 9732; Services Related to Air
Transport, CMAP 9733; and Storage and Refrigeration Services, CMAP
979002. Pipeline Transportation of Crude Oil and Natural Gas is
included in CMAP 220000, Extraction of Crude Oil and Natural Gas. Other
Pipeline Transportation is included in Manufacturing (parts of CMAP's
351100, Manufacture of Basic Petrochemicals, and 353000, Petroleum
Refining). Non-factory repair and maintenance of aircraft is included
in Repair and Maintenance in CMAP 961104, Transport Equipment Repair
and Maintenance. Customs Brokers are in Freight Transportation
Arrangement in NAICS but in subsector 9510, Professional, Technical and
Specialized Services, excluding Agricultural Services, in the Mexican
classification. The contract maintenance of roads, bridges and tunnels
is in Services Related to Land Transport in the Mexican classification,
but not in NAICS. Rental and leasing, without operator, of
transportation equipment is in Transportation in the CMAP, but is
grouped with the rental and leasing of other equipment in NAICS. The
structure of NAICS adds pipelines and services to transportation to the
Transportation Sector. These activities are in other sectors in CMAP.
The amount of detail of these NAICS subsectors is similar to that of
the corresponding areas of the Mexican classification.
For the United States, the coverage of the Transportation
subsectors is largely contained in Division E, Transportation

[[Page 26634]]

and Public Utilities of the 1987 SIC. While NAICS industries are much
broader than the 1987 SIC, the U.S. has maintained most of the 1987 SIC
industries in its NAICS 5-digit detail. Air transportation has been
separated into industries based on the type of operation--scheduled,
charter, specialty. This involves adding an industry for Nonscheduled
Specialty Air Transportation that is included in 1987 SIC 4522, Air
Transportation, Nonscheduled. This is being added by the U.S. to
improve the comparability with Canada and Mexico. NAICS also classifies
air ambulance activity in the health sector rather than these
subsectors.
Marina establishments that are included in 1987 SIC 4493, Marinas,
are included in the NAICS Recreation, Amusement, and Gambling
subsector. These changes are agreed to by the U.S. to improve
international comparability with Mexico and Canada.
Truck Transportation is separated first into general freight and
specialized freight. This distinction is principally based on the type
of vehicle with general freight being hauled by standard vans and
containers. General Freight Trucking is then broken down between local
and long-distance. Specialized Freight Trucking is separated into Used
Household and Office Goods Moving; Specialized Freight (except Used
Goods) Trucking, Local; and Specialized Freight (except Used Goods)
Trucking, Long-Distance. The household and office goods movers are
separated because of the substantial network of establishments that has
developed to deal with local and long-distance moving and the
associated storage. In this area, the same establishment provides both
local and long-distance services. Other specialized freight
establishments generally limit their services to either local or long-
distance hauling. This is a change from the existing classifications
(1987 SIC 4212, Local Trucking Without Storage; 4213, Trucking, Except
Local; and 4214, Local Trucking With Storage) that include storage as a
criteria in the classifications. The collection of refuse and garbage
is included in 1987 SIC 4212, Local Trucking Without Storage, but this
activity will be included in the Utilities subsector.
The activities included in 1987 SIC 4215, Courier Services, Except
by Air; 1987 SIC 4311, United States Postal Service; and SIC 4513, Air
Courier Services, will be included in the NAICS subsectors, Postal
Services and Couriers.
The remaining mode-specific subsector, Transit and Ground Passenger
Transportation, includes commuter transportation and highway-based
passenger transportation. In this subsector, the principal splits
identify scheduled transportation as separate from nonscheduled
transportation. The scheduled transportation industry groups are Urban
and Suburban Transit Systems, Interurban and Rural Bus Lines, School
and Employee Bus Industry. The nonscheduled industry groups are Charter
Bus Industry; Taxi and Limousine Service; and Other Transit and Ground
Passenger Transportation. The School and Employee Bus Industry was
changed from 1987 SIC 4151, School Buses, to introduce the employee
transport that is included in 1987 SIC 4119, Local Passenger
Transportation, Not Elsewhere Classified. The Charter Bus industry
combines the local and long-distance industries of the existing
classification system, 1987 SIC 4141, Local Bus Charter Service, and
4142 Bus Charter Service, Except Local, because the production process
and the equipment are similar. The change includes classifying
ambulance services, included in 1987 SIC 4119, Local Passenger
Transportation, Not Elsewhere Classified, as health services in NAICS.
The Scenic and Sightseeing Transportation subsector is separated
into three industries based on the mode--land, water, and other.
The Support Activities for Transportation subsector includes all
services to transportation but is separated by type of mode serviced.
In the 1987 SIC, support activities were included in the same major
group as the type of mode serviced.
The Support Activities for Rail Transportation industry is changed
to include all of the services to the rail industry. This
classification includes rail related activities included in 1987 SIC
4013, Railroad Switching and Terminal Establishments; SIC 4741, Rental
of Railroad Cars; and SIC 4789, Transportation Services, Not Elsewhere
Classified.
Travel agents and tour operators, currently included in 1987 SIC
4724, Travel Agencies, and SIC 4725, Tour Operators, respectively, will
be included in the Management and Support Services subsector in NAICS.

Achievement of Objectives

The classification meets the objectives for the North American
Industry Classification System (NAICS). It includes industries that
group establishments with similar production processes, that is, it
applies the production-oriented economic concept. The hierarchical
structure of the classification also follows the production concept at
each level.
Another objective of the NAICS project is the delineation of
service industries. The transportation industries subsectors provide
services, so the achievement of a common North American classification,
with a reasonable amount of detail, satisfies that objective.
The objective of delineating new and emerging industries is not as
relevant in this sector as in others, as it is relatively mature in its
industrial structure.
The industries have high specialization ratios, and they are, in
most cases, economically significant in all three countries. The detail
(4-digit) level and structure of the classification are balanced in
size. This enhances the classification's suitability for sampling,
data-publishing and other aspects of survey operations. Finally, while
disruptions to time series exist, they have been minimized.
The classification achieves comparability for the three
participating countries. All countries agree on the detailed
definitions of the industries.

Section B--Annex United States National Industry Detail

As explained in the structure presentation of this notice, for a
number of reasons 4-digit industries in the eight NAICS industry
subsectors in Part XIII, Section A--Attachment I, contain less detail
than is currently in the U.S. SIC system, and less detail than is
required to meet important analytical requirements in the U.S. SIC
system. The three country agreement on NAICS envisions that each
country may develop national detailed industries below the NAICS
industry level, so long as the national detail can be aggregated to the
NAICS classification, thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the eight
NAICS subsectors covered in Part XIII of this notice. For cases where
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

[[Page 26635]]

Table 1
----------------------------------------------------------------------------------------------------------------
1987
1997 NAICS and U.S. Status code SIC 1987 SIC description
description code
----------------------------------------------------------------------------------------------------------------
XX................. Air Transportation
XXX................ Scheduled Air
Transportation:
XXXX............... Scheduled Air
Transportation:
XXXXX.............. Scheduled Passenger Air N *4512 Air Transportation, Scheduled
Transportation. (passenger).
XXXXX.............. Scheduled Freight Air N *4512 Air Transportation, Scheduled
Transportation. (freight).
XXX................ Nonscheduled Air
Transportation:
XXXX............... Nonscheduled Chartered Air
Transportation:.
XXXXX.............. Nonscheduled Chartered N *4522 Air Transportation, Nonscheduled
Passenger Air (passenger).
Transportation.
XXXXX.............. Nonscheduled Chartered N *4522 Air Transportation, Nonscheduled
Freight Air (freight).
Transportation.
XXXX............... Nonscheduled Specialty Air N Establishments that use small,
Transportation. general purpose aircraft to
provide a variety of specialized
flying services, with none of
them predominating, such as the
following:
................ *0721 Crop Planting, Cultivating, and
Protecting (crop dusting).
................ *0851 Forestry Services (aerial forest
fighting).
................ *1382 Oil and Gas Field Exploration
Services (aerial geophysical
exploration).
................ *4522 Air Transportation, Nonscheduled
(mixed operations).
................ *7319 Advertising, Not Elsewhere
Classified (aerial advertising).
................ *7335 Commercial Photography (aerial
photography).
................ *7997 Membership Sports and Recreation
Clubs (membership aviation
clubs).
................ *8299 Schools and Educational Services,
Not Elsewhere Classified (flight
school).
................ *8713 Surveying Services (aerial
surveying).
XX................. Rail Transportation:
XXX................ Rail Transportation:
XXXX............... Rail Transportation:
XXXXX.............. Line-Haul Railroads...... E 4011 Railroads, Line-Haul Operating.
XXXXX.............. Short Line Railroads..... N *4013 Railroad Switching and Terminal
Establishments (belt line and
logging railroads).
XX................. Water Transportation:
XXX................ Deep Sea, Coastal and Great
Lakes Water
Transportation:
XXXX............... Deep Sea, Coastal and
Great Lakes Water
Transportation:
XXXXX.............. Deep Sea Freight E 4412 Deep Sea Foreign Transportation
Transportation of Freight.
XXXXX.............. Deep Sea Passenger R *4481 Deep Sea Transportation of
Transportation Passengers, Except by Ferry
(deep sea activities).
XXXXX.............. Coastal and Great Lakes R 4424 Deep Sea Domestic Transportation
Freight Transportation. of Freight.
................ 4432 Freight Transportation on the
Great Lakes--St. Lawrence
Seaway.
................ *4492 Towing and Tugboat Services
(coastal barge operations).
XXXXX.............. Coastal and Great Lakes R *4481 Deep Sea Transportation of
Passenger Transportation. Passengers, Except by Ferry
(coastal activities).
................ *4482 Ferries (coastal and Great
Lakes).
XXX................ Inland Water
Transportation:
XXXX............... Inland Water
Transportation:
XXXXX.............. Inland Water Freight R 4449 Water Transportation of Freight,
Transportation. Not Elsewhere Classified.
................ *4492 Towing and Tugboat Services
(inland barge operations).
XXXXX.............. Inland Water Passenger R *4482 Ferries (inland).
Transportation.
................ *4489 Water Transportation of
Passengers, Not Elsewhere
Classified (water taxi).
XX................. Truck Transportation:
XXX................ General Freight Trucking:
XXXX............... General Freight Trucking, N *4212 Local Trucking without Storage
Local. (general freight).
................ *4214 Local Trucking with Storage
(general freight).
XXXX............... General Freight Trucking,
Long-Distance:
XXXXX.............. General Freight Trucking, N *4213 Trucking, Except Local (general
Long-Distance, Truckload. freight, truckload).
XXXXX.............. General Freight Trucking, N *4213 Trucking, Except Local (general
Long-Distance, Less Than freight, less than truckload).
Truckload.
XXX................ Specialized Freight
Trucking:
XXXX............... Used Household and Office N *4212 Local Trucking Without Storage
Goods Moving. (household goods moving).
................ *4213 Trucking, Except Local (household
goods moving).
................ *4214 Local Trucking With Storage
(household goods moving).
XXXX............... Specialized Freight N *4212 Local Trucking without Storage
(except Used Goods) (specialized freight).
Trucking, Local.

[[Page 26636]]

................ *4214 Local Trucking with Storage
(specialized freight).
XXXX............... Specialized Freight N *4213 Trucking, Except Local
(except Used Goods) (specialized freight).
Trucking, Long-Distance.
XX................. Transit and Ground Passenger
Transportation:
XXX................ Urban Transit Systems:
XXXX............... Urban Transit Systems:
XXXXX.............. Mixed Mode Transit N *4111 Local and Suburban Transit (mixed
Systems. mode).
XXXXX.............. Commuter Rail Systems.... N *4111 Local and Suburban Transit
(commuter rail).
XXXXX.............. Bus and Motor Vehicle N *4111 Local and Suburban Transit (bus
Transit Systems. and motor vehicle).
XXXXX.............. Other Urban Transit N *4111 Local and Suburban Transit (other
Systems. than mixed mode, commuter rail,
and bus and motor vehicle).
XXX................ Interurban and Rural Bus
Lines:
XXXX............... Interurban and Rural Bus E 4131 Intercity and Rural Bus
Lines. Transportation.
XXX................ Taxi and Limousine Service:
XXXX............... Taxi Service.............. E 4121 Taxicabs.
XXXX............... Limousine Service......... N *4119 Local Passenger Transportation,
Not Elsewhere Classified
(limousine rental with driver
and automobile rental with
driver).
XXX................ School and Employee Bus
Industry:
XXXX............... School and Employee Bus R *4151 School Buses.
Industry.
................ 4119 Local Passenger Transportation,
Not Elsewhere Classified
(employee transportation).
XXX................ Charter Bus Industry:
XXXX............... Charter Bus Industry...... R 4141 Local Bus Charter Service.
................ 4142 Bus Charter Services, Except
Local.
XXX................ Other Transit and Ground
Passenger Transportation:
XXXX............... Other Transit and Ground
Passenger Transportation:
XXXXX.............. Special Needs N *4119 Local Passenger Transportation,
Transportation. Not Elsewhere Classified
(special needs transportation).
XXXXX.............. All Other Transit and R *4111 Local and Suburban Transit
Ground Passenger (airport transportation
Transportation. service).
................ *4119 Local Passenger Transportation,
Not Elsewhere Classified (hearse
rental with driver and carpool
and vanpool operation).
XX................. Pipeline Transportation:
XXX................ Pipeline Transportation of
Crude Oil:
XXXX............... Pipeline Transportation of E 4612 Crude Petroleum Pipelines.
Crude Oil.
XXX................ Pipeline Transportation of
Natural Gas:
XXXX............... Pipeline Transportation of E 4922 Natural Gas Transmission.
Natural Gas.
XXX................ Other Pipeline
Transportation:
XXXX............... Pipeline Transportation of E 4613 Refined Petroleum Pipelines.
Refined Petroleum
Products.
XXXX............... All Other Pipeline E 4619 Pipelines, Not Elsewhere
Transport. Classified.
XX................. Scenic and Sightseeing
Transportation:
XXX................ Scenic and Sightseeing
Transportation, Land:
XXXX............... Scenic and Sightseeing N *4119 Local Passenger Transportation,
Transportation, Land. Not Elsewhere Classified (cable
cars and cog railways, except
scenic and amusement and
sightseeing buses).
................ *4789 Transportation Services, Not
Elsewhere Classified (horse-
drawn cabs and carriages).
................ *7999 Amusement and Recreation
Services, Not Elsewhere
Classified (scenic railroads).
XXX................ Scenic and Sightseeing
Transportation, Water:
XXXX............... Scenic and Sightseeing N *4489 Water Transportation of
Transportation, Water. Passengers, Not Elsewhere
Classified (airboats, excursion
boats, and sightseeing boats).
XXX................ Scenic and Sightseeing
Transportation, Other:
XXXX............... Scenic and Sightseeing N *4522 Air Transportation, Non-Scheduled
Transportation, Other. (sightseeing planes).
................ *7999 Amusement and Recreation
Services, Not Elsewhere
Classified (aerial tramways,
scenic and amusement).
XX................. Support Activities for
Transportation:
XXX................ Support Activities for Air
Transportation:
XXXX............... Airport Operations:
XXXXX.............. Air Traffic Control...... N *4581 Airports, Flying Fields, and
Airport Terminal Services
(private air traffic control).
................ *9621 Regulation and Administration of
Transportation Programs
(government air traffic
control).

[[Page 26637]]

XXXXX.............. Air Operations, Except N *4581 Airports, Flying Fields, and
Air Traffic Control. Airport Terminal Services
(airfreight handling at
airports, hangar operations,
airport terminal services,
aircraft storage, airports, and
flying fields).
................ *4959 Sanitary Services, Not Elsewhere
Classified (vacuuming of
runways).
XXXX............... Other Support Activities N *4581 Airports, Flying Fields, and
for Air Transportation. Airport Terminal Services
(aircraft servicing and
repairing).
XXX................ Support Activities for Rail
Transportation:
XXXX............... Support Activities for R *4013 Railroad Switching and Terminal
Rail Transportation. Establishments (all but short
line railroads).
................ *4741 Rental of Railroad Cars (grain
leveling in railroad cars, grain
trimming for railroad equipment,
procooling of fruits and
vegetables in connection with
transportation, and railroad car
cleaning, icing, ventilating,
and heating).
................ *4789 Transportation Services, Not
Elsewhere Classified (car
loading and unloading; cleaning
of railroad ballasts; dining,
parlor, sleeping, and other car
operations; and railroad
maintenance).
XXX................ Support Activities for
Water Transportation:
XXXX............... Port and Harbor Operations N *4491 Marine Cargo Handling (dock and
pier operations).
................ *4499 Water Transportation Services,
Not Elsewhere Classified (seaway
and lighthouse operations).
XXXX............... Marine Cargo Handling..... R *4491 Marine Cargo Handling (all but
dock and pier operations).
XXXX............... Navigational Services to N *4492 Towing and Tugboat Services (all
Shipping. but barge operations).
................ *4499 Water Transportation Services,
Not Elsewhere Classified
(piloting vessels in and out of
harbors and marine salvage).
XXXX............... Other Support Activities R *4499 Water Transportation Services,
for Water Transportation Not Elsewhere Classified (all
but seaway and lighthouse
operations, piloting vessels in
and out of harbors, and marine
salvage).
................ *4785 Fixed Facilities and Inspection
and Weighing Services for Motor
Vehicle Transportation (marine
cargo checkers).
................ *7699 Repair Shops and Related
Services, Not Elsewhere
Classified (ship scaling).
XXX................ Support Activities for Road
Transportation:
XXXX............... Motor Vehicle Towing...... N *7549 Automotive Services, Except
Repair and Carwashes (towing).
XXXX............... Other Support Activities R 4173 Terminal and Service Facilities
for Road Transportation. for Motor Vehicle Passenger
Transportation.
................ 4231 Terminal and Joint Terminal
Maintenance Facilities for Motor
Freight Transportation.
................ *4785 Fixed Facilities and Inspection
and Weighing Services for Motor
Vehicle Transportation (all but
marine cargo checkers).
XXX................ Freight Transportation
Arrangement:
XXXX............... Freight Transportation E 4731 Arrangement of Transportation of
Arrangement. Freight and Cargo.
XXX................ Storage Facilities:
XXXX............... Refrigerated Storage R 4222 Refrigerated Warehousing and
Facilities. Storage.
................ *4226 Special Warehousing and Storage,
Not Elsewhere Classified (fur
storage).
XXXX............... Farm Product Storage E 4221 Farm Product Warehousing and
Facilities. Storage.
XXXX............... Other Storage Facilities:
XXXXX.............. General Storage R *4225 General Warehousing and Storage
Facilities. (all but self-storage
miniwarehouse warehousing).
XXXXX.............. All Other Storage R 4226 Special Warehousing and Storage,
Facilities. Not Elsewhere Classified (all
but fur storage).
XXX................ Other Support Activities
for Transportation:
XXXX............... Other Support Activities
for Transportation:
XXXXX.............. Packing and Crating...... E 4783 Packing and Crating.
XXXXX.............. All Other Support R *4729 Arrangement of Passenger
Activities for Transportation, Not Elsewhere
Transportation. Classified (arrangement of
carpools and vanpools).
................ *4789 Transportation Services, Not
Elsewhere Classified (pipeline
terminals and stockyards for
transportation).
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and
* means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

[[Page 26638]]

