[Federal Register Volume 63, Number 149 (Tuesday, August 4, 1998)]
[Notices]
[Pages 41696-41700]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20689]
[[Page 41695]]
_______________________________________________________________________
Part V
Office of Management and Budget
_______________________________________________________________________
1997 North American Industry Classification System (NAICS) Update and
Official U.S. Reference NAICS Implementation Manual Availability;
Notice
Federal Register / Vol. 63, No. 149 / Tuesday, August 4, 1998 /
Notices
[[Page 41696]]
OFFICE OF MANAGEMENT AND BUDGET
1997 North American Industry Classification System--1987 Standard
Industrial Classification Replacement
AGENCY: Office of Management and Budget, Executive Office of the
President.
ACTION: Notice of update to the North American Industry Classification
System (NAICS).
-----------------------------------------------------------------------
SUMMARY: This notice updates the structure and the concordance tables
of the North American Industry Classification System (NAICS) that were
published by the Office of Management and Budget in an April 9, 1997,
Federal Register notice and announces the availability of the official
U.S. reference manual for implementing NAICS United States in both
printed and electronic versions from the National Technical Information
Service. This update is the result of numerous meetings among Canada,
Mexico, and the United States that were held to complete the written
descriptions for NAICS and assign a list of 35,000 activity items to
the correct NAICS industry. The assignment of the activity items
resulted in some changes to the NAICS tables as published in the April
9, 1997, Federal Register notice. These changes are highlighted in the
Supplementary Information section of the notice.
NAICS is a new economic classification system that replaces the
1987 Standard Industrial Classification (SIC) for statistical purposes.
NAICS is a system for classifying establishments by type of economic
activity. Its purposes are: (1) to facilitate the collection,
tabulation, presentation, and analysis of data relating to
establishments, and (2) to promote uniformity and comparability in the
presentation and analysis of statistical data describing the economy.
NAICS will be used by Federal statistical agencies that collect or
publish data by industry. It is also expected to be widely used by
State agencies, trade associations, private businesses, and other
organizations.
The Instituto Nacional de Estadistica, Geografia e Informatica
(INEGI) of Mexico, Statistics Canada, and the United States Office of
Management and Budget (OMB), through its Economic Classification Policy
Committee (ECPC), have collaborated on NAICS to make the industrial
statistics produced in the three countries comparable. NAICS is the
first industry classification system developed in accordance with a
single principle of aggregation, the principle that producing units
that use similar production processes should be grouped together in the
classification. The fresh view of establishment data that this
restructuring will provide should engender insights into the
increasingly interrelated evolution of our economies. NAICS also
reflects in a much more explicit way the enormous changes in technology
and in the growth and diversification of services that have marked
recent decades. Industry statistics presented using NAICS will also be
comparable with statistics compiled according to the latest revision of
the United Nations' International Standard Industrial Classification
(ISIC, Revision 3) for some sixty high-level groupings.
For the three countries, NAICS will provide a consistent framework
for the collection, tabulation, presentation, and analysis of
industrial statistics used by government policy analysts, by academics
and researchers, by the business community, and by the public. However,
because of differing national economic and institutional structures as
well as limited resources and time for constructing NAICS, the NAICS
structure has not been made entirely comparable at the individual
industry level across all three countries. For some sectors and
subsectors, the statistical agencies of the three countries have agreed
to harmonize NAICS based on sectoral boundaries rather than on a
detailed industry structure. The sectors that are not comparable at the
detailed industry level are: utilities; construction; wholesale trade;
retail trade; finance and insurance; and public administration. The
subsectors that are not comparable at the detailed industry level are:
real estate; waste management and remediation services; as well as
other services including personal and laundry services, and religious,
grantmaking, civic, and professional and similar organizations.
Separate agreements providing for detailed industry comparability
between Canada and the United States were reached for the utilities;
retail trade; and finance and insurance sectors. To distinguish the
three countries' versions of NAICS, they are called NAICS Canada, NAICS
Mexico (SCIAN Mexico, in Spanish), and NAICS United States.