Crop dusting when combined Nonscheduled Speciality Air
with a variety of aircraft- Transportation.
based services.
Other......................... (Included in the Crop Production
subsector).
0851.................................... Forestry Services:
Aerial forest fighting when Nonscheduled Speciality Air
combined with a variety of Transportation.
aircraft-based services.
Other......................... (Included in the Forestry
subsector).
1382.................................... Oil and Gas Field Exploration
Services:
Aerial geophysical exploration Nonscheduled Speciality Air
combined with a variety of Transportation.
aircraft-based services.
Other......................... (Included in the Mining subsector).
4011.................................... Railroads, Line-haul Operating.. Line-Haul Railroads.
[email protected] Railroad Switching and Terminal
Establishments:
Beltline and logging railroads Short Line Railroads.
Other......................... Support Activities for Rail
Transportation (pt.).
[email protected] Local and Suburban Transit:
Mixed mode transit systems.... Mixed Mode Transit Systems.
Commuter rail systems......... Commuter Rail Systems.
Bus and motor vehicle transit Bus and Motor Vehicle Transit
systems. Systems.
Other urban transit systems... Other Urban Transit Systems.
Airport limousine All Other Transit and Ground
transportation. Passenger Transportation (pt).
[email protected] Local Passenger Transportation,
Not Elsewhere Classified:
Ambulances.................... Ambulance Service (Included in
Health and Social Assistance
sector).
Employee transportation....... School and Employee Bus Industry
(pt.).
Sightseeing buses and cable Scenic and Sightseeing
and cog railways, except Transportation, Land (pt.).
scenic.
Special needs transportation.. Special Needs Transportation.
Hearse rental with driver and All Other Transit and Ground
carpool and vanpool Passenger Transportation (pt).
operations.
Automobile rental with driver Limousine Service.
and limousine rental with
driver.
4121.................................... Taxicabs:
Taxicabs...................... Taxi Service.
4131.................................... Intercity and Rural Bus Interurban and Rural Bus Lines.
Transportation.
[email protected] Local Charter Bus Service:
Local charter bus service..... Charter Bus Industry (pt.).
[email protected] Bus Charter Service, Except
Local:
Long-distance charter bus Charter Bus Industry (pt.).
service.
4151.................................... School Buses.................... School and Employee Bus Industry
(pt.).
[email protected] Terminal and Service Facilities
for Motor Vehicle Passenger
Transportation:
Independent bus terminals..... Other Support Activities for Road
Transportation (pt.).
[email protected] Local Trucking Without Storage:
Garbage collection............ Garbage Collection (Included in
subsector related to sanitary
services).
Local general freight trucking General Freight Trucking, Local
without storage. (pt.).
Household goods moving without Used Household and Office Goods
storage. Moving (pt.).
Local specialized freight Specialized Freight (except Used
trucking without storage. Goods) Trucking, Local (pt.).
[email protected] Trucking, Except Local:
Long-distance truckload General Freight Trucking, Long-
general freight trucking. Distance, Truckload.
Long-distance less than General Freight Trucking, Long-
truckload general freight Distance, Less Than Truckload.
trucking.
Long-distance household goods Used Household and Office Goods
moving. Moving (pt.).
Long-distance specialized Specialized Freight (except Used
freight trucking. Goods) Trucking, Long-Distance.
[email protected] Local Trucking with Storage:
Local general freight General Freight Trucking, Local
trucking with storage. (pt.).
Local household goods moving. Used Household and Office Goods
Moving (pt.).
Local specialized freight Specialized Freight (except Used
trucking with storage. Goods) Trucking, Local.
[email protected] Couriers Services Except by
Air:
Courier services Except by Courier Services (Included in
Air. Couriers subsector).
4221.................................... Farm Product Warehousing and Farm Product Storage Facilities.
Storage.
4222.................................... Refrigerated Warehousing and Refrigerated Storage Facilities
Storage. (pt.).
4225.................................... General Warehousing and
Storage:
General Warehousing and General Storage Facilities (pt).
Storage.
Self-Storage Miniwarehouse Operators of Miniwarehouses
Warehousing. (included in Real Estate
subsector).
4226.................................... Special Warehousing and
Storage, Not Elsewhere
Classified:

[[Page 26639]]

Fur storage.................. Refrigerated Storage Facilities
(pt.).
Other........................ All Other Storage Facilities.
[email protected] Terminal and Joint Terminal
Maintenance Facilities for
Motor Freight Transportation:
Independent truck terminals.. Other Support Activities for Road
Transportation (pt.).
[email protected] United States Postal Service:
United States Postal Service. Postal Services (Included in Postal
Services subsector).
4412.................................... Deep Sea Foreign Transportation Deep Sea Freight Transportation.
of Freight.
[email protected] Deep Sea Domestic
Transportation of Freight:
Coastal freight operations... Coastal and Great Lakes Freight
Transportation (pt.).
[email protected] Freight Transportation on the
Great Lakes-St. Lawrence
Seaway:
Great Lakes freight Coastal and Great Lakes Freight
operations. Transportation (pt.).
4449.................................... Water Transportation of Freight, Inland Water Freight Transportation
Not Elsewhere Classified. (pt.).
4481.................................... Deep Sea Transportation of
Passengers, Except by Ferry:
Deep sea passenger Deep Sea Passenger Transportation.
transportation.
Coastal and Great Lakes Coastal and Great Lakes Passenger
passenger transportation. Transportation (pt.).
[email protected] Ferries:
Coastal and Great Lakes Coastal and Great Lakes Passenger
ferries. Transportation (pt.).
Inland water ferries.......... Inland Water Passenger
Transportation (pt.)
4489.................................... Water Transportation of
Passengers, Not Elsewhere
Classified:
Water taxis................... Inland Water Passenger
Transportation (pt.).
Airboats, excursion boats, and Scenic and Sightseeing
sightseeing boats. Transportation, Water.
4491................................... Marine Cargo Handling:
Dock and pier operations...... Port and Harbor Operations (pt.)
Other......................... Marine Cargo Handling.
[email protected] Towing and Tugboat Services:
Coastal and Great Lakes barge Coastal and Great Lakes Freight
operations. Transportation (pt.).
Inland water barge operations. Inland Water Freight Transportation
(pt.).
Other......................... Navigational Services to Shipping
(pt.).
[email protected] Marinas: ....................................
Marinas....................... Marinas (Included in Recreation,
Amusement, and Gambling subsector).
[email protected] Water Transportation Services,
Not Elsewhere Classified:
Boat rental................... Boat rental (Included in Rental and
Leasing subsector)
Seaway and lighthouse Port and Harbor Operations (pt.).
operations.
Marine salvage and piloting Navigational Services to Shipping
vessels in and out of harbors. (pt.).
Other......................... Other Supporting Activities for
Water Transportation (pt.).
4512.................................... Air Transportation, Scheduled:
Scheduled passenger air Scheduled freight air
transportation. transportation.
Scheduled Passenger Air Scheduled Freight Air
Transportation. Transportation.
[email protected] Air Courier Services:
Air courier operations........ Couriers and Messengers (Included in
Couriers subsector).
[email protected] Air Transportation, ....................................
Nonscheduled:
Air ambulance................. Ambulance Services (Included in
Health and Social Assistance
sector).
Nonscheduled charter freight Nonscheduled Chartered Freight Air
air transportation. Transportation.
Nonscheduled charter passenger Nonscheduled Chartered Passenger Air
air transportation. Transportation.
Nonscheduled specialty air Nonscheduled specialty air
transportation. transportation.
Sightseeing airplanes......... Scenic and Sightseeing
Transportation, Other (pt.).
4581.................................... Airports, Flying Fields, and ....................................
Airport Terminal Services:
Air traffic control........... Air Traffic Control.
Airfreight handling at Airport Operations, Except Air
airports, hangar operations, Traffic Control.
airport terminal services,
aircraft storage, airports,
and flying fields.
Other......................... Other Support Activities for Air
Transportation.
4612.................................... Crude Petroleum Pipelines....... Pipeline Transportation of Crude
Oil.
4613.................................... Refined Petroleum Pipelines..... Pipeline Transportation of Refined
Petroleum Products.
4619.................................... Pipelines, Not Elsewhere All Other Pipeline Transport.
Classified.
[email protected] Travel Agents: ....................................
Travel agents................. Travel Agencies (Included in
Management and Support Services
subsector).
[email protected] Tour Operators:

[[Page 26640]]

Tour operators................ Tour Operators (Included in
Management and Support Services
subsector)
[email protected] Arrangement of Passenger ....................................
Transportation, Not Elsewhere
Classified:
Arrangement of carpools and All Other Support Activities for
vanpools. Transportation (pt.).
Other......................... (Included in Management and Support
Services subsector).
4731.................................... Arrangement of Transportation of ....................................
Freight and Cargo:
Freight rate auditors and Other Management Consulting Services
tariff consultants. (Included in Professional,
Scientific, and Technical Services
subsector).
Other......................... Freight Transportation Arrangement.
[email protected] Rental of Railroad Cars:........ ....................................
Railcar rental................ Railroad Car Rental (Included in
Rental and Leasing subsector).
Other......................... Support Activities for Rail
Transportation (pt.).
4783.................................... Packing and Crating............. Packing and Crating.
4785.................................... Fixed Facilities and Inspection ....................................
and Weighing Services for Motor
Vehicle Transportation:
Marine cargo checkers......... Other Support Activities for Water
Transportation (pt.).
Other......................... Other Support Activities for Road
Transportation (pt.).
4789.................................... Transportation Services, Not ....................................
Elsewhere Classified
Pipeline terminals and All Other Support Activities for
stockyards for transportation. Transportation (pt.)
Horse-drawn cabs and carriages Scenic and Sightseeing
Transportation, Land (pt.).
Other......................... Support Activities for Rail
Transportation (pt.).
4922.................................... Natural Gas Transmission........ Pipeline Transportation of Natural
Gas.
4959.................................... Sanitary Services, Not Elsewhere
Classified:
Vacuuming of airport runways.. Airport Operations, Except Air
Traffic Control.
Other......................... (Included in subsector related to
sanitary services).
7319.................................... Advertising, Not Elsewhere
Classified:
Aerial advertising when Nonscheduled Specialty Air
combined with a variety of Transportation.
aircraft-based services.
Other......................... (Included in the Professional,
Scientific and Technical Services
subsector).
7335.................................... Commercial Photography:
Aerial photography when Nonscheduled Specialty Air
combined with a variety of Transportation.
aircraft-based services.
Except when combined with a Commercial Photography (Included in
variety of aircraft-based the Professional, Scientific and
services. Technical Services subsector).
7549.................................... Automotive Services, Except
Repair and Carwashes:
Motor Vehicle Towing.......... Motor Vehicle Towing.
Except Motor Vehicle Towing... (Included in the Repair and
Maintenance subsector).
7699.................................... Repair Shops and Related
Services, Not Elsewhere
Classified:
Ship scaling.................. Other Supporting Activities for
Water Transportation.
Other......................... (Included in Repair and Maintenance
subsector).
7997.................................... Membership Sports and Recreation
Clubs:
Membership aviation clubs when Nonscheduled Specialty Air
combined with a variety of Transportation.
aircraft-based services
Other......................... (Included in the Recreation,
Amusement, and Gambling subsector).
7999.................................... Amusement and Recreation
Services, Not Elsewhere
Classified:
Aerial tramways, scenic and Scenic and Sightseeing
amusement. Transportation, Other.
Scenic railroads.............. Scenic and Sightseeing
Transportation, Land.
Other......................... (Included in the Recreation,
Amusement, and Gambling subsector).
8299.................................... Schools and Educational
Services, Not Elsewhere
Classified:
Flight schools when combined Nonscheduled Specialty Air
with a variety of aircraft- Transportation.
based services.
Other......................... (Included in the Education Services
subsector).
8713.................................... Surveying Services: Aerial Nonscheduled Specialty Air
surveying when combined with a Transportation.
variety of aircraft-based
services
Other......................... (Included in the Professional,
Scientific and Technical Services
subsector).
9621.................................... Regulation and Administration of
Transportation Programs:
Government air traffic control Air Traffic Control.

[[Page 26641]]

Other......................... (Included in Public Administration
subsector).
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means time series break has been created that is greater than 3%
of the 1992 revenues for the 1987 industry. The abbreviation NEC is used for Not Elsewhere Classified.

Description of Changes to the U.S. System

1. Air Transportation--There are five new classifications added to
the 1997 industry structure for this subsector. New industries are the
following:
Scheduled Passenger Air Transportation from part of 1987 SIC 4512,
Air Transportation, Scheduled.
Scheduled Freight Air Transportation from part of 1987 SIC 4512,
Air Transportation, Scheduled.
Nonscheduled Chartered Passenger Air Transportation from part of
1987 SIC 4522, Air Transportation, Nonscheduled.
Nonscheduled Chartered Freight Air Transportation from part of 1987
SIC 4522, Air Transportation, Nonscheduled.
Nonscheduled Specialty Air Transportation establishments that use
small, general purpose aircraft to provide a variety of specialized
flying services, with none of them predominating, from parts of 1987
SIC 0721, Crop Planting, Cultivating, and Protecting; 1987 SIC 0851,
Forestry Services; 1987 SIC 1382, Oil and Gas Field Exploration
Services; 1987 SIC 4522, Air Transportation, Nonscheduled; 1987 SIC
7319, Advertising, Not Elsewhere Classified; 1987 SIC 7335, Commercial
Photography; 1987 SIC 7997, Membership Sports and Recreation Clubs;
1987 SIC 8299, Schools and Educational Services, Not Elsewhere
Classified; and 1987 SIC 8713, Surveying Services. The changes to air
transportation to separate passenger transportation from freight
transportation were requested by the industry and are supported by
production-based principles.
2. One new industry has been added for Rail Transportation. Short
Line Railroads was created from part of 1987 SIC 4013, Railroad
Switching and Terminal Establishments. This change was made because of
the differences in the production process between short line and line-
haul railroads.
3. Water Transportation--The Water Transportation subsector now
includes six industries, five of which have been revised from 1987.
Deep Sea Passenger Transportation now excludes coastal activities.
Coastal and Great Lakes Freight Transportation includes 1987 SIC
4424, Deep Sea Domestic Transportation of Freight; 1987 SIC 4432,
Freight Transportation on the Great Lakes-St. Lawrence Seaway; and part
of 1987 SIC 4492, Towing and Tugboat Services.
Coastal and Great Lakes Passenger Transportation now includes part
of 1987 SIC 4481, Deep Sea Transportation of Passenger, Except by
Ferry, and part of 1987 SIC 4482, Ferries.
Inland water transportation has been split between freight and
passenger transportation. These changes were made to achieve
international comparability with Canada and Mexico and to also
recognize the split between freight and passenger transportation.
3. Truck Transportation--The trucking industry has been redefined
in terms of the type of equipment used. This regroups 1987 SIC 4212,
Local Trucking Without Storage; 1987 SIC 4213, Trucking, Except Local;
and 1987 SIC 4214, Local Trucking with Storage. The new classifications
are: General Freight Trucking Local; General Freight Trucking, Long-
Distance, Truckload; General Freight Trucking, Long-Distance, Less than
Truckload; Used Household and Office Goods Moving; Specialized Freight
(except Used Goods) Trucking, Local; and Specialized Freight (except
Used Goods) Trucking, Long-Distance. This change was requested by the
industry and is supported on production-based principles.
4. Transit and Ground Passenger Transportation--There were four
industries created from 1987 SIC 4111, Local and Suburban Transit. They
are: Mixed Mode Transit Systems, Commuter Rail Systems, Bus and Motor
Vehicle Transit Systems, and Other Urban Transit Systems. These
classifications were identified to separate the industry based on the
mode of transportation.
Limousine Service was created from part of 1987 SIC 4119, Local
Passenger Transportation, Not Elsewhere Classified. This industry was
created from an NEC industry to recognize its production process and to
group it in the same industry group as taxis, an industry that provides
similar services, with a similar production process.
Special Needs Transportation was created from part of 1987 SIC
4119, Local Passenger Transportation, Not Elsewhere Classified. This
industry identifies a separate process involving the use of specially
equipped vehicles and special services not found in other passenger
transportation.
A residual industry, All Other Transit and Ground Passenger
Transportation, was created from part of 1987 SIC 4111, Local and
Suburban Transit; and part of 1987 SIC 4119, Local Passenger
Transportation, Not Elsewhere Classified.
5. Pipeline Transportation--There were no changes to these
industries for NAICS.
6. Scenic and Sightseeing Transportation--Three new industries were
created for this subsector as follows:
Scenic and Sightseeing Transportation, Land from part of 1987 SIC
4119, Local Passenger Transportation, Not Elsewhere Classified; part of
1987 SIC 4789, Transportation Services Not Elsewhere Classified; and
part of 1987 SIC 7999, Amusement and Recreation Services, Not Elsewhere
Classified.
Scenic and Sightseeing Transportation, Water from 1987 SIC 4489,
Water Transportation of Passengers, Not Elsewhere Classified.
Scenic and Sightseeing Transportation, Other from part of 1987 SIC
4522, Air Transportation, non-scheduled, and part of 1987 SIC 7999,
Amusement and Recreation Services, Not Elsewhere Classified. These
industries were agreed to by the U.S. to improve international
comparability with Mexico and Canada, and because scenic and
sightseeing involves different activities from other forms of
transportation, as noted in Section A.
7. Support Activities for Transportation--Three new industries have
been created for Support Activities for Air Transportation. Activities
included in 1987 SIC 4581, Airports, Flying Fields and Airport Terminal
Services, are now included in three new industries: Air Traffic Control
also including government operations included in 1987 SIC 9621,
Regulation and Administration of Transportation Programs; Air
Operations, Except Air Traffic Control; and Other Support Activities
for Air Transportation. Air Operations, Except Air Traffic Control

[[Page 26642]]

also includes runway vacuuming included in 1987 SIC 4959, Sanitary
Services, Not Elsewhere Classified. These changes improve comparability
with Mexico and Canada and are supported based on production
principles.
Two new industries are included in Support Activities for Water
Transportation. These are Port and Harbor Operations and Navigational
Services to Shipping. Port and Harbor Operations is a combination of
dock and pier activities formerly included in 1987 SIC 4491, Marine
Cargo Handling, and part of 1987 SIC 4499, Water Transportation
Services, Not Elsewhere Classified (lighthouse and seaway operations).
Navigational Services to Shipping is a combination of the activities
from 1987 SIC 4492, Towing and Tugboat Services (all but the barge
activities), and 1987 SIC 4499, Water Transportation Services, Not
Elsewhere Classified (piloting vessels in and out of harbors and marine
salvage). These changes were made to improve international
comparability.
In Support Activities for Road Transportation, Motor Vehicle Towing
has been created from part of 1987 SIC 7549, Automotive Services,
Except Repair and Carwashes. This activity was moved from automotive
services because the processes are similar to transportation
activities. Other changes include the combination of activities from
1987 SIC 4173, Terminal and Service Facilities for Motor Vehicle
Passenger Transportation; other road services from 1987 SIC 4231,
Terminal and Joint Terminal Maintenance Facilities for Motor Freight
Transportation; and most of the activities included in 1987 SIC 4785,
Fixed Facilities and Inspection and Weighing Services for Motor Vehicle
Transportation (all but marine cargo checkers). The new industry, Other
Support Activities for Road Transportation, was created because the
production process of these activities is similar regardless of the
input that produces these services.
The number of industries in this sector has increased from forty-
five in 1987 to fifty-four in 1997. For time series linkage twelve of
the forty-five 1987 industries are directly comparable. Another twelve
are comparable within three percent of the 1997 industries. Yet another
four 1987 industries have changes that resulted in twelve 1997 NAICS
industries that can be summed for comparable classifications.