In developing NAICS United States, OMB has published a total of
eight previous Federal Register notices advising the public of the work
of the ECPC and seeking comment on that work. The March 31, 1993,
Federal Register notice (58 FR 16990-17004) announced OMB's intention
to revise the SIC for 1997, the establishment of the Economic
Classification Policy Committee, and the process for revising the SIC.
The July 26, 1994, Federal Register notice (59 FR 38092-38096) set
forth the concepts for the new system and the decision to develop NAICS
in cooperation with Statistics Canada and INEGI. That notice also
included a request for the public to submit recommendations for the
industries to be included in the new system. The deadline for
submitting proposals for new or revised industries was November 7,
1994.
After considering all proposals from the public, consulting with a
large number of U.S. data users and industry groups, and undertaking
extensive discussions with INEGI and Statistics Canada, an industrial
structure that would apply to all three North American countries was
developed as NAICS. A series of five Federal Register notices sought
comment on the structure of the system. These notices are described in
more detail in the Supplementary Information section below. The last
Federal Register notice, published on April 9, 1997, announced OMB's
decision to adopt NAICS and presented the final structure. This notice
adjusts that final structure as presented in the Supplementary
Information section below.
EFFECTIVE DATE: Federal statistical data published for reference years
beginning on or after January 1, 1997, will be published using the new
NAICS United States codes as modified by this notice. NAICS is
scheduled to go into effect for Federal statistical purposes for
reference year 1997 in Canada and the United States, and 1998 in
Mexico. Publication of the 1997 NAICS United States Manual is planned
for June 1998. Use of NAICS for nonstatistical purposes (e.g.,
administrative, regulatory, or taxation) will be determined by the
agency or agencies that have chosen to use the SIC for nonstatistical
purposes. Readers interested in the effective dates for the use of
NAICS for nonstatistical purposes should contact the relevant agency to
determine its plans, if any, for a transition from use of the SIC to
NAICS.
ADDRESSES: Please send correspondence about these updates to: Katherine
K. Wallman, Chief Statistician, Office of Management and Budget, 10201
New Executive Office Building, 725 17th Street, NW, Washington, DC
20503, telephone number: (202) 395-3093, FAX number: (202) 395-7245.
Electronic Availability and Correspondence: This document is
available on the Internet from the Census Bureau Internet site via WWW
browser, ftp, and E-mail. To obtain this document via WWW browser,
connect
[[Page 41697]]
to ``http://www.census.gov'' then select ``Subjects A to Z,'' then
select ``N,'' then select ``NAICS (North American Industry
Classification System).'' This WWW page contains previous NAICS United
States Federal Register notices and related documents as well.
To obtain this document via ftp, log into ftp.census.gov as
anonymous, and retrieve the files ``naicsfr9.pdf,''
``naicsfr9tbl1.pdf,'' and ``naicsfr9tbl2.pdf'' from the ``/pub/epcd/
naics'' directory. (That directory also contains previous NAICS United
States 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 naics.txt''.
Instructions for obtaining this and other NAICS United States documents
will be delivered as a message attachment.
Correspondence may be sent via Internet E-mail to OMB at
naics@a1.eop.gov (do not include any capital letters in the address).
FOR FURTHER INFORMATION CONTACT: Paul Bugg, 10201 New Executive Office
Bldg., Washington, D.C. 20503, E-mail address: pbugg@omb.eop.gov,
telephone number: (202) 395-3093, FAX number: (202) 395-7245. Inquiries
about the content of industries or requests for electronic copies of
the tables should be made to Carole Ambler, Chair, Economic
Classification Policy Committee, Bureau of the Census, Room 2633-3,
Washington, D.C. 20233, E-mail address: cambler@ccmail.census.gov,
telephone number: (301) 457-2668, FAX number: (301) 457-1343.
SUPPLEMENTARY INFORMATION:
NAICS Update
The structure of NAICS was developed in a series of meetings among
the three countries. Public proposals for individual industries from
all three countries were considered for acceptance if the proposed
industry was based on the production-oriented concept of NAICS.
As groups of subsectors of NAICS were completed and agreed upon by
the three countries, the ECPC published the proposed industries for
those subsectors for public comment in the Federal Register. Five
successive Federal Register notices were published asking for comment.
A first notice published in the Federal Register, July 26, 1995 (60 FR
38436-38452), requested comment on proposed industry structures for
petroleum and coal product manufacturing, chemical manufacturing, and
rubber and plastics manufacturing; for broadcasting and
telecommunications; and for food services and drinking places and
accommodations. A second Federal Register notice published on February
6, 1996 (61 FR 4524-4578), requested comment on proposed industry
structures for crop production, animal production, forestry and
logging; 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. A third Federal Register notice published on May 28,
1996 (61 FR 26558-26668), requested comment on proposed industry
structures for health and social assistance; educational services;
computers and electronics product manufacturing; furniture
manufacturing; printing and related support activities; professional,
technical and scientific services; performing arts, spectator sports
and related industries; museums, historical sites and similar
institutions; recreation, amusement and gambling; information; wood
product manufacturing, except furniture; rental and leasing; repair and
maintenance; management and support; transportation; mining; paper
manufacturing; nonmetallic minerals manufacturing; primary metal
manufacturing; miscellaneous manufacturing; and postal service and
couriers. A fourth Federal Register notice published on July 5, 1996
(61 FR 35384-35515), requested comment on proposed industry structures
for finance and insurance; wholesale trade; retail trade; construction;
utilities; waste management and remediation services; real estate;
lessors of other nonfinancial assets; personal and laundry services;
and religious, grant making, civic, and other membership organizations.
That notice also requested comments on the proposed hierarchy and
coding system for NAICS. Finally, a fifth Federal Register notice
published on November 5, 1996 (61 FR 57006-57183), announced the ECPC's
final recommendations to OMB for the complete structure of NAICS United
States, including the hierarchy and coding system, and asked for public
comments. Final comments were due on December 20, 1996. Changes
incorporated into the new system based on comments in response to the
November 5, 1996, notice were presented in a sixth Federal Register
notice containing OMB's final decisions, published on April 9, 1997 (62
FR 17288-17478).
Based on continuing meetings with Canada and Mexico, some changes
have been made to the NAICS structure that was published in the April
9, 1997, Federal Register notice. Most of these changes are the result
of an intensive review of 35,000 activity items compiled by the
statistical agencies of the three countries. As a result of that
review, both the structure of NAICS and some subsector and industry
titles have been changed to better describe the activity or to ensure
that the titles among the three countries are comparable. In a few
cases, activity items have been moved from one NAICS code (as published
in the April 9, 1997, Federal Register notice) to another. The title
changes and structural changes are shown below. Complete links between
the 1997 NAICS and the 1987 SIC incorporating these changes are now
shown in tables that are available on the Census Bureau NAICS web site
at http://www.census.gov/epcd/www/naicstab.htm>.
Title Changes
------------------------------------------------------------------------
NAICS code Original title New title
------------------------------------------------------------------------
2123................ Non-Metallic Mineral Nonmetallic Mineral
Mining and Quarrying. Mining and Quarrying.
21239............... Other Non-Metallic Other Nonmetallic
Mineral Mining and Mineral Mining and
Quarrying. Quarrying.
212399.............. All Other Non-Metallic All Other Nonmetallic
Mineral Mining. Mineral Mining.
213115.............. Support Activities for Support Activities for
Non-Metallic Minerals Nonmetallic Minerals
(except Fuels). (except Fuels).
311813.............. Frozen Bakery Product Frozen Cakes, Pies, and
Manufacturing. Other Pastries
Manufacturing.
311823.............. Pasta Manufacturing..... Dry Pasta Manufacturing.
315212.............. Women's and Girls' Cut Women's, Girls'', and
and Sew Apparel Infants' Cut and Sew
Contractors. Apparel Contractors.
32513............... Dye and Pigment Synthetic Dye and
Manufacturing. Pigment Manufacturing.
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325132.............. Organic Dye and Pigment Synthetic Organic Dye
Manufacturing. and Pigment
Manufacturing.
3255................ Paint, Coating, Adhesive Paint, Coating, and
and Sealant Adhesive Manufacturing.
Manufacturing.