Part XIV--Proposed New Industry Structure for Retail Trade and
Wholesale Trade

Section A--NAICS Structure

(NAICS)
Agreement Number 25

This Document represents the proposed agreement on the boundaries
of the North American Industry Classification System (NAICS) for the
following sectors:

Retail Trade
Wholesale Trade

A brief description of the boundaries for Retail Trade and
Wholesale Trade is attached. Each country agrees to release a copy of
the proposed NAICS boundaries to interested data users. Comments
received will be shared among the countries and additional discussions
will be held before a final decision on the boundaries is made. The
structure and detailed definitions of the industries within the
boundaries will be determined by each country's national requirements.
The NAICS boundaries for these sectors were presented and provisionally
accepted at the NAICS Committee meeting held on November 8 and November
9, 1995 in Washington D.C.

------------------------------------------------------------------------
Accepted Signature Date
------------------------------------------------------------------------
Canada.............................. /S/ Jacob Ryten........ 11/9/95
Mexico.............................. /S/ Enrique Ordaz...... 11/9/95
United States....................... /S/ Jack E. Triplett... 11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

Attachment 2--North American Industry Classification System

Draft Classification For:

Retail Trade
Wholesale Trade

Summary

In most sectors of the North American Industry Classification
System (NAICS), the statistical agencies of Canada, Mexico, and the
United States have agreed to a detailed structure that includes
subsectors, industry groups, and detailed industry definitions.
However, in the cases of the Retail Trade sector and the Wholesale
Trade sector, the three statistical agencies have agreed that only the
boundaries of the sectors will be made comparable internationally at
the present time. The structure and detailed definitions of the
industries within the boundaries will be determined by national
requirements.
For the Retail Trade and Wholesale Trade sectors, determining
internationally comparable boundaries was vital. Internationally
comparable boundaries make it possible to compare the relative size of
the Retail Trade and Wholesale Trade sectors in the economies of the
three countries. Moreover, achieving international comparability on the
boundaries of the Retail Trade and Wholesale Trade sectors was
necessary to obtain internationally comparable data for the other
sectors of NAICS. For example, previously the three countries had
different and inconsistent boundaries between retail trade and
manufacturing for some activities, between retail trade and services
for others, and between retail trade and wholesale trade for still
others.
Because resources and time for constructing NAICS were limited, the
three countries decided to place priority on determining
internationally comparable boundaries for the Retail Trade and
Wholesale Trade sectors. This agreement does not preclude further work
toward internationally comparable retail trade and wholesale trade
industries in the future.

General Outline

The NAICS definitions of Retail Trade and Wholesale Trade differ
from the previous definitions in all three countries. The new
definitions of Retail Trade and Wholesale Trade follow. They result
from a new criterion to separate these sectors.
Retail establishments are primarily engaged in selling merchandise,
generally without transformation, for end use. These establishments
attract customers using methods such as advertising, point-of-sale
location, and display of merchandise for ease of selection.
Two type of retailers are distinguished:
(1) Store retailers attempt to attract a high volume of walk-in
customers through site location and/or advertising. In general, retail
stores have extensive merchandise displays to promote product
accessibility and sales. Other store retailers include catalog sales
showrooms, gasoline service stations, and mobile home dealers.
(2) Non-store retailers--those selling by other means--include:

Mail order houses
Vending machine operators
Telemarketing sales
Home delivery (e.g., milk, newspapers)
Door-to-door sales
Party plans
Electronic shopping
Sales through temporary stands or stalls

Sales of capital or durable nonconsumer goods used in the

[[Page 26643]]

production of goods and services, such as farm machinery, medium and
heavy duty trucks, and industrial machinery, as well as the sale of raw
materials used in production, are included in wholesale trade. These
goods are virtually never sold through the methods outlined above.
Wholesale establishments are primarily engaged in selling or
arranging the purchase or sale of a) goods for resale, b) capital or
durable nonconsumer goods, and c) raw and intermediate materials and
supplies used in production. Wholesale establishments have most or all
of the following characteristics:
Wholesalers normally operate from a warehouse or office. These
warehouses and offices are characterized by having little or no display
of merchandise. In addition, neither the design nor the location of the
premises is intended to solicit walk-in traffic. Wholesalers do not
normally use advertising directed to the general public. Customers are
generally reached initially via telephone, in-person marketing, or by
specialized advertising that may include internet and other electronic
means.
While sales are normally in large volumes, durable nonconsumer
goods may be sold in single units.
Sales of capital or durable nonconsumer goods used in the
production of goods and services, such as farm machinery, medium and
heavy duty trucks, and industrial machinery, as well as the sale of raw
materials used in production, are always included in wholesale trade.
Two types of wholesalers may be distinguished:
(1) Establishments selling goods, generally without transformation,
on their own account are known as ``merchant wholesalers'' or
``distributors.'' Sales of products may include integral services such
as sorting, packaging and labeling, and marketing. Merchant wholesalers
typically maintain their own warehouses. Merchant wholesalers also
include drop shippers and import/export merchants.
(2) Establishments arranging for the purchase or sale of goods
owned by others or purchasing on a commission basis are known as
``agents and brokers.'' Agents and brokers operate from offices and
rarely own and handle goods. Commission merchants, auction agents,
import/export agents, and manufacturers' representatives are included
in agents and brokers.
The redefinition of the criterion to separate retail trade and
wholesale trade is a change for all three countries. In the past, the
criterion was based on the class of customer (though specific
exceptions were listed). That is, if the business was primarily engaged
in selling merchandise for personal or household consumption, the
establishment was classified in Retail Trade. If the establishment was
primarily selling to business or farm customers for business use, the
establishment was included in Wholesale Trade. This led to anomalies,
for example, the classification into wholesale trade of businesses
perceived to be retail trade, the classification of similar businesses
to different sectors, and contrary interpretations of the rule by the
various statistical agencies.
The new wholesale-retail definition emphasizes what the
establishment does, rather than to whom it sells. A store retailer, for
example, has the attributes of a store: A selling place open to the
public, merchandise on display or available through sales clerks,
facilities for making cash or credit card transactions, and services
provided to retail customers. The store provides a place to purchase
commodities and is a location where customers may go to obtain
information about commodities that are available in retail markets. The
new rule is an implementation of the production-oriented criterion for
classification adopted for NAICS. But it also agrees with common sense
and the normal usage of the word ``retailing'' among the public and by
business within the sector itself. The old class of customer rule did
not correspond to the usual meaning of the word ``retailing.''

Relationship to ISIC

The International Standard Industrial Classification of all
Economic Activities (ISIC, Revision 3) does not include separate
aggregates for Retail Trade and Wholesale Trade. Rather, it combines
these activities into three ISIC divisions as follows: Division 50,
Sale, Maintenance and Repair of Motor Vehicles and Motorcycles; Retail
Sale of Automotive Fuel; Division 51, Wholesale Trade and Commission
Trade, Except of Motor Vehicles and Motorcycles; and Division 52,
Retail Trade, Except of Motor Vehicles and Motorcycles; Repair of
Personal and Household Goods. The Retail Trade and Wholesale Trade
sectors proposed for NAICS are equivalent to those ISIC divisions minus
class 5020, Maintenance and Repair of Motor Vehicles; class 5260,
Repair of Personal and Household Goods; and part of class 5040, Sale,
Maintenance and Repair of Motorcycles and Related Parts and
Accessories.

Some Changes to the National Classifications

For Canada, the agreement on new definitions for retail trade and
wholesale trade results in the transfer of a number of establishments
from wholesale trade to retail trade, manufacturing, and services, and
from retail trade to manufacturing and services. The most important of
these changes are outlined below.
Although the main criterion to distinguish Retail Trade
establishments from Wholesale Trade in the 1980 Standard Industrial
Classification (SIC) is the class of customer, particular types of
trade establishments are assigned to wholesale trade irrespective of
their main class of customer. The most important of these are building
materials dealers, computer and software stores, office supplies stores
and home fuel dealers. NAICS assigns many of these establishments in
Retail Trade, that is, those establishments that meet the conditions
specified in the Retail Trade definition. Establishments that supply
these products to retailers will remain in Wholesale Trade.
The Wholesale Trade division currently includes some activities
that are moved to the NAICS manufacturing sector. These activities are
tire retreading, the rebuilding on a factory basis of some automotive
parts and the converting of fabric (piece goods converters). Piece
goods converters are establishments primarily engaged in purchasing
fabric in the grey and arranging to have a separate establishment dye
the fabric on a contract basis. As well, establishments primarily
engaged in the repair of various types of machinery and equipment are
transferred from Wholesale Trade to a newly created Repair and
Maintenance subsector. These changes affect a relatively small number
of establishments currently found in sixteen wholesale industries.
A number of activities currently in Retail Trade in the Canadian
classification are assigned to other sectors in NAICS, including
establishments engaged in the transformation and sale of products on
the premises. Therefore, retail bakeries and candy shops that produce
most of their products on the premises and tailor shops that produce
custom garments are being moved to manufacturing. Also, the repair and
maintenance of automobiles, home appliances, consumer electronics,
furniture, recreational vehicles, bicycles, musical instruments and
watches and jewelry is transferred from Retail Trade to the newly
created Repair

[[Page 26644]]

and Maintenance subsector. This change implies the relocation of entire
industries, CSIC 6213, Furniture Refinishing and Repair Shops; CSIC
6223, Appliance, Television, Radio and Stereo Repair Shops; CSIC 635,
Motor Vehicle Repair Shops; most of CSIC 639, Other Motor Vehicle
Services; CSIC 6562, Watch and Jewelry Repair Shops; and parts of CSIC
6323, Motorcycle and Snowmobile Dealers; CSIC 6542, Bicycle Shops; and
CSIC, 6551, Musical Instrument Stores.
For Mexico, the change from class of customer to production
characteristics changes a number of industries. These include such
things as office supplies, farm supplies, building materials, paint,
and hardware that existed only in wholesale in CMAP. In NAICS these
activities, are in both Wholesale Trade and Retail Trade . The biggest
change in this area is including the sales of computers and office
furniture in Retail Trade. CMAP does not include classifications in
Retail Trade for these activities.
There are a number of activities that will be included in Retail
Trade and Wholesale Trade for NAICS that are included in other areas of
CMAP. These include vending operations and establishments selling on a
commission basis. The vending machine operators are included in CMAP
931011, Restaurants and Eateries. Commissionaires are included in CMAP
97500, Business Intermediation.
The sales of lottery tickets that is included in CMAP 623089,
Retail Trade in Lottery Tickets, Etc., will be excluded from Retail
Trade in NAICS.
For the United States, restaurants and bars, formerly included in
retail trade in the U.S., have been moved and combined with hotels and
other accommodations (See Agreement No. 3). This affects all of 1987
SIC Major Group 58 and part of the retail food industry, including such
establishments as doughnut shops, cookie shops, pretzel shops, etc.
that are primarily engaged in the preparation of food and drink for
immediate consumption. These establishments were previously classified
in 1987 SIC 5461, Retail Bakeries, and 1987 SIC 5499, Miscellaneous
Food Stores. It also includes mobile food services that were previously
included in 1987 SIC 5963, Direct Selling Establishments.
The handling of the combination of sales and service is also a
change. In the past, establishments that were primarily engaged in
service activities were included in Services. This resulted in many
businesses that engaged in both sales and service changing
classification from year to year based on the condition of the market
for the sales of the product. This was particularly evident in the area
of bicycle sales and service. In NAICS, establishments that are selling
and providing services for the products sold will be included in retail
trade even if more of their revenue is in service receipts. An
establishment that only has incidental sales or that provides services
for products they do not sell such as automobile repair by an
independent repair shop are still classified in NAICS as a service
establishment.
Another example of change is the print and frame shop.
Establishments that frame pictures usually also sell prints and framing
materials to their customers. Such an establishment was classified
either in Services or Retail based on the share of revenue derived from
the framing activity versus the sales activity. NAICS specifies that
these establishments are to be classified in Retail Trade.
There is also a change in the classification of some activities
involving making and selling goods to the public at the same location.
Establishments engaged in producing candy, baked goods, custom
clothing, furniture, cabinets, and crafts are included in the
Manufacturing sector of NAICS. These activities are included in
Division G, Retail Trade, of the 1987 SIC.
The change from class of customer to production characteristics
will affect establishments in industries such as computer stores,
office furniture dealers, and office suppliers which will move from
wholesale to retail.
Another change to Wholesale Trade is the treatment of piece goods
converters. In the past, these piece goods converters have been
included in Wholesale Trade. But in NAICS, converters will be included
in Manufacturing.

Achievement of Objectives

The classification meets the objectives for the North American
Industrial Classification System (NAICS). It groups establishments with
similar production processes, that is, it applies production-oriented
economic concepts. It achieves comparability for the three
participating countries. Based on the existing data, all three
countries expect to be able to publish data regularly at the total
level for Retail and Wholesale trade sectors.
Other objectives of the NAICS project were not as relevant in this
area of the classification as in others. These objectives are the
delineation of new and emerging industries, expansion of the service
industries, and industries engaged in the production of advanced
technologies. Therefore, the emphasis was on the objectives listed
above.

Section B--Annex: United States National Industry Detail

The U.S. national detail industries will be shown in the next
Federal Register notice.

Part XV--Proposed New Industry Structure for Oil and Gas Extraction;
Mining, except Oil and Gas; Support Activities for Mining

Section A--Structure

North American Industry Classification System
(NAICS)
Agreement Number 26

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following industries:

Oil and Gas Extraction
Mining, Except Oil and Gas
Support Activities for Mining

The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on November 8 and November 9, 1995 in
Washington, D.C.

------------------------------------------------------------------------
Accepted Signature Date
------------------------------------------------------------------------
Canada.............................. /S/ Jacob Ryten........ 11/9/95
Mexico.............................. /S/ Enrique Ordaz...... 11/9/95
United States....................... /S/ Jack E. Triplett... 11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX Oil and Gas Extraction
XXX Oil and Gas Extraction
XXXX Oil and Gas Extraction
XX Mining, Except Oil and Gas
XXX Coal Mining
XXXX Coal Mining
XXX Metal Ore Mining
XXXX Iron Mining
XXXX Gold and Silver Mining
XXXX Copper, Nickel, Lead, and Zinc Mining
XXXX Other Metal Ore Mining

[[Page 26645]]

XXX Non-Metallic Mineral Mining and Quarrying
XXXX Stone Mining and Quarrying
XXXX Sand, Gravel, Clay, Ceramic, and Refractory Mineral Mining and
Quarrying
XXXX Other Non Metallic Mineral Mining and Quarrying
XX Support Activities for Mining
XXX Support Activities for Mining
XXXX Support Activities for Mining

Attachment 2--North American Industry Classification System

Draft Classification for:

Mining

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industry classification for these
industries.
This draft classification applies to the sector Mining. This sector
is subdivided into three subsectors and five industry groups: Oil and
Gas Extraction, Coal Mining, Metal Ore Mining, Non-Metallic Mineral
Mining and Quarrying, and Support Activities for Mining. The five
industry groups are subdivided into 10 industries.

A General Outline

The Mining sector includes the extraction of liquids and gases such
as petroleum and natural gas by the operation of wells and the
extraction of naturally occurring minerals through underground or
surface mining. Also included is the beneficiating of the ores by
crushing, grinding, washing, drying, leaching, and other means. The
sector is divided into three subsectors, two being based on the types
of minerals extracted and beneficiated and one being support activities
for the extraction.
The existing industry classifications of Canada, Mexico, and the
United States were remarkably similar in their overall structure for
mining. There were significant differences in the classifications at
the detailed level, as the detailed level varied because of the
specific mineral deposits that were significant to each country. The
existing classifications were for the most part inherently production
oriented and satisfactory to data users. The structure maximizes the
comparability between the three countries and makes modest enhancements
to the production orientation of the classification.

Limitations and Constraints of the Classification

The extraction of any mineral is conditional on the presence of a
suitable mineral deposit. Generally, the extraction method varies
according to the type of deposit mined as does the beneficiating
process.
An approach that distinguished surface and underground mining as a
basis for defining industry groups was considered but in the case of
many metals and non-metals the activity in each was too small to permit
separation. On the other hand the difference in the beneficiating
processes (agglomerating, crushing, chemical, leaching etc.) required
for different ores provided the basis for distinguishing production
processes. The type of mineral deposit was therefore considered to be a
good proxy for the production process in most cases of metal mining.
However, these deposits vary significantly among the three countries.
For many types of minerals the number of deposits in any one country
may be too small to permit publishing data on that industry for that
country. This limited the number of possible industries. The industries
are therefore based on the type of minerals that generally occur
together in a mineral deposit in all three countries. For example, the
occurrence of combinations of copper, lead, zinc and nickel in the same
mineral deposit is common among the three countries. In the case of
non-metal mining, the quarrying of stone, above ground, requires
precision cutting of large blocks of stone which is a process very
different from the process of extracting sand, gravel, clay, ceramic
and refractory minerals.

Relationship to ISIC

Most 4-digit industries in this sector are contained within
Divisions 10-14, Mining and Quarrying, of the current International
Standard Industrial Classification of all Economic Activities (ISIC
Revision 3) of the United Nations. Generally, the industries can be
reaggregated to the ISIC divisions. However, there are some
differences: ISIC includes peat with coal in Division 10, Mining of
Coal and Lignite, Extraction of Peat, whereas peat extraction is
included in NAICS industry Non Metallic Mineral Mining and Quarrying.
Although peat is similar to coal in that it can be used as a fuel, the
extraction and beneficiating processes are distinctly different from
coal and are similar to the processes involved with non metallic
minerals. It should be noted that in North America peat is seldom used
as fuel but rather as a soil conditioner. ISIC Division 12, Mining of
Uranium and Thorium Ores, is not supportable as a NAICS industry.

Some Changes to the National Classifications

For Canada, CSIC 0611, Gold Mines, has been combined with the
silver part of CSIC 0614, Silver-Lead-Zinc Mines, to form the NAICS
four digit industry Gold and Silver Mining. Gold mining and silver
mining are separated at the national five digit level. Silver mining
becomes a null set as it does not exist in Canada. Silver is mined only
as a by product of lead and zinc mining in Canada.
CSIC 0612, Copper and Copper-Zinc Mines, has been combined with
CSIC 0613, Nickel-Copper Mines, plus the lead and zinc part of CSIC
0614 to form NAICS industry Copper, Nickel, Lead, and Zinc Mining.
CSIC 0615, Molybdenum Mines, was combined with CSIC 0616, Uranium
Mines, and CSIC 0619, Other Metal Mines, to form NAICS Other Metal
Mining.
CSIC 0811, Granite Quarries; CSIC 0812, Limestone Quarries; CSIC
0813, Marble Quarries; and CSIC 0814, Sandstone Quarries, becomes NAICS
industry Mining and Quarrying of Stone. However these 4 digit
industries are restored for national detail.
CSIC 0821, Sand and Gravel Pits, has been combined with CSIC 0815,
Shale Quarries, and the crude clays from clay pits part of CSIC 3511,
Clay Products, to form NAICS industry Sand, Gravel, Clay, Ceramic and
Refractory Mineral Mining and Quarrying. However, CSIC 0821, Sand and
Gravel Pits, is restored at the level of national detail. There are no
known establishments primarily engaged in extracting clay in Canada,
although extraction of clay exists by the manufacturers of clay
products.
For Mexico, peat mining has been split from CMAP 210000, Mining
and/or Beneficiation of Coal, to be included in NAICS industry Non-
Metallic Mineral Mining and Quarrying. The remaining portion of CMAP
21000 is equivalent to NAICS industry Coal Mining. Peat extraction is
of little statistical significance in Mexico.
For Mexico, the nickel part of CMAP 232006, Mining and/or
Beneficiation of Other Nonferrous Metallic Ores, has been split out.
This split will have little statistical impact as there is only a very
small amount of nickel mining in Mexico. The split is combined with
CMAP 232003, Mining and/or Beneficiation of Industrial Ore with a High
Lead and Zinc Content, and CMAP 232005, Mining and/or Beneficiation of
Ore with a High Copper Content, to form the NAICS four digit industry
Copper, Nickel, Lead, and Zinc Mining.
The creation of the Support Activities for Mining subsector in is
an important change for Mexico, since such activities are not
represented in the Mexican classification. However, the coverage of the
mining sector is very close to the current mining sector in CMAP.
For the United States, a structural change involved moving the
support

[[Page 26646]]

activity industries from their respective 1987 SIC Major Groups and
bringing them all together in the NAICS structure under the subsector
Support Activities for Mining.
The nickel ore mining part of 1987 SIC 1061, Ferroalloy Ores,
Except Vanadium, has been combined with 1987 SIC 1021, Copper Ores, at
the national level. This has a small statistical impact as production
is relatively insignificant. This national level industry plus 1987 SIC
1031, Lead and Zinc Ores, also maintained at the national level, form
NAICS industry Copper, Nickel, Lead, and Zinc Mining.
The bituminous limestone and bituminous sandstone part of 1987 SIC
1499, Miscellaneous Nonmetallic Minerals, Except Fuels, is moved out of
Non Metallic Minerals Mining to NAICS industry Mining and Quarrying of
Stone.