32599............... All Other Chemical All Other Chemical
Product Manufacturing. Product and Preparation
Manufacturing.
325998.............. All Other Miscellaneous All Other Miscellaneous
Chemical Product Chemical Product and
Manufacturing. Preparation
Manufacturing.
327111.............. Vitreous China Plumbing Vitreous China Plumbing
Fixture and China Fixtures and China and
Earthenware Fittings Earthenware Bathroom
and Bathroom Accessories
Accessories Manufacturing.
Manufacturing.
3274................ Lime, Gypsum and Gypsum Lime and Gypsum Product
Product Manufacturing. Manufacturing.
32742............... Gypsum and Gypsum Gypsum Product
Product Manufacturing. Manufacturing.
33149............... Nonferrous Metals Nonferrous Metal (except
(except Copper and Copper and Aluminum)
Aluminum) Rolling, Rolling, Drawing,
Drawing, Extruding, and Extruding, and
Alloying. Alloying.
331521.............. Aluminum Die-Castings... Aluminum Die-Casting
Foundries.
331522.............. Nonferrous (except Nonferrous (except
Aluminum) Die-Casting. Aluminum) Die-Castings
Foundries.
331524.............. Aluminum Foundries...... Aluminum Foundries
(except Die-Casting).
331525.............. Copper Foundries........ Copper Foundries (except
Die-Casting).
331528.............. Other Nonferrous Other Nonferrous
Foundries. Foundries (except Die-
Casting).
33210............... Iron and Steel Pipes and Iron and Steel Pipe and
Tubes Manufacturing Tube Manufacturing from
from Purchased Steel. Purchased Steel.
332611.............. Steel Spring (except Spring (Heavy Gauge)
Wire) Manufacturing. Manufacturing.
332612.............. Wire Spring Spring (Light Gauge)
Manufacturing. Manufacturing.
33322............... Rubber and Plastics Plastics and Rubber
Industry Machinery Industry Machinery
Manufacturing. Manufacturing.
333414.............. Heating Equipment Heating Equipment
(except Electric and (except Warm Air
Warm Air Furnaces) Furnaces)
Manufacturing. Manufacturing.
333999.............. All Other General All Other Miscellaneous
Purpose Machinery General Purpose
Manufacturing. Machinery
Manufacturing.
334412.............. Printed Circuit Board Bare Printed Circuit
Manufacturing. Board Manufacturing.
334418.............. Printed Circuit/ Printed Circuit Assembly
Electronics Assembly (Electronic Assembly)
Manufacturing. Manufacturing.
335912.............. Dry and Wet Primary Primary Battery
Battery Manufacturing. Manufacturing.
33636............... Motor Vehicle Fabric Motor Vehicle Seating
Accessories and Seat and Interior Trim
Manufacturing. Manufacturing.
337214.............. Nonwood Office Furniture Office Furniture (except
Manufacturing. Wood) Manufacturing.
4222................ Drug, Drug Proprietaries Drugs and Druggists'
and Druggists' Sundries Sundries Wholesalers.
Wholesalers.
42221............... Drug, Drug Proprietaries Drugs and Druggists'
and Druggists' Sundries Sundries Wholesalers.
Wholesalers.
42233............... Women's, Children's, and Women's, Children's, and
Infants' and Infants' Clothing and
Accessories Wholesalers. Accessories
Wholesalers.
42272............... Petroleum and Petroleum Petroleum and Petroleum
Products (except Bulk Products Wholesalers
Stations and Terminals) (except Bulk Stations
Wholesalers. and Terminals).
493................. Warehousing and Storage Warehousing and Storage.
Facilities.
4931................ Warehousing and Storage Warehousing and Storage.
Facilities.
49311............... General Warehousing and General Warehousing and
Storage Facilities. Storage.
49312............... Refrigerated Warehousing Refrigerated Warehousing
and Storage Facilities. and Storage.
49313............... Farm Product Warehousing Farm Product Warehousing
and Storage Facilities. and Storage.
49319............... Other Warehousing and Other Warehousing and
Storage Facilities. Storage.
512131.............. Motion Picture Theaters, Motion Picture Theaters
Except Drive-Ins. (except Drive-Ins).