Achievement of Objectives

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the three NAICS industry
subsectors presented in Part XV, Section A--Attachment 1, contain less
detail than is currently in the U.S. SIC system, and less detail than
is required to meet important analytical requirements in the U.S. The
three country agreement on NAICS envisions that each country may
develop national detailed industries below the NAICS industry level, so
long as the national detail can be aggregated to the classification,
thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the three
NAICS industry subsectors covered in Part XV of this notice. For cases
where no 5-digit detail is shown, the ECPC is proposing that the NAICS
4-digit industries will also represent the most detailed U.S.
industries.

[[Page 26647]]

XXXXX.............. Construction Sand and E 1442 Construction Sand and Gravel.
Gravel Mining.
XXXXX.............. Industrial Sand Mining... E 1446 Industrial Sand.
XXXXX.............. Kaolin and Ball Clay E 1455 Kaolin and Ball Clay.
Mining.
XXXXX.............. Clay, Ceramic, and E 1459 Clay, Ceramic, and Refractory
Refractory Mineral Minerals, NEC.
Mining.
XXXX............... Other Non-Metallic Mineral
Mining and Quarrying:
XXXXX.............. Potash, Soda, and Borate E 1474 Potash, Soda, and Borate
Mineral Mining. Minerals.
XXXXX.............. Phosphate Rock Mining.... E 1475 Phosphate Rock.
XXXXX.............. Other Chemical and E 1479 Chemical and Fertilizer Mineral
Fertilizer Mineral Mining, NEC.
Mining.
XXXXX.............. All Other Non-Metallic R *1499 Miscellaneous Non-Metallic
Mineral Mining. Minerals, Except Fuels (except
bituminous limestone and
bituminous sandstone).
XX................. Support Activities for
Mining:
XXX................ Support Activities for
Mining:
XXXX............... Support Activities for
Mining:
XXXXX.............. Support Activities for E 1081 Metal Mining Services.
Metal Mining.
XXXXX.............. Support Activities for E 1241 Coal Mining Services.
Coal Mining.
XXXXX.............. Drilling Oil and Gas E 1381 Drilling Oil and Gas Wells.
Wells.
XXXXX.............. Support Activities for E 1382 Oil and Gas Field Exploration
Oil and Gas Field Services.
Exploration.
XXXXX.............. Other Oil and Gas Field E 1389 Oil and Gas Field Services, NEC.
Support Activities.
XXXXX.............. Support Activities for E 1481 Non-Metallic Minerals Services,
Non-Metallic Minerals except Fuels.
Except Fuels.
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and
* means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

Table 2
----------------------------------------------------------------------------------------------------------------
1987 SIC code 1987 SIC description 1997 U.S. description
----------------------------------------------------------------------------------------------------------------
1011.................................... Iron Ores....................... Iron Ore Mining.
1021.................................... Copper Ores..................... Copper Mining.
1031.................................... Lead and Zinc Ores.............. Lead and Zinc Mining.
1041.................................... Gold Ores....................... Gold Mining.
1044.................................... Silver Ores..................... Silver Mining.
1061.................................... Ferroalloy Ores, Except
Vanadium:
Nickel Ore Mining............. Copper and Nickel Mining (pt).
Other Ferroalloys............. Other Metal Ore Mining (pt).
1081.................................... Metal Mining Services........... Support Activities for Metal Mining.
1094.................................... Uranium-Radium-Vanadium Ores.... Uranium-Radium-Vanadium Ore Mining.
1099.................................... Miscellaneous Metal Ores, NEC... Other Metal Ore Mining (pt).
1221.................................... Bituminous Coal and Lignite Bituminous Coal and Lignite Surface
Surface Mining. Mining.
1222.................................... Bituminous Coal Underground Bituminous Coal Underground Mining.
Mining.
1231.................................... Anthracite Mining............... Anthracite Mining.
1241.................................... Coal Mining Services............ Support Activities for Coal Mining.
1311.................................... Crude Petroleum and Natural Gas. Crude Petroleum and Natural Gas
Extraction.
1321.................................... Natural Gas Liquids............. Natural Gas Liquid Extraction.
1381.................................... Drilling Oil and Gas Wells...... Drilling Oil and Gas Wells.
1382.................................... Oil and Gas Field Exploration Support Activities for Oil and Gas
Services. Field Exploration.
1389.................................... Oil and Gas Field Services, NEC. Other Oil and Gas Field Support
Activities.
1411.................................... Dimension Stone................. Dimension Stone Mining or Quarry.
1422.................................... Crushed and Broken Limestone.... Crushed and Broken Limestone Mining
or Quarrying.
1423.................................... Crushed and Broken Granite...... Crushed and Broken Granite Mining or
Quarrying.
1429.................................... Crushed and Broken Stone, NEC... Other Crushed and Broken Stone
Mining or Quarrying (pt).
1442.................................... Construction Sand and Gravel.... Construction Sand and Gravel Mining.
1446.................................... Industrial Sand................. Industrial Sand Mining.
1455.................................... Kaolin and Ball Clay............ Kaolin and Ball Clay Mining.
1459.................................... Clay, Ceramic, and Refractory Clay, Ceramic, and Refractory
Minerals, NEC. Mineral Mining.
1474.................................... Potash, Soda, and Borate Potash, Soda, and Borate Mineral
Minerals. Mining.
1475.................................... Phosphate Rock.................. Phosphate Rock Mining.
1479.................................... Chemical and Fertilizer Mineral Other Chemical and Fertilizer
Mining, NEC. Mineral Mining.
1481.................................... Non-Metallic Mineral Services, Support Activities for Non-Metallic
Except Fuels. Minerals, Except Fuels.
1499.................................... Miscellaneous Non-Metallic
Minerals, Except Fuels
Bituminous Limestone and Other Crushed and Broken Stone
Bituminous Sandstone. Mining or Quarrying (pt).

[[Page 26648]]

Except Bituminous Limestone and All Other Non-Metallic Mineral
Bituminous Sandstone. Mining.
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means time series break has been created that is greater than 3%
of the 1992 revenues for the 1987 SIC industry.

Description of Changes to the U.S. System

There were no new industries added to the 1997 industry structure
for this industry sector.
Oil and Gas Extraction--All oil and gas field services (1987 SIC's
1381, 1382, 1389) were transferred to the new 1997 subsector Services
Incidental to Mining. There were no changes in the existing 1987
industries.
Coal Mining--1987 SIC 1241, Coal Mining Services, was transferred
to the new 1997 subsector Services Incidental to Mining. There were no
changes in the existing 1987 industries.
Metal Ore Mining--1987 SIC 1061, Ferroalloy Ores, Except Vanadium,
has been split into two new industries, Copper and Nickel Mining and
Other Metal Ore Mining. 1987 SIC 1081, Metal Mining Services, was
transferred to the 1997 subsector Services Incidental to Mining. There
were no changes in the other existing 1987 industries.
Non-Metallic Mineral Mining and Quarrying--1987 SIC 1499,
Miscellaneous Non-Metallic Minerals, except Fuels, has been split
between Other Crushed and Broken Stone Quarrying and Mining (bituminous
limestone and bituminous sandstone) and All Other Non-Metallic Mineral
Mining (all other miscellaneous non-metallic minerals). 1987 SIC 1481,
Non-Metallic Mineral Services, except Fuels, was transferred to the
1997 subsector Services Incidental to Mining. There were no changes in
the other existing 1987 industries.
Support Activities for Mining--This new subsector was created to
include all incidental mining services. No new industries were created
within this subsector; however, six existing industries were
transferred out of the 1987 SIC industry groups based upon the mineral/
ore mined into this subsector.
The number of Mining Industries decreased from 31 in 1987 to 30 in
1997. For time series linkage 30 of the 31 1987 industries are
comparable within three percent of the 1997 industries.

Part XVI--Proposed New Industry Structure for Paper Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 27

This document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following industries: Paper Manufacturing
The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on November 8 and November 9, 1995 in
Washington, D.C.

------------------------------------------------------------------------
Accepted Signature Date
------------------------------------------------------------------------
Canada.............................. /S/ Jacob Ryten........ 11/9/95
Mexico.............................. /S/ Enrique Ordaz...... 11/9/95
United States....................... /S/ Jack E.Triplett.... 11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX Paper Manufacturing
XXX Pulp, Paper, and Paperboard Mills
XXXX Pulp Mills
XXXX Paper Mills
XXXX Paperboard Mills
XXX Converted Paper Product Manufacturing
XXXX Paperboard Container Manufacturing
XXXX Paper Bag and Coated and Treated Paper Manufacturing
XXXX Stationery Product Manufacturing
XXXX Other Converted Paper Product Manufacturing

Attachment 2--North American Industry Classification System

Draft Classification for:

Paper Manufacturing

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industrial classification for these
industries.
The draft classification provides for the subsector, Paper
Manufacturing. This subsector is further subdivided into two industry
groups and seven industries. The subsector will be part of the
Manufacturing sector of the classification.

A General Outline

The Paper Manufacturing industries produce pulp, paper and
converted paper products. The manufacture of these products is grouped
together because they constitute a series of vertically connected
processes. More than one is often carried out in a single
establishment. There are essentially three activities. The manufacture
of pulp involves separating the cellulose fibers from other impurities
in wood or used paper. The manufacture of paper involves matting these
fibers into a sheet. Converted paper products are produced from paper
and other materials by various cutting and shaping techniques.
The Paper Manufacturing subsector is subdivided into two industry
groups, the first for the manufacture of pulp and paper and the second
for the manufacture of converted paper products. Paper making is
treated as the core activity of the subsector. Therefore, any
establishment that makes paper (including paperboard), either alone or
in combination with pulp manufacture or paper converting, is classified
as a Paper or Paperboard Mill. Establishments that make pulp but no
paper are classified as Pulp Mills. Pulp Mills, Paper Mills and
Paperboard Mills comprise the first industry group.
Establishments that make products from purchased paper and other
materials make up the second industry group, Converted Paper Product
Manufacturing. This general activity is then subdivided based, for the
most part, on process distinctions. Paperboard Container Manufacturing

[[Page 26649]]

uses corrugating and cutting machinery to form paperboard into
containers. Paper Bag and Coated and Treated Paper Manufacturing
establishments cut and coat paper. Stationery Product Manufacturing
establishments produce a variety of paper products used for writing,
filing and similar applications. Other Converted Paper Product
Manufacturing includes in particular the conversion of sanitary paper
stock into such things as tissue paper and disposable diapers.
An important process used in the Paper Bag and Coated and Treated
Paper Manufacturing industry is lamination, often combined with
coating. Lamination and coating produces a composite material with
improved properties of strength, impermeability and so on. The
laminated materials may be paper, metal foil or plastic film. While
paper is often one of the components, it is not always. However,
lamination of plastic film to plastic film is classified in Rubber and
Plastic Product Manufacturing because establishments that do this often
first produce the film. The same situation holds with respect to bags.
The manufacture of bags from plastic only, whether or not laminated, is
classified in Rubber and Plastic Product Manufacturing, but all other
bag manufacturing is classified in this industry.

Limitations and Constraints of the Classification

In the Paper Manufacturing industry, most activities that were
identified in one country exist in the others. However, often an
activity is not economically significant to the same degree in all
three countries. For example, a relatively broad NAICS industry was
created for Paper Mills, because the possible subdivisions are small in
Mexico.
An operating rule has therefore been adopted for this industry
subsector that the NAICS industries must be economically significant
and publishable in all three countries. Each country will publish
additional categories that comprise subdivisions of NAICS industries,
to present data for activities that are nationally significant.
For those users requiring detailed commodity information, each
country will publish information on the products of these industries.
Efforts are also underway to harmonize the commodity classifications to
allow for greater comparability of these statistics.

Relationship to ISIC

Most 4-digit NAICS industries in this subsector are contained in
Division 21, Manufacture of Paper and Paper Products, of the current
International Standard Industrial Classification of all Economic
Activities (ISIC, Revision 3) of the United Nations. Four of the seven
NAICS 4-digit industries in this subsector are contained entirely in
this Division. There are, however, some differences between the two
systems.
NAICS includes the manufacture of some products that are made from
non-paper materials, such as multi-web plastic bags, in Paper Bag and
Coated and Treated Paper Manufacturing, because the production
processes are similar regardless of the material. ISIC classifies these
articles according to their principal component material.
The other differences with ISIC are minor, but they do result in
the following NAICS industries not being entirely contained within ISIC
Division 21. Paper Mills in NAICS includes the manufacture of saturated
papers, if the paper is made in the same establishment. ISIC treats
this activity in manufacture of Non-Metallic Mineral Products. It is a
minor difference. Other Converted Paper Product Manufacturing includes
some minor activities, such as the manufacture of paper novelties, that
are classified elsewhere in ISIC.

Some Changes to the National Classifications

For Canada, the Paper Manufacturing subsector is largely the same
as the current Canadian classification's Paper and Allied Products
Industries major group. There are two major differences. The Canadian
classification includes the manufacture of building board in Paper
Manufacturing, whereas NAICS includes it in Wood Manufacturing, except
Furniture because it is in fact made from wood fibers and not paper.
The saturation of paper products with asphalt is classified in NAICS
Petroleum and Coal Product Manufacturing, because the saturation
process is more important to the activity than the material being
saturated. The structure of this NAICS subsector is similar to that of
the Canadian classification, but there is less detail.
For Mexico, the Paper Manufacturing subsector is largely the same
as the current Mexican classification's Manufacture of Pulp, Paper and
Paper Products. The main difference is the classification of some
sanitary products, such as disposable paper diapers, in Textile
Products. The structure and amount of detail of this NAICS subsector is
similar to that of the corresponding area of the Mexican
classification.
For the United States, there is little difference between the Paper
Manufacturing subsector of NAICS and the current Paper and Allied
Products Major Group. Converted foil containers are included in the
NAICS subsector; they are classified in Metal Fabricating in the 1987
SIC.

Achievement of Objectives

The classification meets the objectives for the North American
Industry Classification System (NAICS). It includes industries that
group establishments with similar production processes, that is, it
applies the production-oriented economic concept. The hierarchical
structure of the classification also follows the production concept.
Pulp and paper manufacturing are much more capital intensive operations
than paper converting, and the material inputs are different.
Other objectives of the NAICS project are not as relevant in this
area of the classification as in others. These objectives are the
delineation of new and emerging industries and service industries. The
industrial sector in question is relatively mature and generally
produces goods. At the product level, there are numerous developments,
such as the use of recycled paper in pulp making; however, these do not
form the basis of establishment organization and hence of industries.
Therefore, the emphasis is on the objectives listed above.
The industries have high specialization ratios, and they are
economically significant. The detail (4-digit) level and structure of
the classification are balanced in size. This enhances the
classification's suitability for sampling, data-publishing and other
aspects of survey operations. Finally, while disruptions to time series
exist, they have been minimized. The statistical agencies can develop
statistical ``links'' to enable the re- tabulation of time series on
the new NAICS classification structure.
The classification achieves comparability for the three
participating countries. Based on existing data, all three countries
expect to be able to publish data regularly at the industry (4-digit)
level of the structure. All countries agree on the detailed definitions
of the industries.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the NAICS industry subsector
presented in Part XVI, Section A--Attachment 1, contain less detail
than is currently in the U.S. SIC system, and less detail than

[[Page 26650]]

is required to meet important analytical requirements in the U.S. The
three country agreement on NAICS envisions that each country may
develop national detailed industries below the NAICS industry level, so
long as the national detail can be aggregated to the NAICS
classification, thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS
industry subsector covered in Part XVI of this notice. For cases where
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

Table 1
----------------------------------------------------------------------------------------------------------------
1987
1997 NAICS and U.S. Status code SIC 1987 SIC description
description code
----------------------------------------------------------------------------------------------------------------
XX................. Paper Manufacturing:
XXX................ Pulp, Paper and Paperboard
Mills:
XXXX............... Pulp Mills................ R *2611 Pulp Mills (pulp producing mills
only).
XXXX............... Paper Mills:
XXXXX.............. Paper Mills, except R *2611 Pulp Mills (pulp mills producing
Newsprint Mills. paper).
................ *2621 Paper Mills (pt) (except
newsprint mills).
XXXXX.............. Newsprint Mills.......... N *2621 Paper Mills (pt) (newsprint
mills).
XXXX............... Paperboard Mills.......... E *2631 Paperboard Mills.
XXX................ Converted Paper Product
Manufacturing:
XXXX............... Paperboard Container
Manufacturing:
XXXXX.............. Setup Paperboard Box E 2652 Setup Paperboard Boxes.
Manufacturing.
XXXXX.............. Corrugated and Solid E 2653 Corrugated and Solid Fiber Boxes.
Fiber Box Manufacturing.
XXXXX.............. Fiber Can, Tube, Drum, E 2655 Fiber Cans, Tubes, Drums, and
and Similar Product. Similar Products.
Manufacturing:
XXXXX.............. Non-Folding Sanitary R 2656 Sanitary Food Containers, Except
Food Container Folding.
Manufacturing.
................ *2679 Converted Paper and Paperboard
Products, NEC (egg cartons and
other containers from purchased
paper).
XXXXX.............. Folding Paperboard Box E 2657 Folding Paperboard Boxes,
Manufacturing. Including Sanitary.
XXXX............... Paper Bag and Coated and
Treated Paper
Manufacturing:
XXXXX.............. Coated and Laminated R *2671 Packaging Paper and Plastics
Packaging Paper and Film, Coated and Laminated
Plastic Film (single-web paper, paper
Manufacturing. multiweb laminated rolls and
sheets for packaging uses).
XXXXX.............. Coated and Laminated R 2672 Coated and Laminated Paper, NEC.
Paper Manufacturing.
................ *2679 Converted Paper and Paperboard
Products, NEC (wallpaper and
gift wrap paper).
XXXXX.............. Plastic, Foil, and Coated R *2673 Plastics, Foil, and Coated Paper
Paper Bag Manufacturing. Bags (coated or multiweb
laminated bags).
XXXXX.............. Uncoated Paper and E 2674 Uncoated Paper and Multiwall
Multiwall Bag Bags.
Manufacturing.
XXXXX.............. Laminated Aluminum Foil N *3497 Metal Foil and Leaf (laminated
Manufacturing for Flexible aluminum foil rolls and sheets
Packaging Uses. for flexible packaging uses).
XXXX............... Stationery Product
Manufacturing:
XXXXX.............. Die-Cut Paper and N *2675 Die-Cut Paper and Paperboard and
Paperboard Office Supply Cardboard (file folders,
Manufacturing. tabulating cards, and other
paper and paperboard office
supplies)
................ *2679 Converted Paper and Paperboard
Products, NEC (paper supplies
for business machines and other
paper office supplies).
XXXXX.............. Envelope Manufacturing... E 2677 Envelopes.
XXXXX.............. Stationery, Tablet, and E 2678 Stationery, Tablets, and Related
Related Product Products.
Manufacturing.
XXXX............... Other Converted Paper
Product Manufacturing:
XXXXX.............. Surface-Coated Paperboard N *2675 Die-Cut Paper and Paperboard and
Manufacturing. Cardboard (pasted, lined,
laminated, or surface-coated
paperboard).
XXXXX.............. Sanitary Paper Product E 2676 Sanitary Paper Products.
Manufacturing.
XXXXX.............. Other Converted Paper and R *2675 Die-Cut Paper and Paperboard and
Paperboard Product Cardboard (die-cut paper and
Manufacturing. paperboard products, except
office supplies).
................ *2679 Converted Paper and Paperboard
Products, NEC (Other converted
paper and paperboard products
such as paper filters, crepe
paper, and laminated and tiled
wallboard).
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; L--null industry for the U.S.; N--new
industry R--revised industry; and * means ``part of''. The abbreviation NEC is used for Not Elsewhere
Classified.

[[Page 26651]]

Table 2
----------------------------------------------------------------------------------------------------------------
1987 SIC code 1987 SIC code 1997 U.S. description
----------------------------------------------------------------------------------------------------------------
2611.................................... Pulp Mills:
Pulp Producing Mills Only..... Pulp Mills.
Pulp and Paper Producing Mills Paper Mills, except Newsprint Mills
(pt).
[email protected] Paper Mills:
Except Newsprint Mills........ Paper Mills, except Newsprint Mills
(pt).
Newsprint Mills............... Newsprint Mills.
2631.................................... Paperboard Mills................ Paperboard Mills.
2652.................................... Setup Paperboard Boxes.......... Setup Paperboard Box Manufacturing.
2653.................................... Corrugated and Solid Fiber Boxes Corrugated and Solid Fiber Box
Manufacturing.
2655.................................... Fiber Cans, Tubes, Drums, and Fiber Can, Tube, Drum, and Similar
Similar Products. Product Manufacturing.
2656.................................... Sanitary Food Containers, Except Non-Folding Sanitary Food Container
Folding. Manufacturing (pt).
2657.................................... Folding Paperboard Boxes, Folding Paperboard Box
Including Sanitary. Manufacturing.
[email protected] Packaging Paper and Plastics Coated and Laminated Packaging Paper
Film, Coated and Laminated and Plastic Film Manufacturing.
Single-Web Paper, Paper
Multiweb Laminated Rolls and
Sheets for Packaging Uses.
Plastic Packaging Film and Sheet Unsupported Plastic Packaging Film
and Sheet Manufacturing (Included
in Rubber and Plastic Product
Manufacturing subsector).
2672.................................... Coated and Laminated Paper, NEC. Coated and Laminated Paper
Manufacturing (pt).
[email protected] Plastics, Foil, and Coated Paper Coated and Laminated Paper
Bags: Manufacturing (pt).
Coated or Multiweb Laminated Plastic, Foil, and Coated Paper Bag
Bags. Manufacturing.
Plastics Bags................. Unsupported Plastic Bag
Manufacturing (Included in Rubber
and Plastic Product Manufacturing
subsector).
2674.................................... Uncoated Paper and Multiwall Uncoated Paper and Multiwall Bag
Bags. Manufacturing.
[email protected] Die-Cut Paper and Paperboard and
Cardboard:
File Folders, Tabulating Die-Cut Paper and Paperboard Office
Cards, and Other Paper and Supply Manufacturing (pt).
Paperboard Office Supplies.
Pasted, Lined, Laminated, or Surface-Coated Paperboard
Surface-Coated Paperboard. Manufacturing.
Die-Cut Paper and Paperboard Other Converted Paper and Paperboard
Products, Except Office Product Manufacturing (pt).
Supplies.
2676.................................... Sanitary Paper Products......... Sanitary Paper Product
Manufacturing.
2677.................................... Envelopes....................... Envelope Manufacturing.
2678.................................... Stationery, Tablets, and Related Stationery, Tablet, and Related
Products. Product Manufacturing.
[email protected] Converted Paper and Paperboard
Products, NEC:
Egg Cartons and Other Non-Folding Sanitary Food Container
Containers from Purchased Manufacturing (pt).
Paper.
Wallpaper and Gift Wrap Paper. Coated and Laminated Paper
Manufacturing (pt).
Paper Supplies for Business Die-Cut Paper and Paperboard Office
Machines and Other Paper Supply Manufacturing (pt).
Office Supplies.
Other Converted Paper and Other Converted Paper and Paperboard
Paperboard Products such as Product Manufacturing (pt).
Paper Filters, Crepe Paper,
and Laminated and Tiled
Wallboard.
[email protected] Metal Foil and Leaf:
Laminated Aluminum Foil Rolls Laminated Aluminum Foil
and Sheets for Flexible Manufacturing for Flexible
Packaging Uses. Packaging Uses.
Foil and Foil Containers...... All Other Fabricated Metal Product
Manufacturing (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means time series break has been created that is greater than 3%
of the 1992 revenues for the 1987 SIC industry.

Description of Changes to the U.S. System

Four new industries were added to the 1997 industry structure for
this industry subsector. The industries created were:
Newsprint Mills from part of 1987 SIC 2621, Paper Mills, to achieve
international comparability with Canada.
Laminated Aluminum Foil Manufacturing for Flexible Packaging Uses
from part of 1987 SIC 3497, Metal Foil and Leaf, to achieve
international comparability, and because the production processes are
similar, regardless of the material used. This is the lamination, not
creation of foil. Canada has this in CSIC 27, Paper and Allied
Products.
Die-Cut Paper and Paperboard Office Supply Manufacturing from part
of 1987 SIC 2675, Die-Cut Paper and Paperboard and Cardboard, and 1987
SIC 2679, Converted Paper and Paperboard Products, NEC. These two 1987
SIC industries (SIC 2675 and SIC 2679) were split and recombined in
order to achieve international comparability with Canada and Mexico; as
a result of this split, it was possible for the U.S. to form this new
industry, which is justified on the production-oriented criterion and
has the effect of reducing the size of an ``NEC'' category in the 1987
SIC.
Surface-Coated Paperboard Manufacturing from part of 1987 SIC 2675,
Die-Cut Paper and Paperboard and Cardboard, to achieve international
comparability.
Two activities were transferred out of 1987 Major Group 26, Paper
and Allied Products, into the 1997 NAICS Rubber and Plastic Product
Manufacturing

[[Page 26652]]

subsector, because of similarities of production process. These were:
Plastic packaging film and sheet from 1987 SIC 2671, Packaging
Paper and Plastics Film, Coated and laminated plastic bags from 1987
SIC 2673, Plastics, Foil, and Coated Paper Bags.
Also, several activities were transferred within the Paper
Manufacturing subsector. The number of paper manufacturing industries
increased from 17 in 1987 to 20 in 1997. For time series linkage, 13 of
the 17 1987 industries are comparable within three percent of the 1997
industries.

Part XVII--Proposed New Industry Structure for Nonmetallic Mineral
Product Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 28

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following industries:

Nonmetallic Mineral Product Manufacturing

The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on November 8 and November 9, 1995 in
Washington, D.C.

------------------------------------------------------------------------
Accepted Signature Date
------------------------------------------------------------------------
Canada.............................. /S/ Jacob Ryten........ 11/9/95
Mexico.............................. /S/ Enrique Ordaz...... 11/9/95
United States....................... /S/ Jack E. Triplett... 11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX Nonmetallic Mineral Product Manufacturing
XXX Clay Product and Refractories Manufacturing
XXXX Pottery, Ceramics, and Plumbing Fixture Manufacturing
XXXX Clay Building Material and Refractories Manufacturing
XXX Glass, Glass Product and Glass Container Manufacturing
XXXX Glass and Glass Product Manufacturing
XXXX Glass Container Manufacturing
XXX Cement and Concrete Product Manufacturing
XXXX Hydraulic Cement Manufacturing
XXXX Ready-Mix Concrete Manufacturing
XXXX Concrete Pipe, Brick, and Block Manufacturing
XXXX Other Precast Concrete Product Manufacturing
XXX Lime, Gypsum and Gypsum Product Manufacturing
XXXX Lime Manufacturing
XXXX Gypsum and Gypsum Product Manufacturing
XXX Miscellaneous Nonmetallic Mineral Product Manufacturing
XXXX Abrasive Product Manufacturing
XXXX Other Miscellaneous Nonmetallic Mineral Product Manufacturing

Attachment 2--North American Industry Classification System

Draft Classification for:

Nonmetallic Mineral Product Manufacturing

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industrial classification for these
industries.
The draft classification provides for the subsector Nonmetallic
Mineral Product Manufacturing. The subsector is sub-divided into five
industry groups and twelve industries. This subsector will be part of
the Manufacturing sector of the classification.

A General Outline

The Nonmetallic Mineral Product Manufacturing industries produce
such products as bricks, refractories, and ceramic products, and glass
and glass products, such as plate glass, fiberglass and containers.
Also included are cement and concrete products, lime, gypsum and other
nonmetallic mineral products, including abrasive products, cut stone
and mineral wool. The products are used in a wide range of activities
from construction and heavy and light manufacturing to articles for
personal consumption.
Processes used in the Nonmetallic Mineral Product Manufacturing
industries include grinding, mixing, cutting, shaping, and honing sand,
stone, ceramic, and other nonmetallic raw material inputs. Heat often
is used in the process, and chemicals are frequently mixed to change
the composition, purity, and chemical properties of the intended
product. For example, glass is produced by heating silica sand to the
melting point (sometimes combined with cullet or recycled glass) and
then drawn or blow molded to the desired shape or thickness. Refractory
materials are heated and then formed to brick or other shapes for use
in industrial applications.

Limitations and Constraints of the Classification

A few factors constrained the structure and detail of the
classification in the area under consideration. Most of the activities
that take place in one country exist in the others. However, often an
activity is not economically significant to the same degree in all
countries. Another constraint is the small number of producers in some
countries. For example, separate NAICS industries could not be created
for refractories or concrete pipe because of confidentiality problems
in Canada. Similar limitations prevent creation of more detailed
industries for glass and glass products, mineral wool and other
nonmetallic minerals products. Each country will publish additional
categories that comprise subdivisions of NAICS industries, to present
data for activities that are nationally significant.
For those users requiring detailed commodity information, each
country will publish information on the products of these industries.
Efforts are also underway to harmonize the commodity classifications to
allow for greater comparability of these statistics.

Relationship to ISIC

All NAICS 4-digit industries in this subsector are contained in
Division 26, Manufacture of Nonmetallic Mineral Products, of the
current International Standard Industrial Classification of All
Economic Activities (ISIC, Revision 3) of the United Nations. This
means that one can combine the industries of this NAICS subsector and
be comparable to ISIC Division 26.

Some Changes to the National Classifications

For Canada, the production of glass yarn was moved from CSIC 1811,
Man-Made Fiber and Filament Yarn, and mirrors from CSIC 3259, Other
Motor Vehicle Accessories and Parts. Other changes consist of a
restructuring of the existing Canadian subsector for Nonmetallic
Minerals Product Manufacturing. For example, the production of glass
products was separated for establishments producing glass, and those
that purchase glass, then manufacture glass products.
For Mexico, all changes are within the existing CMAP class for
Nonmetallic Minerals. Changes include the separation of glass fibers
(in primary

[[Page 26653]]

glass production in NAICS) from glass insulation; moving the production
of dead burned dolomite from the refractory industry to the NAICS Lime
Manufacturing industry; separating decorative glass from glass
containers; and moving articles made from plaster of Paris to the Other
Nonmetallic Mineral Product Manufacturing industry.
For the United States, little change was made to this subsector.
The most important change was the elimination of the all but non-
existent asbestos product industry. Two remaining products are made by
establishments formerly classified in this industry: (1) Brake linings
were moved to the brake parts industry in the Transportation Equipment
Manufacturing subsector and (2) gaskets were moved to the Other
Nonmetallic Mineral Product Manufacturing industry. Other changes
within the subsector were to move dry mix cement from the concrete
products industry, to move steel wool from the abrasives industry, to
move some plaster work into the NAICS industry for Gypsum and Gypsum
Product Manufacturing, and to create new industries for cast concrete
products.

Achievement of Objectives

The classification meets the objectives for the North American
Industry Classification System (NAICS). It includes industries that
group establishments with similar production processes, that is, it
applies the production-oriented economic concept. In the main, the
hierarchical structure of the classification also follows the
production concept.
Other objectives of the NAICS project are not as relevant in this
area of the classification as in others. These objectives are the
delineation of new and emerging industries, service industries and
industries engaged in the production of advanced technologies. The
industrial sector in question is relatively mature, generally produces
goods, and has employed relatively stable technology. Therefore, the
emphasis is on the objectives listed above.
The industries have high specialization ratios, and they are
economically significant. The detail (4-digit) level and structures of
the classification are balanced in size. This enhances the
classification's suitability for sampling, data publishing and other
aspects of survey operations. Finally, while disruptions to time series
exist, they have been minimized.
The classification achieves comparability for the three
participating countries. Based on existing data, all three countries
expect to be able to publish data regularly at the industry (4-digit)
level of the structure. All countries agree on the detailed definitions
of the industries.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the NAICS industry subsector
presented in Part XVII, Section A--Attachment 1, contain less detail
than is currently in the U.S. SIC system, and less detail than is
required to meet important analytical requirements in the U.S. The
three country agreement on NAICS envisions that each country may
develop national detailed industries below the NAICS industry level, so
long as the national detail can be aggregated to the NAICS
classification, thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS
industry subsector covered in Part XVII of this notice. For cases where
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

[[Page 26654]]

XXXX............... Hydraulic Cement E 3241 Cement, Hydraulic.
Manufacturing.
XXXX............... Ready-Mix Concrete E 3273 Ready-Mixed Concrete.
Manufacturing.
XXXX............... Concrete Pipe, Brick and
Block Manufacturing:
XXXXX.............. Concrete Block and Brick E 3271 Concrete Block and Brick.
Manufacturing.
XXXXX.............. Concrete Pipe N *3272 Concrete Products, Except Block
Manufacturing. and Brick (concrete pipe).
XXXX............... Other Precast Concrete N *3272 Concrete Products, Except Block
Product Manufacturing. and Brick (concrete products,
except dry mix concrete, pipe,
bricks and blocks).
XXX................ Lime, Gypsum and Gypsum
Product Manufacturing:
XXXX............... Lime Manufacturing........ E 3274 Lime.
XXXX............... Gypsum and Gypsum Product R 3275 Gypsum Products.
Manufacturing.
*3299 Nonmetallic Mineral Products, NEC
(moldings, ornamental and
architectural plaster work).
XXX................ Miscellaneous Nonmetallic
Mineral Product
Manufacturing:
XXXX............... Abrasive Product R *3291 Abrasive Products (except
Manufacturing. metallic scouring sponges and
scouring pads).
XXXX............... Other Miscellaneous
Nonmetallic Mineral
Product Manufacturing:
XXXXX.............. Cut Stone and Stone E 3281 Cut Stone and Stone Products.
Product Manufacturing.
XXXXX.............. Ground or Treated Mineral E 3295 Minerals and Earths, Ground or
and Earth Manufacturing. Otherwise Treated.
XXXXX.............. Mineral Wool E 3296 Mineral Wool.
Manufacturing.
XXXXX.............. All Other Miscellaneous R *3272 Concrete Products, Except Block
Nonmetallic Mineral and Brick (dry mixture
Product Manufacturing. concrete).
*3292 Asbestos Products (except brake
pads and linings).
*3299 Nonmetallic Mineral Products, NEC
(except moldings, ornamental and
architectural plaster work).
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; L-null industry for the U.S.; N--new
industry; R-revised industry; and * means ``part of''. The abbreviation NEC is used for Not Elsewhere
Classified.

Table 2
----------------------------------------------------------------------------------------------------------------
1987 SIC code 1987 SIC description 1997 U.S. description
----------------------------------------------------------------------------------------------------------------
3211.................................... Flat Glass...................... Flat Glass Manufacturing.
3221.................................... Glass Containers................ Glass Container Manufacturing.
3229.................................... Pressed and Blown Glass and Other Pressed and Blown Glass and
Glassware, NEC. Glassware Manufacturing.
3231.................................... Glass Products, Made of Glass Product Manufacturing Made of
Purchased Glass. Purchased Glass.
3241.................................... Cement, Hydraulic............... Hydraulic Cement Manufacturing.
3251.................................... Brick and Structural Clay Tile.. Brick and Structural Clay Tile
Manufacturing.
3253.................................... Ceramic Wall and Floor Tile..... Ceramic Wall and Floor Tile
Manufacturing.
3255.................................... Clay Refractories............... Clay Refractory Manufacturing.
3259.................................... Structural Clay Products, NEC... Other Structural Clay Product
Manufacturing.
3261.................................... Vitreous China Plumbing Fixtures Vitreous China Plumbing Fixture and
and China and Earthenware China and Earthenware Fitting and
Fittings and Bathroom Bathroom Accessory Manufacturing.
Accessories.
3262.................................... Vitreous China Table and Kitchen Vitreous China, Fine Earthenware and
Articles. Other Pottery Product Manufacturing
(pt).
3263.................................... Fine Earthenware (Whiteware) Vitreous China, Fine Earthenware and
Table and Kitchen Articles. Other Pottery Product Manufacturing
(pt).
3264.................................... Porcelain Electrical Supplies... Porcelain Electrical Supply
Manufacturing.
3269.................................... Pottery Products, NEC........... Vitreous China, Fine Earthenware,
and Other Pottery Product
Manufacturing (pt).
3271.................................... Concrete Block and Brick........ Concrete Block and Brick
Manufacturing.
[email protected] Concrete Products, Except Block ....................................
and Brick:
Dry Mixture Concrete.......... Other Miscellaneous Nonmetallic
Mineral Product Manufacturing (pt).
Concrete Pipes................ Concrete Pipe Manufacturing.
Other Concrete Products...... Other Precast Concrete Product
Manufacturing.
3273.................................... Ready-Mixed Concrete............ Ready-Mix Concrete Manufacturing.
3274.................................... Lime............................ Lime Manufacturing.
3275.................................... Gypsum Products................. Gypsum and Gypsum Product
Manufacturing (pt).
3281.................................... Cut Stone and Stone Products.... Cut Stone and Stone Product
Manufacturing.
3291.................................... Abrasive Products: ....................................
Metallic Scouring Sponges and Other Metal Product Manufacturing
Scouring Pads. (pt) (Included in Fabricated Metal
Product Manufacturing subsector).
Other Abrasive Products...... Abrasive Product Manufacturing.
[email protected] Asbestos Products ....................................

[[Page 26655]]

Asbestos Brake Linings and Motor Vehicle Brake System
Pads. Manufacturing (pt) (Included in
Transportation Equipment
Manufacturing subsector).
Other Asbestos Products...... Other Miscellaneous Nonmetallic
Mineral Product Manufacturing.
3295.................................... Minerals and Earths, Ground or Ground or Treated Mineral and Earth
Otherwise Treated. Manufacturing.
3296.................................... Mineral Wool.................... Mineral Wool Manufacturing.
3297.................................... Nonclay Refractories............ Nonclay Refractory Manufacturing.
[email protected] Nonmetallic Mineral Products, ....................................
NEC.
Moldings, Ornamental and Gypsum and Gypsum Product
Architectural Plaster Work. Manufacturing (pt).
Other Nonmetallic Mineral Other Miscellaneous Nonmetallic
Products. Mineral Product Manufacturing (pt).
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means time series break has been created that is greater than 3%
of the 1992 revenues for the 1987 SIC industry.

Description of Changes to the U.S. System

1987 SIC 3272, Concrete Products, Except Block and Brick, was split
into three new industries in the 1997 structure for this industry
subsector as follows:
Concrete Pipe Manufacturing for international comparability.
Other Precast Concrete Product Manufacturing.
Other Miscellaneous Nonmetallic Mineral Product Manufacturing.
Two activities were transferred out of 1987 Major Group 32, Stone,
Clay, Glass and Concrete Products:
Metallic scouring sponges and scouring pads from 1987 SIC 3291,
Abrasive Products, were moved into the 1997 NAICS Fabricated Metal
Product Manufacturing subsector to achieve comparability with Canada
and Mexico and to better meet production concept criteria.
Asbestos brake linings and pads from 1987 SIC Code 3292, Asbestos
Products, were moved into the 1997 NAICS Transportation Equipment
Manufacturing subsector to match Canada and Mexico, and because the
production of brake linings from asbestos and non-asbestos materials
are similar processes.
1987 SIC 3262, Vitreous China Table and Kitchen Articles; 1987 SIC
3263, Fine Earthenware (Whiteware) and Kitchen Articles; and 1987 SIC
3269, Pottery Products, Not Elsewhere Classified, were combined into
the new Vitreous China, Fine Earthenware and Other Pottery Product
Manufacturing national industry. The combination was made because the
1987 SIC's were too small to warrant separation. The new national
industry, however, shows strong production concept characteristics.
Also, some activities were transferred within the Nonmetallic
Mineral Product Manufacturing subsector. The number of nonmetallic
mineral product manufacturing industries decreased by two to 24, from
the 1987 SIC. For time series linkage, 23 of the 26 1987 industries are
comparable within three percent of the 1997 industries.

Part XVIII--Proposed New Industry Structure for Primary Metal
Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 29

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following industry:

Primary Metal Manufacturing

The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on November 8 and November 9, 1995 in
Washington, D.C.

------------------------------------------------------------------------
Accepted Signature Date
------------------------------------------------------------------------
Canada.............................. /S/ Jacob Ryten........ 11/9/95
Mexico.............................. /S/ Enrique Ordaz...... 11/9/95
United States....................... /S/ Jack E. Triplett... 11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX Primary Metal Manufacturing
XXX Iron and Steel Mills and Ferroalloy Manufacturing
XXXX Iron and Steel Mills and Ferroalloy Manufacturing
XXX Steel Products Made from Purchased Steel
XXXX Iron and Steel Pipe and Tube Manufacturing from Purchased
Steel
XXXX Rolling and Drawing of Purchased Steel
XXX Smelting, Refining, Rolling, Drawing, and Extruding of Aluminum
XXXX Smelting, Refining Rolling, Drawing and Extruding of Aluminum
XXX Smelting, Refining, Rolling, Drawing, and Extruding of Other
Nonferrous Metal
XXXX Smelting and Refining of Nonferrous Metal Except Aluminum
XXXX Rolling, Drawing and Extruding Copper
XXXX Rolling, Drawing and Extruding of Nonferrous Metal Except
Copper or Aluminum
XXX Metal Castings
XXXX Ferrous Castings
XXXX Nonferrous Castings

Attachment 2--North American Industry Classification System

Draft Classification for:
Primary Metal Manufacturing

Representatives of the statistical agencies of Canada, Mexico and
the United States agree to a draft industry classification for these
industries.
The draft classification provides for the subsector, Primary Metal
Manufacturing. This subsector is divided into five industry groups and
nine industries. The subsector is part of the Manufacturing sector.

A General Outline

The Primary Metal Manufacturing industries are well defined and
include

[[Page 26656]]

the production of steel and steel products; the smelting, refining, and
rolling of nonferrous metals; and the production of metal castings. The
processes employed in these industries include the use of blast
furnaces to produce iron, and the use of basic oxygen and other steel
making furnaces to produce steel. Rolling, drawing, and extruding
processes to produce such products as pipe and tube, wire, and sheet
are also used in this subsector. Similar processes are used to produce
the nonferrous metal and metal products also included in this
subsector.
A structure along the lines of function or process (refining and
smelting, or rolling, drawing, and extruding) for all metals was
considered for this subsector. It was not adopted, because: (1) The
processes, although they have some similarity, are clearly distinct for
steel versus nonferrous metals. Within nonferrous metal manufacturing,
the processes are also different. For example, the primary reduction of
aluminum involves the massive use of electricity, where the primary
reduction of copper is accomplished by using heat and chemicals; (2)
establishments that roll, draw or extrude are highly specialized by
type of nonferrous metal; (3) due to the combination of process
activities in aluminum manufacture in Mexico, a separate trilateral
NAICS industry could not be created that would split primary aluminum
from aluminum, rolling, drawing, and extrusion. For this reason, a
separate NAICS 3-digit and 4-digit industry group and industry was
created for Smelting, Refining, Rolling, Drawing and Extruding
Aluminum, and a 3-digit NAICS group, Smelting, Refining, Rolling,
Drawing, and Extruding of Other Nonferrous Metal, that parallels the 3-
digit structure for Aluminum. The ``Other'' nonferrous group, however,
contains 4-digit levels for process industries for copper and for
nonferrous metals, except aluminum and copper.
The Iron and Steel Mills and Ferroalloy Manufacturing industry
group comprises establishments that produce steel products, beginning
with the treatment of iron ore, using furnaces or direct reduction
techniques and establishments that begin their process with the
purchase of iron, pig iron, or scrap. Establishments that produce
ferroalloys are also included in this subsector. Establishments
classified in the NAICS industry Rolling and Drawing of Purchased Steel
produce sheet and plate, pipe and tube, and wire drawn from purchased
steel. The subsector also includes establishments that produce wire
rods, bars, plates, sheet, and wire from purchased primary shapes.
The Smelting, Refining, Rolling, Drawing, and Extruding of Aluminum
and Other Nonferrous Metal industry groups include establishments that
produce primary nonferrous metals and those that produce nonferrous
metal products such as sheet, foil, shapes, etc.

Limitations and Constraints of the Classification

In the Primary Metal Manufacturing subsector, most activities that
were identified in one country exist in the others. However, the
combination of activities within establishments varied across the three
countries resulting in higher aggregations of some NAICS industries.
For example, broad NAICS classes were created for nonferrous castings,
due to production overlap in Mexico. Similarly, often an activity is
not economically significant to the same degree in all countries. For
example, a separate NAICS industry cannot be created for the smelting
and refining of copper, because the resulting industries are too small
in Canada.
Each country may publish additional national industries that
comprise subdivisions of NAICS industries, to present data for
activities that are nationally significant. For those users requiring
detailed commodity information, each country will publish information
on the products of these industries. Efforts are also underway to
harmonize the commodity classifications to allow for greater
comparability of these statistics.

Relationship to ISIC

Each of the NAICS industries created in this subsector can be
assigned without any subdivision to Division 27, Manufacture of Basic
Metals, of the current International Standard Industrial Classification
of all Economic Activities (ISIC Revision 3) of the United Nations. The
movement of steel and nonferrous wire drawing (CSIC's 3052 & 3381), and
precious metal refining (CSIC 3922), for Canada; of molding of metal
castings (CMAP 381100) for Mexico; and of the production of alumina
(1987 SIC 2819 pt), for the United States are all changes that enhance
the NAICS/ISIC relationship. This means that one can combine the
industries of this subsector and be comparable to ISIC Division 27.

Some Changes to the National Classifications

For Canada, an important improvement for both production precepts
and for international comparability was the movement of ferrous and
nonferrous wire drawing to this subsector from other areas. Smelting
and refining of precious metals was moved for the same reasons. Other
changes for Canada were internal to the existing subsector structure.
These changes generally involved realignment of industries to achieve
three country comparability, as well as to better meet the production
process principle. Some examples are the split of the Other Primary
Steel industry to match the NAICS industries for Iron and Steel Mills
and Ferroalloy Manufacturing and Rolling and Drawing of Purchased
Steel, and the separation of various types of castings from other
ferrous or nonferrous manufacturing to match agreed upon NAICS classes.
For Mexico, the only structural modification was to move the
production of ferrous and nonferrous castings from the current CMAP
classes for machinery. This change allows for three country
comparability, and improves the production definition of this
subsector. Other changes are internal to the existing Mexican
structure, but like those made for Canada above, they were made to both
achieve an international NAICS level, while at the same time, they are
sound production industry moves. An example is splitting the production
of rods and structural shapes, pipe and tube and wire made in a steel
making facility from those made from purchased primary steel shapes.
In the United States, a significant structural change was to move
the production of alumina from the Chemical Product Manufacturing
subsector. This change both matches the Canadian and Mexican treatment,
and groups the basic reduction of this ore with metal manufacturing
rather than in a chemical processing group. Other changes entailed the
realignment of internal nonferrous smelting, rolling and drawing,
mostly to achieve three country compatibility.

Achievement of Objectives

The classification meets the objectives for the North American
Industry Classification System. It includes industries that group
establishments with similar production processes, that is, it applies
the production-oriented economic concept. The hierarchical structure of
the classification also follows the production concept.
The classification achieves comparability for the three
participating countries. Based on existing data, all three countries
expect to be able to publish data regularly at the industry (4-digit)
level of the structure. All

[[Page 26657]]

countries agree on the definitions of industries.
Other objectives of the NAICS project are not as relevant in this
area of the classification as in others. These objectives are the
delineation of new and emerging industries, service industries and
industries engaged in the production of advanced technologies. The
industrial sector in question is relatively mature, generally produces
goods and employs relatively stable technology. Therefore, the emphasis
is on the objectives listed above.
The industries have high specialization ratios, and they are
economically significant. The classification is suitable for sampling,
data-publishing, and other aspects of survey operations.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the NAICS industry subsector
presented in Part XIX, Section A--Attachment 1, contain less detail
than is currently in the U.S. SIC system, and less detail than is
required to meet important analytical requirements in the U.S. The
three country agreement on NAICS envisions that each country may
develop national detailed industries below the NAICS industry level, so
long as the national detail can be aggregated to the NAICS
classification, thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS
industry subsector covered in Part XIX of this notice. For cases where
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

Table 1
----------------------------------------------------------------------------------------------------------------
1987
1997 NAICS & U.S. Status code SIC 1987 SIC description
description code
----------------------------------------------------------------------------------------------------------------
XX................. Primary Metal Manufacturing:
XXX................ Iron and Steel Mills and
Ferroalloy Manufacturing:
XXXX............... Iron and Steel Mills and
Ferroalloy Manufacturing:
XXXXX.............. Iron and Steel Mills..... N 3312 Steel Works, Blast Furnaces, and
Rolling Mills (except stand-
alone cake ovens).
................ *3399 Primary Metal Products, NEC
(ferrous powder, paste, flakes,
etc.).
XXXXX.............. Electrometallurgical R *3313 Electrometallurgical Products,
Ferroalloy Product except Steel (ferroalloys).
Manufacturing.
XXX................ Steel Products Made from
Purchased Steel:
XXXX............... Iron and Steel Pipe and E 3317 Steel Pipe and Tubes.
Tube Manufacturing from
Purchased Steel.
XXXX............... Rolling and Drawing of
Purchased Steel:
XXXXX.............. Cold-Rolled Steel Shape E 3316 Cold-Rolled Steel Sheet, Strip,
Manufacturing. and Bars.
XXXXX.............. Steel Wire Drawing....... R *3315 Steel Wiredrawing and Steel Nails
and Spikes (steel wire drawing).
XXX................ Smelting, Refining,
Rolling, Drawing and
Extruding of Aluminum:
XXXX............... Smelting, Refining,
Rolling, Drawing and
Extruding of Aluminum:
XXXXX.............. Primary Refining of E 3334 Primary Production of Aluminum.
Aluminum.
XXXXX.............. Secondary Smelting of N *3341 Secondary Smelting and Refining
Aluminum. of Nonferrous Metals (aluminum).
................ *3399 Primary Metal Products, NEC
(aluminum powder, paste, flakes,
etc.)
XXXXX.............. Alumina Manufacturing.... N *2819 Industrial Inorganic Chemicals,
NEC (alumina).
XXXXX.............. Aluminum Sheet, Plate, E 3353 Aluminum Sheet, Plate, and Foil.
and Foil Manufacturing.
XXXXX.............. Aluminum Extruded Product E 3354 Aluminum Extruded Products.
Manufacturing.
XXXXX.............. Other Aluminum Rolling R 3355 Aluminum Rolling and Drawing,
and Drawing NEC.
................ *3357 Drawing and Insulating of
Nonferrous Wire (aluminum wire
drawing).
XXX................ Smelting, Refining,
Rolling, Drawing, and
Extruding of Other
Nonferrous Metal:
XXXX............... Smelting and Refining of
Nonferrous Metal Except
Aluminum:
XXXXX.............. Primary Smelting and E 3331 Primary Smelting and Refining of
Refining of Copper. Copper.
XXXXX.............. Primary Smelting and E 3339 Primary Smelting and Refining of
Refining of Nonferrous Nonferrous Metals, Except Copper
Metal, Except Copper and and Aluminum.
Aluminum.
XXXXX.............. Secondary Smelting and R *3313 Electrometallurgical Products,
Refining of Nonferrous Except Steel (except ferrous
Metals. alloys).
................ *3341 Secondary Smelting and Refining
of Nonferrous Metals (except
aluminum).
................ *3399 Primary Metal Products, NEC
(nonferrous powders, flakes,
paste, etc., except aluminum).
XXXX............... Rolling, Drawing and
Extruding Copper:
XXXXX.............. Rolling, Drawing and R 3351 Rolling, Drawing, and Extruding
Extruding Copper. of Copper.
XXXXX.............. Drawing of Copper Wire... N *3357 Drawing and Insulating of
Nonferrous Wire (copper wire
drawing).

[[Page 26658]]

XXXX............... Rolling, Drawing, and R 3356 Rolling, Drawing, and Extruding
Extruding of Nonferrous of Nonferrous Metals, Except
Metal Except Copper or Copper and Aluminum.
Aluminum.
................ 3357* Drawing and Insulating of
Nonferrous Wire (wire drawing
except copper or aluminum).
XXX................ Metal Castings:
XXXX............... Ferrous Castings:
XXXXX.............. Gray, Malleable, and R 3321 Gray and Ductile Iron Foundries.
Ductile Iron Foundries.
................ 3322 Malleable Iron Foundries.
XXXXX.............. Steel Investment E 3324 Steel Investment Foundries.
Foundries.
XXXXX.............. Steel Foundries.......... E 3325 Steel Foundries, NEC.
XXXX............... Nonferrous Castings:
XXXXX.............. Aluminum Die-Castings.... E 3363 Aluminum Die-Castings.
XXXXX.............. Nonferrous Die-Castings, E 3364 Nonferrous Die-Castings, Except
Except Aluminum. Aluminum.
XXXXX.............. Aluminum Foundries....... E 3365 Aluminum Foundries.
XXXXX.............. Copper Foundries......... E 3366 Copper Foundries.
XXXXX.............. Nonferrous Foundries, E 3369 Nonferrous Foundries, Except
Except Aluminum and Aluminum and Copper.
Copper.
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and
* means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

Table 2
----------------------------------------------------------------------------------------------------------------
1987 SIC code 1987 SIC description 1997 U.S. description
----------------------------------------------------------------------------------------------------------------
[email protected] Industrial Inorganic Chemicals,
NEC:
Alumina....................... Alumina Manufacturing (pt).
Activated Carbon and Charcoal. Other Miscellaneous Chemical
Preparation Manufacturing (pt)
(Included in Chemical Product
Manufacturing subsector).
Inorganic Dyes................ Inorganic Dyes and Pigments
Manufacturing (pt) (Included in
Chemical Product Manufacturing
subsector).
Other......................... Other Miscellaneous Inorganic
Chemical Manufacturing (pt)
(Included in Chemical Manufacturing
subsector).
[email protected] Steel Works, Blast Furnaces Iron and Steel Mills.
(Including Coke Ovens),and
Rolling Mills.
Coke Ovens, not Integrated With Other Petroleum and Coal Product
Steel Mills Manufacturing (pt) (Included in
Petroleum and Coal Product
Manufacturing subsector).
[email protected] Electrometallurgical Products,
Except Steel:
Ferroalloys................... Electrometallurgical Ferroalloy
Product Manufacturing.
Nonferrous Alloys............. Secondary Smelting and Refining of
Nonferrous Metal (pt).
[email protected] Steel Wiredrawing and Steel
Nails and Spikes:
Steel Wire Drawing............ Steel Wire Drawing.
Nails, Spikes, Paper clips, Miscellaneous Fabricated Wire
Wire,. Product Manufacturing (pt)
Not Made in Wire Drawing Plants. (Included in Fabricated Metal
Product Manufacturing subsector).
3316.................................... Cold-Rolled Steel Sheet, Strip, Cold-Rolled Steel Shape
and Bars. Manufacturing.
3317.................................... Steel Pipe and Tubes............ Iron and Steel Pipe and Tube
Manufacturing from Purchased Steel.
3321.................................... Gray and Ductile Iron Foundries. Gray, Malleable, and Ductile Iron
Foundries (pt).
3322.................................... Malleable Iron Foundries........ Gray Malleable and Ductile Iron
Foundries (pt).
3324.................................... Steel Investment Foundries...... Steel Investment Foundries.
3325.................................... Steel Foundries, NEC............ Steel Foundries (pt).
3331.................................... Primary Smelting and Refining of Primary Smelting and Refining of
Copper. Copper (pt).
3334.................................... Primary Production of Aluminum.. Primary Refining of Aluminum.
3339.................................... Primary Smelting and Refining of Primary Smelting and Refining of
Nonferrous Metals, Except Nonferrous Metals, Except Copper
Copper and Aluminum. and Aluminum (pt).
[email protected] Secondary Smelting and Refining
of Nonferrous Metals:
Aluminum...................... Secondary Smelting of Aluminum (pt).
Except Aluminum............... Secondary Smelting and Refining of
Nonferrous Metals (pt).
3351.................................... Rolling, Drawing, and Extruding Rolling, Drawing, and Extruding of
of Copper. Copper.
3353.................................... Aluminum Sheet, Plate, and Foil. Aluminum Sheet, Plate, and Foil
Manufacturing.
3354.................................... Aluminum Extruded Products...... Aluminum Extruded Product
Manufacturing.
3355.................................... Aluminum Rolling and Drawing, Other Aluminum Rolling and Drawing,
NEC. (pt).
3356.................................... Rolling, Drawing, and Extruding Rolling, Drawing, and Extruding of
of Nonferrous Metals, Except Nonferrous Metals Except Copper or
Copper and Aluminum. Aluminum (pt).
[email protected] Drawing and Insulating of
Nonferrous Wire:

[[Page 26659]]

Aluminum Wire Drawing......... Other Aluminum Rolling and Drawing
(pt).
Copper Wire Drawing........... Drawing of Copper Wire.
Wire Drawing Except Copper or Rolling, Drawing, and Extruding of
Aluminum.. Nonferrous Metals Except Copper or
Aluminum (pt).
Communication and Energy Wire-- Communication and Energy Wire
Insulating Only.. Manufacturing (Included in
Electrical Equipment, Appliance and
Component Manufacturing subsector).
3363.................................... Aluminum Die-Castings........... Aluminum Die-Castings.
3364.................................... Nonferrous Die-Castings, Except Nonferrous Die-Castings, Except
Aluminum. Aluminum.
3365.................................... Aluminum Foundries.............. Aluminum Foundries.
3366.................................... Copper Foundries................ Copper Foundries.
3369.................................... Nonferrous Foundries, Except Nonferrous Foundries, Except
Aluminum and Copper. Aluminum and Copper.
3398.................................... Metal Heat Treating............. Metal Heat Treating (Included in
Fabricated Metal Product
Manufacturing subsector).
[email protected] Primary Metal Products, NEC:
Ferrous Powder, Paste, Flakes, Steel Mills (pt).
etc..
Aluminum Powder, Paste, Secondary Smelting of Aluminum (pt).
Flakes, etc..
Other Nonferrous Powder, Secondary Smelting and Refining of
Paste, Flakes, etc.. Nonferrous Metals (pt).
Nonferrous Nails, Brads, Miscellaneous Fabricated Wire
Staples, etc.. Product Manufacturing (pt)
(Included in Fabricated Metal
Product Manufacturing subsector).
Laminated Steel............... Electroplating, Plating, Polishing,
Anodizing, and Coloring (pt)
(Included in Fabricated Metal
Product Manufacturing subsector).
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of'', @ means time series break has been created that is greater than 3%
of the 1992 value of shipments for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere
Classified.

Description of Changes to the U.S. System

A number of the changes listed in this section were made for
reasons of international comparability. Where one or more of the three
North American countries had different definitions of an industry
classification, adjustments to the definitions in one or more countries
were required. In constructing NAICS, the three countries agreed to
move, where change was required to attain international comparability,
in the direction of the country or countries whose existing
classification definitions most closely corresponded to the production-
oriented concept adopted for NAICS. Cases where the U.S. changed are
listed below; other cases where Canada or Mexico moved toward the U.S.
classification are not, of course, listed in this section.
Four new industries were added to the 1997 industry structure for
this industry subsector. New industries were created for:
Iron and Steel Mills, from 1987 SIC 3312, Steel Works, Blast
Furnaces, and Rolling Mills, and part of 1987 SIC 3399, Primary Metal
Products, NEC, for comparability with Canada and Mexico, and because
the production processes include direct reduction and other furnace
processes similar to those used in manufacturing steel.
Secondary Smelting of Aluminum from part of 1987 SIC 3341,
Secondary Smelting and Refining of Nonferrous Metals, and part of 1987
SIC 3399, Primary Metal Products, NEC, because of specialized
production processes involved, and for international comparability.
Alumina Manufacturing from part of 1987 SIC 2819, Industrial
Inorganic Chemicals, in the 1987 Major Group 28, Chemicals and Allied
Products, to achieve international comparability. Canada has this in
CSIC 2951, Primary Production of Aluminum.
Drawing of Copper Wire from part of 1987 SIC 3357, Drawing and
Insulating of Nonferrous Wire, for international comparability, and
because it is a specialized production process.
One complete industry was transferred out of 1987 Major Group 33,
Primary Metals.
Metal Heat Treating was transferred into the 1997 subsector
Fabricated Metal Product Manufacturing. The move improves the
production process classification for this activity.
Five activities were transferred out of 1987 Major Group 33,
Primary Metals, and are described more fully in their new respective
NAICS subsectors.
Nails, spikes, paper clips, and wire, not made in wire drawing
plants, were transferred from 1987 SIC 3315, Steel Wiredrawing and
Steel Nails and Spikes, into Miscellaneous Fabricated Wire Product
Manufacturing in the 1997 subsector Fabricated Metal Product
Manufacturing.
Communication and energy wire-insulating only, was transferred from
1987 SIC 3357, Drawing and Insulating of Nonferrous Wire, into
Communication and Energy Wire Manufacturing in 1997 subsector
Electrical Equipment, Appliance and Component Manufacturing.
Nonferrous nails, brads, staples, etc. were transferred from 1987
SIC 3399, Primary Metal Products, NEC, into Miscellaneous Fabricated
Wire Product Manufacturing in the 1997 subsector Fabricated Metal
Product Manufacturing.
Laminated steel was transferred from 1987 SIC 3399, Primary Metal
Products, NEC, into Electroplating, Polishing, Anodizing, and Coloring
in 1997 subsector Fabricated Metal Product Manufacturing.
Coke ovens, not operated with a blast furnace were transferred from
part of 1987 SIC 3312, Blast Furnaces and Steel Mills, into Other
Petroleum and Coal Product Manufacturing in the 1997 NAICS subsector,
Petroleum and Coal Product Manufacturing.
Also, several activities were transferred within the subsector for
Primary Metal Manufacturing. The number of primary metal industries
remained the same between 1997 and 1987 at 26. For time series linkage,
20 of the 26 1987 industries are comparable within three percent of the
1997 industries.

[[Page 26660]]

Part XIX--Proposed New Industry Structure for Miscellaneous
Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 30

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following industries: Miscellaneous Manufacturing
The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries.
This NAICS structure was presented and provisionally accepted at
the NAICS Committee meeting held on November 8 and November 9, 1995 in
Washington, D.C.

------------------------------------------------------------------------
Accepted Signature Date
------------------------------------------------------------------------
Canada.............................. /S/ Jacob Ryten........ 11/9/95
Mexico.............................. /S/ Enrique Ordaz...... 11/9/95
United States....................... /S/ Jack E. Triplett... 11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX Miscellaneous Manufacturing
XXX Medical Equipment and Supply Manufacturing
XXXX Medical Equipment and Supply Manufacturing
XXX Cotton Ginning
XXXX Cotton Ginning
XXX Other Miscellaneous Manufacturing
XXXX Jewelry and Silverware Manufacturing
XXXX Sporting and Athletic Good Manufacturing
XXXX Doll, Toy, and Game Manufacturing
XXXX Office Supply, Except Paper Manufacturing
XXXX All Other Miscellaneous Manufacturing

Attachment 2--North American Industry Classification System

Draft Classification for:

Miscellaneous Manufacturing

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industrial classification for these
industries.
The draft classification provides for the subsector, Miscellaneous
Manufacturing. This subsector contains three industry groups and seven
industries. The subsector will be part of the Manufacturing sector of
the classification.

A General Outline

The Miscellaneous Manufacturing industries produce a wide range of
products that cannot be logically classified in other, specific
subsectors in manufacturing. Products as diverse as medical equipment
and supplies, ginned cotton, jewelry, sporting goods, toys and office
supplies are produced by the industries in the subsector.
Because this subsector is an ``other'' grouping, the processes used
vary significantly. For example, for cotton ginning, the separation of
the seed from the cotton lint, differs significantly from the
fabrication processes in making dolls or toys. Other processes used in
this subsector include the melting and shaping of precious metals to
make jewelry, and the bending, forming and assembly used in making
medical products.

Limitations and Constraints of the Classification

In the Miscellaneous Manufacturing industries, most activities that
were identified in one country exist in the others. However, often an
activity is not economically significant to the same degree in all
countries. In some instances, separate industries could not be created
due to size constraints. For example, a separate industry for musical
instruments was too small in Canada to support a separate NAICS
industry. Each country will publish additional categories that comprise
subdivisions of NAICS industries, to present data for activities that
are nationally significant.
For those users requiring detailed commodity information, each
country will publish information on the products of these industries.
Efforts are also underway to harmonize the commodity classifications to
allow for greater comparability of these statistics.

Relationship to ISIC

Three of the seven NAICS industries created in this subsector are
contained in a single division of the International Standard Industrial
Classification of all Economic Activities (ISIC Revision 3) of the
United Nations, without any subdivision. Two 4-digit NAICS industries
in this subsector, Sporting and Athletic Good Manufacturing and Doll,
Toy and Game Manufacturing, are contained within ISIC Division 36,
Miscellaneous Manufacturing, and the third, Cotton Ginning, is
contained within ISIC Division 01, Agriculture, Hunting and Related
Service Activities.
The following NAICS industries cannot be assigned to a single ISIC
division without being sub-divided: Medical Equipment and Supply
Manufacturing; Jewelry and Silverware Manufacturing; Office Supply,
Except Paper, Manufacturing; and Other Miscellaneous Manufacturing. The
Jewelry and Silverware industry would fall within a single ISIC
division, except for watch jewels and watch bands.

Some Changes to the National Classifications

The most significant change for Canada are the activities that
moved out of Miscellaneous Manufacturing and into Computer and
Electronic Product Manufacturing. These are the manufacturing of
navigational, measuring and control instruments. Another significant
change is the creation of the Medical Equipment and Supply
Manufacturing industry. This industry is created by combining
activities from nine separate industries in six different major groups.
Other industries that moved from the Miscellaneous Manufacturing
subsector include the Sign and Display industry and the Floor Tile
Linoleum and Coated Fabrics industry.
The creation of Medical Equipment and Supply Manufacturing
industries is the most significant change for Mexico. For Mexico, this
industry is created by combining activities from 14 separate industries
in three subsectors. Another structural change for Mexico is the
movement of cotton ginning from Basic Textile Manufacturing to
Miscellaneous Manufacturing. The NAICS industry, Doll, Toy and Game
Manufacturing, includes the manufacture of wood and plastic toys that
the Mexican classification places in wood products and plastics
products, respectively.
The most significant changes for the United States are two
structural changes. The Medical Equipment and Supply Manufacturing
industry group moves from Instruments and Related Products to
Miscellaneous Manufacturing and cotton ginning, formerly in 1987 SIC
Major Group, Agricultural Services, is moved to Miscellaneous
Manufacturing. In addition, several activities moved out of
miscellaneous manufacturing. Hard Surface Floor Covering was moved from
Miscellaneous Manufacturing to Rubber and Plastic Product
Manufacturing. Signs and Advertising Specialties was eliminated as a
separate industry and

[[Page 26661]]

the activities moved to various industries.

Achievement of Objectives

At the industry level, the classification meets the objectives for
the North American Industry Classification System (NAICS). It includes
industries that group establishments with similar production processes,
that is, it applies the production-oriented economic concept. Since
this is the miscellaneous subsector, the hierarchical structure is not
truly a production concept.
Other objectives of the NAICS project are not as relevant in this
area of the classification as in others. These objectives are the
delineation of new and emerging industries, service industries and
industries engaged in the production of advanced technologies. The
industrial sector in question is relatively mature, generally produces
goods and has employed relatively stable technology. Therefore, the
emphasis is on the objectives listed above.
The industries have high specialization ratios, and they are
economically significant. The detail (4-digit) level and structure of
the classification are balanced in size. This enhances the
classification's suitability for sampling, data-publishing and other
aspects of survey operations. Finally, while disruptions to time series
exist, they have been minimized.
The classification achieves comparability for the three
participating countries. Based on existing data, all three countries
expect to be able to publish data regularly at the industry (4-digit)
level of the structure. All countries agree on the detailed definitions
of the industries.

Section B--Annex: United States National Industry Detail

[[Page 26662]]

XXXX............... Doll, Toy, and Game
Manufacturing:
XXXXX.............. Doll and Stuffed Toy E 3942 Dolls and Stuffed Toys.
Manufacturing.
XXXXX.............. Game, Toy, and R *3944 Games, Toys, and Children's
Children's Vehicle Vehicles, Except Dolls and
Manufacturing. Bicycles (except metal
tricycles).
XXXX............... Office Supply , Except
Paper, Manufacturing:
XXXXX.............. Pen and Mechanical E 3951 Pens, Mechanical Pencils, and
Pencil Manufacturing. Parts.
XXXXX.............. Lead Pencil and Art Good R *2531 Public Building and Related
Manufacturing. Furniture (blackboards).
................ *3579 Office Machines, NEC (pencil
sharpeners, staplers and other
office equipment).
................ *3952 Lead Pencils, Crayons, and
Artists' Materials (except
drawing and india ink, and
drafting tables and boards).
XXXXX.............. Marking Device E 3953 Marking Devices.
Manufacturing.
XXXXX.............. Carbon Paper and Inked E 3955 Carbon Paper and Inked Ribbons.
Ribbon Manufacturing.
XXXX............... All Other Miscellaneous
Manufacturing:
XXXXX.............. Musical Instrument E 3931 Musical Instruments.
Manufacturing.
XXXXX.............. Fastener, Button, E 3965 Fasteners, Buttons, Needles, and
Needle, and Pin Pins.
Manufacturing.
XXXXX.............. Broom, Brush, and Mop R 3991 Brooms and Brushes.
Manufacturing.
................ *2392 Housefurnishings, Except Curtains
and Draperies (mops, floor and
dust).
XXXXX.............. Burial Casket Manufacturing.. E 3995 Burial Caskets.
XXXXX.............. All Other Miscellaneous R *2499 Wood Products, NEC (wood and
Manufacturing. metal frames for mirrors and
pictures).
................ *3999 Manufacturing Industries, NEC
(other miscellaneous products
not specially provided for
previously).
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and
*means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

[[Page 26663]]

Other Furniture or Fixtures... Other Furniture Manufacturing (pt)
(Included in Furniture
Manufacturing subsector).
3469.................................... Metal Stamping, NEC:
Stamping of Coins............. Jewelry Manufacturing, including
Precious Metal (pt).
Metal Stamping, except Kitchen Metal Stamping and Powder
Utensils, Pots and Pans for Metallurgical Manufacturing (pt)
Cooking and Coins. (Included in Fabricated Metal
Product Manufacturing subsector).
Kitchen Utensils and Pots and Kitchen Utensil, Pot and Pan
Pans for Cooking. Manufacturing (Included in
Fabricated Metal Product
Manufacturing subsector).
3479.................................... Coating, Engraving, and Allied
Services, NEC:
Jewelry Engraving and Etching, Costume Jewelry and Novelty
Costume Jewelry. Manufacturing (pt).
Jewelry Engraving and Etching, Jewelry Manufacturing, Precious
Precious Metal. Metal (pt).
Silverware and Flatware Silverware and Plated Ware
Engraving and Etching. Manufacturing (pt).
Other......................... Metal Coating, Engraving, and Allied
Services, Except Jewelry and
Silverware (Included in Fabricated
Metal Product Manufacturing
subsector).
[email protected] Fabricated Metal Products, NEC:
Metal Aerosol Valves.......... Other Valve and Pipe Fitting
Manufacturing (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).
Metal Boxes................... Metal Shipping Container, Barrel,
Drum, Keg, Pail, Bin, Box, etc.
Manufacturing (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).
Metal Furniture Parts, Household Metal Furniture
Household. Manufacturing (pt) (Included in
Furniture Manufacturing subsector).
Metal Furniture Parts, Office. Office Metal Furniture Manufacturing
(pt) (Included in Furniture
Manufacturing subsector).
Powder Metallurgy............. Metal Stampings and Powder
Metallurgy Manufacturing (pt)
(Included in Fabricated Metal
Product Manufacturing subsector).
Safe and Vault Locks.......... Hardware Manufacturing, Including
Locks (pt) (Included in Fabricated
Metal Product Manufacturing
subsector).
Trophies of Nonprecious Metals Costume Jewelry and Novelty
Manufacturing (pt).
Other Metal Products.......... All Other Fabricated Metal Product
Manufacturing (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).
[email protected] Office Machines, NEC:
Pencil Sharpeners, Staplers Lead Pencil and Art Good
and Other Office Equipment. Manufacturing (pt).
Timeclocks and Time Stamps.... Watch, Clock, and Part Manufacturing
(pt) (Included in Computer and
Electronic Product Manufacturing
subsector).
Other Office Machines......... Office Machine Manufacturing (pt)
(Included in Machinery
Manufacturing subsector).
3821.................................... Laboratory Apparatus and Laboratory Apparatus and Furniture
Furniture. Manufacturing.
3827.................................... Optical Instruments and Lenses.. Optical Instrument and Lens
Manufacturing (Included in
Machinery Manufacturing subsector).
3829.................................... Measuring and Controlling
Devices, NEC:
Medical Thermometers.......... Surgical Appliance and Supply
Manufacturing (pt).
Other Measuring and Other Measuring and Controlling
Controlling Devices. Device Manufacturing (Included in
Computer and Electronic Product
Manufacturing subsector).
3841.................................... Surgical and Medical Instruments Surgical and Medical Instrument
and Apparatus. Manufacturing.
[email protected] Orthopedic, Prosthetic, and
Surgical Appliances and
Supplies:
Orthopedic, Prosthetic, and Surgical Appliance and Supply
Surgical Appliances and Manufacturing (pt).
Supplies, except Electronic
Hearing Aids.
Electronic Hearing Aids....... Electromedical Equipment
Manufacturing (pt) (Included in
Computer and Electronic Product
Manufacturing).
3843.................................... Dental Equipment and Supplies... Dental Equipment and Supply
Manufacturing.
3844.................................... X-Ray Apparatus and Tubes and X-Ray Apparatus and Tube
Related Irradiation Apparatus. Manufacturing (Included in Computer
and Electronic Product
Manufacturing subsector).
3845.................................... Electromedical and Electromedical Equipment
Electrotherapeutic Apparatus. Manufacturing (Included in Computer
and Electronic Product
Manufacturing subsector).
3851.................................... Ophthalmic Goods................ Ophthalmic Good Manufacturing.
3911.................................... Jewelry, Precious Metal......... Jewelry Manufacturing, except
Precious Metal (pt).
3914.................................... Silverware, Plated Ware, and
Stainless Steel Ware:
Nonprecious Cutlery and Cutlery and Flatware Manufacturing,
Flatware. Except Precious (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).

[[Page 26664]]

Silverware, Plated Ware, and Silverware and Plated Ware
Stainless Steel Ware (Except Manufacturing.
Nonprecious Flatware and
Cutlery).
3915.................................... Jewelers' Findings and Jewelers' Material and Lapidary Work
Materials, and Lapidary Work. Manufacturing.
3931.................................... Musical Instruments............. Musical Instrument Manufacturing.
3942.................................... Dolls and Stuffed Toys.......... Doll and Stuffed Toy Manufacturing.
3944.................................... Games, Toys, and Children's
Vehicles, Except Dolls and
Bicycles:
Tricycles and................. Motorcycle, Bicycle, and Part
Manufacturing (pt) (Included in
Transportation Equipment
Manufacturing subsector).
Other......................... Game, Toy, and Children's Vehicle
Manufacturing.
3949.................................... Sporting and Athletic Goods, NEC Sporting and Athletic Good
Manufacturing.
3951.................................... Pens, Mechanical Pencils and Pen and Mechanical Pencil
Parts. Manufacturing.
[email protected] Lead Pencils, Crayons, and
Artists' Materials:
Drawing and India Ink......... Printing Ink Manufacturing (pt)
(Included in Chemical Product
Manufacturing subsector).
Metal Drafting Tables and Metal Office Furniture Manufacturing
Boards. (pt) (Included in Furniture
Manufacturing subsector).
Wood Drafting Tables and Wood Office Furniture Manufacturing
Boards. (pt) (Included in Furniture
Manufacturing subsector).
Other......................... Lead Pencil and Art Good
Manufacturing (pt).
3953.................................... Marking Devices................. Marking Device Manufacturing.
3955.................................... Carbon Paper and Inked Ribbons.. Carbon Paper and Inked Ribbon
Manufacturing.
3961.................................... Costume Jewelry and Costume Costume Jewelry and Novelty
Novelties, Except Precious Manufacturing (pt).
Metals.
3965.................................... Fasteners, Buttons, Needles, and Fastener, Button, Needle and Pin
Pins. Manufacturing.
3991.................................... Brooms and Brushes.............. Broom, Brush and Mop Manufacturing.
[email protected] Signs and Advertising
Specialties:
Flexographic Printing of Commercial Flexographic Printing
Advertising Specialties. (pt) (Included in Printing and
Related Support Activities
subsector).
Gravure Printing of Commercial Gravure Printing (pt)
Advertising Specialties. (Included in Printing and Related
Support Activities subsector).
Lithographic Printing of Commercial Lithographic Printing
Advertising Specialties. (pt) (Included in Printing and
Related Support Activities
subsector).
Screen Printing of Advertising Commercial Screen Printing (pt)
Specialties. (Included in Printing and Related
Support Activities subsector).
Other Printing of Advertising Other Commercial Printing (pt)
Specialties. (Included in Printing and Related
Support Activities subsector).
Electric Signs................ Electric Sign Manufacturing
(Included in Electrical Equipment,
Appliance and Component
Manufacturing subsector).
Metal Signs................... All Other Fabricated Metal Product
Manufacturing (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).
Wood Signs.................... Other Wood Product Manufacturing
(pt) (Included in Wood Product
Manufacturing, except Furniture
subsector).
3995.................................... Burial Caskets.................. Burial Casket Manufacturing.
3996.................................... Linoleum, Asphalted-Felt-Base, Resilient Floor Coverings
and Other Hard Surface Floor Manufacturing (pt) (Included in
Coverings, NEC. Rubber and Plastic Product
Manufacturing subsector).
[email protected] Manufacturing Industries, NEC:
Beauty and Barber Chairs...... Metal Office Furniture Manufacturing
(pt) (Included in Furniture
Manufacturing subsector).
Burnt Wood Articles........... Other Wood Product Manufacturing
(pt) (Included in Wood Product
Manufacturing, except Furniture
subsector).
Fur Bleaching, Currying, Leather and Hide Tanning and
Scraping, Tanning and Dyeing. Finishing Manufacturing (pt)
(Included in Leather and Allied
Product Manufacturing subsector).
Lamp Shades of Paper and Other Lighting Equipment
Textile. Manufacturing (pt) (Included in
Electrical Equipment, Appliance and
Component Manufacturing subsector).
Matches....................... Other Miscellaneous Chemical Product
Manufacturing (pt) (Included in
Chemical Manufacturing subsector).
Metal Products, such as Combs, All Other Fabricated Metal Product
Hair Curlers, etc. Manufacturing (pt) (Included in
Fabricated Metal Product
Manufacturing subsector).
Plastics Products, such as All Other Plastic Product
Combs, Hair Curlers, etc. Manufacturing (pt) (Included in
Rubber and Plastic Product
Manufacturing subsector).
Flexographic Printing Eyeglass Commercial Flexographic Printing
Frames for the Trade. (pt) (Included in Printing and
Related Support Activities
subsector).
Gravure Printing Eyeglass Commercial Gravure Printing (pt)
Frames for the Trade. (Included in Printing and Related
Support Activities subsector).

[[Page 26665]]

Lithographic Printing Eyeglass Commercial Lithographic Printing
Frames for the Trade. (pt) (Included in Printing and
Related Support Activities
subsector).
Screen Printing Eyeglass Commercial Screen Printing (pt)
Frames for the Trade. (Included in Printing and Related
Support Activities subsector).
Other Printing Eyeglass Frames Other Commercial Printing (pt)
for the Trade. (Included in Printing and Related
Support Activities subsector).
Tape Measures................. Hand and Edge Tool Manufacturing
(pt) (Included in Fabricated Metal
Product Manufacturing subsector).
Other......................... All Other Miscellaneous
Manufacturing (pt).
5995.................................... Optical Goods Stores:
Grinding of lenses to Eyeglass and Contact Lens
prescription only. Manufacturing.
Other......................... Optical Goods Stores (Included in
Retail sector).
8072.................................... Dental Laboratories............. Dental Laboratories.
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of'', means time series break has been created that is greater than 3% of
the 1992 value of shipments for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere
Classified.

Description of Changes to the U.S. System

Two complete industries were transferred out of 1987 Major Group
39, Miscellaneous Manufacturing Industries.
Signs and Advertising Specialties was transferred out as follows:
printing advertising specialties were transferred into the 1997
subsector Printing and Related Support Activities, in response to an
industry proposal; electric signs were transferred into the 1997
subsector, Electrical Equipment, Appliance and Component Manufacturing;
metal signs were transferred into the 1997 subsector, Fabricated Metal
Product Manufacturing; and wood signs were transferred into the 1997
subsector Wood Product Manufacturing, except Furniture.
Linoleum, Asphalted-Felt-Base, and Other Hard Surface Floor
Coverings, NEC was transferred into the 1997 subsector Rubber and
Plastic Product Manufacturing.
Seven complete industries were transferred into the 1997
Miscellaneous Manufacturing subsector.
Cotton Ginning was transferred from 1987 SIC Industry Group 072,
Crop Services, for international comparability. This is a nonexistent
activity for Canada.
The following five industries were transferred from the
discontinued 1987 SIC Major Group 38, Measuring, Analyzing, and
Controlling Instruments; Photographic, Medical and Optical Goods;
Watches and Clocks:

Laboratory Apparatus and Furniture Manufacturing (1987 SIC 3821).
Surgical and Medical Instrument Manufacturing (1987 SIC 3841).
Surgical Appliance and Supply Manufacturing (1987 SIC 3842).
Dental Equipment and Supply Manufacturing (1987 SIC 3843).
Ophthalmic Good Manufacturing (1987 SIC 3851).

Dental Laboratories were transferred from 1987 SIC Major Group 807,
Medical and Dental Laboratories.
Eyeglass and Contact Lens Manufacturing was transferred from part
of 1987 SIC 5995, Optical Goods Stores.
Fourteen activities were transferred out of 1987 Major Group 39,
Miscellaneous Manufacturing and are described more fully in their new
respective NAICS subsectors.
Nonprecious cutlery and flatware were transferred from 1987 SIC
3914, Silverware, Plated and Stainless Steel Ware, into Cutlery and
Flatware Manufacturing in the 1997 subsector Fabricated Metal Product
Manufacturing.
Metal tricycles were transferred from 1987 SIC 3944, Games, Toys
and Children's Vehicles, Except Dolls and Bicycles, into Motorcycle,
Bicycle, and Part Manufacturing in 1997 subsector Transportation
Equipment Manufacturing.
Drawing and india ink were transferred from 1987 SIC 3952, Lead
Pencils, Crayons, and Artists' Materials, into Printing Ink
Manufacturing in the 1997 subsector Chemical Product Manufacturing.
Drafting tables and boards were transferred from 1987 SIC 3952,
Lead Pencils, Crayons and Boards, with metal going into Metal Office
Furniture Manufacturing and wood going into Wood Office Furniture
Manufacturing in the 1997 subsector Furniture Manufacturing.
Beauty and barber chairs were transferred from 1987 SIC 3999,
Manufacturing Industries, NEC, into Metal Office Furniture
Manufacturing in the 1997 subsector Furniture Manufacturing.
Burnt wood articles were transferred from 1987 SIC Code 3999,
Manufacturing Industries, NEC, into Other Wood Product Manufacturing in
the 1997 subsector Wood Product Manufacturing, Except Furniture.
Fur bleaching, currying, scraping, tanning and dyeing were
transferred from 1987 SIC 3999, Manufacturing Industries, NEC, into
Allied and Hide Tanning and Finishing Manufacturing in the 1997
subsector Leather and Allied Product Manufacturing.
Lamp shades of paper and textile were transferred from 1987 SIC
3999, Manufacturing Industries, NEC, into Other Lighting Equipment
Manufacturing in the 1997 subsector Electrical Equipment, Appliance,
and Component Manufacturing.
Matches were transferred from 1987 SIC 3999, Manufacturing
Industries, NEC, into Other Miscellaneous Chemical Manufacturing in the
1997 subsector Chemical Product Manufacturing.
Metal products such as combs, hair curlers, etc. were transferred
from 1987 SIC 3999, Manufacturing Industries, NEC, into All Other
Fabricated Metal Product Manufacturing in the 1997 subsector Fabricated
Metal Product Manufacturing.
Plastic products such as combs, hair curlers, etc. were transferred
from 1987 SIC 3999, Manufacturing Industries, NEC, into All Other
Plastic Product Manufacturing in the 1997 subsector Rubber and Plastic
Product Manufacturing.
Printing eyeglass frames for the trade was transferred from 1987
SIC 3999, Manufacturing Industries, NEC, into the 1997 subsector
Printing and Related Support Activities and was distributed by method
of printing.
Tape measures were transferred from 1987 SIC 3999, Manufacturing
Industries, NEC, into Hand and Edge Tool Manufacturing in the 1997

[[Page 26666]]

subsector Fabricated Metal Product Manufacturing.
Teaching machine and flight simulator manufacturing was transferred
from 1987 SIC 3699, Electrical Machinery, Equipment, and Supplies, NEC,
into Other Commercial and Service Industry Machinery Manufacturing in
the 1997 subsector Machinery Manufacturing.
There were nine activities that transferred into the 1997 subsector
Miscellaneous Manufacturing.
Mops, floor and dust, were transferred into Broom, Brush, and Mop
Manufacturing from 1987 SIC 2392, Housefurnishings, Except Curtains and
Draperies, for international comparability. The U.S. moved to match
Canada and Mexico.
Wood and metal frames for mirrors and pictures were transferred
into All Other Miscellaneous Manufacturing from 1987 SIC 2499, Wood
Products, NEC, to reflect similarities in production, and for three
country comparability.
Blackboards were transferred into Lead Pencil and Art Good
Manufacturing from 1987 SIC 2531, Public Building and Related
Furniture, to achieve international comparability. The U.S. and Canada
moved to agree with Mexico.
Hospital beds were transferred into Surgical Appliance and Supply
Manufacturing from 1987 SIC 2599, Furniture and Fixtures, NEC, to
reflect similarities in production and achieve international
comparability.
Stamping of coins was transferred into Jewelry Manufacturing,
including Precious Metal from 1987 SIC 3469, Metal Stampings, NEC, for
international comparability.
Engraving and etching on precious jewelry, costume jewelry, and
silverware and plated ware was transferred into Jewelry Manufacturing,
including Precious Metal; Costume Jewelry and Novelty Manufacturing;
and Silverware and Plated Ware Manufacturing, respectively, from 1987
SIC 3479, Coating, Engraving, and Allied Services, NEC, for
international comparability. The U.S. and Mexico moved to agree with
Canada.
Trophies of nonprecious metals were transferred into Costume
Jewelry and Novelty Manufacturing from 1987 SIC 3499, Fabricated
Metals, NEC, to achieve international comparability. The U.S. moved to
agree with Canada and Mexico.
Pencil sharpeners, staplers and other office equipment were
transferred into Lead Pencil and Art Good Manufacturing from 1987 SIC
3579, Office Machines, NEC, for international comparability. The U.S.
and Canada moved to agree with Mexico.
Medical thermometers were transferred into Surgical Appliance and
Supply Manufacturing from 1987 SIC 3829, Measuring and Controlling
Devices, NEC, to achieve international comparability. The U.S. and
Canada moved to agree with Mexico.
Also there were several activities that were transferred within the
subsector for Miscellaneous Manufacturing. The number of miscellaneous
industries increased from 18 in 1987 to 24 in 1997. For time series
linkage, 14 of the 18 1987 industries are comparable within three
percent of the 1997 industries.

Part XX--Proposed New Industry Structure for Postal Service and
Couriers

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 31

This Document represents the proposed agreement on the structure of
the North American Industry Classification System (NAICS) for the
following industries:

Postal Service
Couriers

The detailed NAICS structure along with a brief description of the
structure is attached (Attachments 1 and 2). Each country agrees to
release a copy of the proposed NAICS structure to interested data
users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the
structure is made. Each country may add additional detailed industries,
below the 4-digit level of NAICS, as necessary to meet national needs,
so long as this additional detail aggregates to a 4-digit NAICS level
in order to ensure full comparability among the three countries. This
NAICS structure was presented and provisionally accepted at the NAICS
Committee meeting held on November 8 and November 9, 1995 in
Washington, D.C.

------------------------------------------------------------------------
Accepted Signature Date
------------------------------------------------------------------------
Canada.............................. /S/ Jacob Ryten........ 11/9/95
Mexico.............................. /S/ Enrique Ordaz...... 11/9/95
United States....................... /S/ Jack E. Triplett... 11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX Postal Service
XXX Postal Service
XXXX Postal Service
XX Couriers
XXX Couriers
XXXX Couriers
XXX Local Messengers and Local Delivery
XXXX Local Messengers and Local Delivery

Attachment 2--North American Industry Classification System

Draft Classification for:

Postal Services
Couriers

Representatives of the statistical agencies of Canada, Mexico, and
the United States agree to a draft industrial classification for these
industries.
The draft classification provides for the subsectors, Postal
Services and Couriers. These subsectors are further subdivided into
three industry groups, each with one industry. These subsectors will be
part of the Transportation sector of the classification.

A General Outline

The Postal Service and Couriers industries deliver letters and
small packages. These articles can be described as those that can be
handled by a single person without special equipment. This allows the
collection, pick-up and delivery operations to be done with limited
labor costs and minimal equipment. Sorting and transportation
activities, where necessary, are increasingly mechanized. The
restriction to small parcels distinguishes these establishments from
those in the transportation industries.
The Postal Service subsector includes the activities of the Post
Office and its subcontractors in delivering letters and small parcels,
normally without pick-up at the senders' location. This describes the
traditional activity of national Postal Services.
Establishments that perform these activities, such as the operation
of rural Post Offices on contract to the Postal Service, are included
in this subsector. This follows the industrial classification concept
that ownership should not determine the industry of an establishment,
but rather the activity undertaken. However, the delivery of bulk mail
on contract to the Postal Service is not included here, because it is
usually done by transportation establishments that carry other
customers' goods as well.
The Couriers subsector includes two types of activities. Couriers
deliver parcels between cities. The parcels must be no larger or
heavier than a single driver can handle without special equipment. The
Couriers industry includes the establishments that perform intercity
transportation as well as establishments that, under contract to them,
do the local pick-up and delivery.

[[Page 26667]]

The intent is to include the complete hub-and-spoke network in the
industry.
Where the Postal Service undertakes a courier activity, and it can
be delineated as one or more separate establishments, it is included in
the Couriers industry. This reflects the rule concerning ownership
referred to above. Canada expects to be able to delineate such
establishments, but Mexico and the United States do not.
The Local Messengers and Local Delivery industry undertakes
deliveries of small parcels within a single urban area. There are two
types of activity in practice. One is the delivery of letters and
documents, usually of a legal nature, often by bicycle or on foot. The
second is the delivery of small parcels, such as groceries or alcoholic
beverages, usually by small truck or van.

Relationship to ISIC

Each of the NAICS industries included in this subsector can be
assigned to Division 64, Post and Telecommunications of the current
International Standard Industrial Classification of all Economic
Activities (ISIC, Revision 3) of the United Nations without any
subdivision. The only difference is that ISIC includes separate courier
establishments of the Postal Service in the National Post Activities
class, whereas NAICS places them in the Couriers industry.

Some Changes to the National Classifications

For Canada, these subsectors include activities from several
industries in the current Transportation and Storage Industries
division (part of the NAICS Couriers subsector) and from the
Communication and Other Utilities Industries division (the Postal
Service subsector and the rest of the Couriers subsector). The amount
of detail of these NAICS subsectors is similar to that contained in the
Canadian classification.
For Mexico, the NAICS Postal Service and Couriers subsectors have
the same coverage as the Mexican classification's Postal Services (CMAP
720001) and Courier Services (CMAP 720002).
For the United States, the activities included in these subsectors
are currently in the Transportation and Public Utilities division, with
the exception of contract postal services, currently in the Services
Division (1987 SIC 7389, Business Services, Not Elsewhere Classified).
The Couriers industry combines the truck couriers included in 1987 SIC
4215, Courier Services, Except by Air, and air couriers included in
1987 SIC 4513, Air Courier Services.

Achievement of Objectives

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a
number of reasons 4-digit industries in the two NAICS industry
subsectors presented in Part XX, Section A--Attachment 1, contains less
detail than is currently in the U.S. SIC system and less detail than is
required to meet important analytical requirements in the U.S. The
three country agreement on NAICS envisions that each country may
develop national detailed industries below the NAICS industry level, so
long as the national detail can be aggregated to the NAICS
classification, thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the two
NAICS industry subsectors covered in Part XX of this notice. For cases
where no 5-digit detail is shown, the ECPC is proposing that the NAICS
4-digit industries will also represent the most detailed U.S.
industries.

[[Page 26668]]

Hub and Spoke Intercity Couriers (pt).
Delivery.
Local Delivery................ Local Messengers and Local Delivery.
4311.................................... United States Postal Service.... National Postal Service.
[email protected] Air Courier Services............ Couriers (pt).
7389.................................... Business Services, Not Elsewhere
Classified:
Post Office Contract Stations. Contract Postal Operations,
Excluding Bulk Mail Transportation
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of'', @ means time series break has been created that is greater than 3% of
the 1992 revenues for the 1987 industry. The abbreviation NEC is used for Not Elsewhere Classified.

Description of Changes to the U.S. System

There are two new industries, one in each of the proposed
subsectors. The Contract Postal Operations, Excluding Bulk Mail
Transportation industry was created to reflect operations similar to
the Postal Service in process but which provide for fewer of the
production equipment and facilities. This activity is included in 1987
SIC 7389, Business Services, Not Elsewhere Classified.
The Local Messengers and Local Delivery industry located in the
Couriers subsector identifies establishments involved in local pick up
and delivery and is created from part of 1987 SIC 4215, Courier
Services, Except by Air. These establishments are identified separately
from the Couriers industry based on production differences involving
equipment and the method of delivery. This industry includes
establishments that pick up and deliver by foot, bicycle, car and small
van. The Couriers industry, created from part of 1987 SIC 4215, Courier
Services, Except by Air, and part of 1987 SIC 4513, Air Courier
Services, includes establishments that are part of a hub and spoke
network by truck and air delivery.
Sally Katzen,
Administrator, Office of Information and Regulatory Affairs.
[FR Doc. 96-13039 Filed 5-24-96; 8:45 am]
BILLING CODE 3110-01-P

Visit the Official Version

Document Information

Effective Date:: 1/1/1997
Published:: 05/28/1996
Department:: Management and Budget Office
Entry Type:: Notice
Action:: Notice of solicitation of comments for North American Industry Classification System industries.
Document Number:: 96-13039
Dates:: To ensure consideration and response to all comments on the proposals set forth in this notice, comments must be in writing and should be submitted as soon as possible, but no later than July 29, 1996. This proposed industry system would become effective in the U.S. on January 1, 1997.
Pages:: 26558-26668 (111 pages)
PDF File:: 96-13039.pdf