52231............... Mortgage and Other Loan Mortgage and Nonmortgage
Brokers. Loan Brokers.
523................. Securities, Commodity Securities, Commodity
Contracts and Other Contracts, and Other
Intermediation and Financial Investments
Related Activities. and Related Activities.
52314............... Commodity Brokerage..... Commodity Contracts
Brokerage.
524291.............. Claims Adjustors........ Claims Adjusting.
524292.............. Third Party Third Party
Administration for Administration of
Insurance and Pension Insurance and Pension
Funds. Funds.
525................. Funds, Trusts and Other Funds, Trusts, and Other
Financial Vehicles Financial Vehicles.
(U.S. only).
533................. Owners and Lessors of Lessors of Nonfinancial
Other Non-Financial Intangible Assets
Assets. (except Copyrighted
Works).
5331................ Owners and Lessors of Lessors of Nonfinancial
Other Non-Financial Intangible Assets
Assets. (except Copyrighted
Works).
53311............... Owners and Lessors of Lessors of Nonfinancial
Other Non-Financial Intangible Assets
Assets. (except Copyrighted
Works).
541614.............. Process, Physical, Process, Physical
Distribution, and Distribution, and
Logistics Consulting Logistics Consulting
Services. Services.
54171............... Research and Development Research and Development
in the Physical in the Physical,
Sciences and Engineering, and Life
Engineering Sciences. Sciences.
721214.............. Recreational and Recreational and
Vacation Camps. Vacation Camps (except
Campgrounds).
81221............... Funeral Homes........... Funeral Homes and
Funeral Services.
8123................ Laundry Services........ Drycleaning and Laundry
Services.
813................. Religious, Grantmaking, Religious, Grantmaking,
Civic, and Civic, Professional,
Professional, and and Similar
Similar Organizations. Organizations.
8139................ Business, Professional, Business, Professional,
Labor, Political, and Labor, Political, and
Other Organizations. Similar Organizations.
81399............... Other Similar Other Similar
Organizations. Organizations (except
Business, Professional,
Labor, and Political
Organizations).
921................. Executive, Legislative, Executive, Legislative,
Public Finance, and and Other General
General Government. Government Support.
9211................ Executive, Legislative, Executive, Legislative,
Public Finance, and and Other General
General Government. Government Support.
92113............... Public Finance.......... Public Finance
Activities.
[[Page 41699]]
92119............... All Other General Other General Government
Government. Support.
922................. Justice, Public Order, Justice, Public Order,
and Safety. and Safety Activities.
9221................ Justice, Public Order, Justice, Public Order,
and Safety. and Safety Activities.
92219............... All Other Justice, All other Justice,
Public Order, and Public Order, and
Safety. Safety Activities.
92313............... Administration of Administration of Human
Social, Human Resource Resource Programs
and Income Maintenance (except Education,
Programs. Public Health, and
Veteran's Affairs
Programs).
92411............... Air and Water Resource Administration of Air
and Solid Waste and Water Resource and
Management. Solid Waste Management
Programs.
92412............... Land, Mineral, Wildlife, Administration of
and Forest Conservation. Conservation Programs .
------------------------------------------------------------------------
Structure Changes
Manufacturing--NAICS U.S. Industry 315238, Women's and Girls' Cut
and Sew Other Outerwear Manufacturing, has been renumbered to 315239.
NAICS U.S. industry 322292, Surface-Coated Paper Board Manufacturing,
has been moved and renumbered to NAICS U.S. industry 322226, Surface-
Coated Paperboard Manufacturing. NAICS U.S. industry 322298, All Other
Converted Paper Product Manufacturing, has been renumbered 322299; the
title remains the same.
Professional, Scientific, and Technical Services--NAICS industry
54172, Research and Development in the Life Sciences, has been combined
with 54171, Research and Development in the Physical Sciences and
Engineering Sciences, and renamed Research and Development in the
Physical, Engineering, and Life Sciences. NAICS industry 54173,
Research and Development in the Social Sciences and Humanities, has
been renumbered 54172.
Other Services--NAICS industry 81239, Other Laundry Services, has
been combined with NAICS industry 81232, Drycleaning and Laundry
Services (except Coin-Operated). The following NAICS U.S. industries
are now included in NAICS industry 81232 and no longer shown
separately: 812321, Laundries, Family and Commercial; 812322,
Drycleaning Plants; 812391, Garment Pressing, and Agents for Laundries;
and 812399, All Other Laundry Services.
Availability of NAICS United States Manual
The official U.S. reference manual for implementing the new North
American Industry Classification System (NAICS) is now available in
both printed and electronic versions from the National Technical
Information Service (NTIS). The NAICS-United States Manual includes:
Definitions for each industry;
Tables showing correspondence between 1997 NAICS and 1987
SIC codes; and
An alphabetical index of types of business activities and
their NAICS codes.
A CD-ROM version of the Manual includes features not available in
print versions:
An easy-to-use yet powerful search option, including
access to more comprehensive index entries; and
NAICS-SIC and SIC-NAICS code comparison files that can be
imported into databases and spreadsheets.
NTIS is now accepting orders at 1-800-553-6847 or (703) 605-6000.
The NAICS-United States Manual is available in hardcover (PB98-127293,
$32.50), in softcover (PB98-136187, $28.50), and on CD-ROM (PB98-
502024, $45). A $5 handling fee is added to each total order. For more
information or to order online, visit the NTIS NAICS web site at
http://www.ntis.gov/naics>.
More information about the new system can be found at the Census
Bureau's NAICS World Wide Web site, http://www.census.gov/naics>. The
Census Bureau has also established a toll-free telephone line (1-888-
75NAICS) to help businesses and other users with the new system.
NAICS United States Implementation
The NAICS United States replacement of the SIC is effective January
1, 1997, for Federal statistical purposes. The first data to be
available on a NAICS United States basis will be from the 1997 Economic
Census and the 1997 Foreign Direct Investment Benchmark Survey that
will be published in 1999. For most programs, data will be introduced
over several years. Data series may not always be revised for years
before the respective program's implementation of NAICS United States.
INEGI, OMB, and Statistics Canada have put in place a process for
ensuring that the implementation of NAICS is comparable across all
three countries. Regularly scheduled meetings among the three countries
will ensure that there is a smooth transition to NAICS in all three
countries. In addition, the three countries plan to continually review
and update NAICS to ensure that new activities are promptly recognized
and to extend NAICS to the 5-digit industry level in those sectors
where agreement is now at only the sector, subsector, or industry group
level.
Time Series Continuity
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 point in time. The concordance creates a
crosswalk between the old and new classification systems. This link
between the 1987 U.S. SIC and the 1997 NAICS United States will be
developed by the statistical agencies in the U.S.
Nonstatistical Use of NAICS
NAICS was designed, as was the SIC before it, solely for
statistical purposes. Although it is likely that NAICS, like the SIC,
will also be used for various nonstatistical purposes (e.g.,
administrative, regulatory, or taxation), the requirements of
government agencies that choose to use NAICS for nonstatistical
purposes have played no role in its development.
Consequently, as has been the case with the SIC (Statistical Policy
Directive No. 8, Standard Industrial Classification of Establishments),
NAICS shall not be used in any administrative, regulatory, or tax
program unless the head of the agency administering that program has
first determined that the use of such industry definitions is
appropriate to the implementation of the program's objectives. If the
terms, ``North American Industry Classification System,'' ``NAICS,'' or
``NAICS United States'' are to be used in the operative text of any law
or regulation to define industry (or trade or commerce), language
similar to the following should
[[Page 41700]]
be used to assure sufficient flexibility: ``An industry or grouping of
industries shall mean a North American Industry Classification System
industry or grouping of industries as defined by the Office of
Management and Budget subject to such modifications with respect to
individual industries or groupings of industries as the Secretary
(Administrator) may determine to be appropriate for the purpose of this
Act (regulation).''
Donald R. Arbuckle,
Deputy Administrator and Acting Administrator, Office of Information
and Regulatory Affairs.
[FR Doc. 98-20689 Filed 8-3-98; 8:45 am]
BILLING CODE 3110-01-P
