26558 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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 establishmentbased 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

Estadı ́stica, Geografı ́a e Informatı ́ca

(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 productionoriented 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 ‘‘EconomyWide 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 Email 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
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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 nonmanufacturing 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

5-character

alphanumeric

system

6-character all

numeric

system

Manufacturing ............................................................................................................................................................ E, F, G 21, 22, 23

Food Manufacturing ............................................................................................................................................... E1 211

Animal Food Manufacturing ............................................................................................................................... E11 2111
26560 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

ILLUSTRATIVE PORTION OF THE NAICS STRUCTURE, SHOWING HYPOTHETICAL ALTERNATIVE CODING SYSTEMS—

Continued

5-character

alphanumeric

system

6-character all

numeric

system

Animal Food Manufacturing ............................................................................................................................ E111 21111

Dog and Cat Food Manufacturing .............................................................................................................. E1111 211111

Other Animal Food Manufacturing .............................................................................................................. E1112 211112

Grain and Oilseed Milling ................................................................................................................................... E12 2112

Flour Milling and Malt Manufacturing ............................................................................................................. E121 21121

Flour Milling ................................................................................................................................................. E1211 211211

Rice Milling .................................................................................................................................................. E1212 211212

Malt Manufacturing ...................................................................................................................................... E1213 211213

Starch and Vegetable Fats and Oils Manufacturing ...................................................................................... E122 21122

Soybean Processing ................................................................................................................................... E1221 211221

Wet Corn Milling .......................................................................................................................................... E1222 211222

Other Oilseed Processing ........................................................................................................................... E1223 211223

Edible Fats and Oils Manufacturing ............................................................................................................ E1224 211224

Breakfast Cereal Manufacturing ..................................................................................................................... E123 21123

Sugar and Confectionery Product Manufacturing .............................................................................................. E13 2113

(Classification continues) ......................................................................................................................... ... ...

Textile Mills ............................................................................................................................................................ E2 212

Fibre, Yarn, and Thread Mills ............................................................................................................................ E21 2121

Fiber, Yarn, and Thread Mills ......................................................................................................................... E211 21211

Yarn Spinning Mills ..................................................................................................................................... E2111 212111

Yarn Texturing, Throwing, and Twisting Mills ............................................................................................. E2112 212112

Thread Mills ................................................................................................................................................. E2113 212113

Fabric Mills ......................................................................................................................................................... E22 2122

Broadwoven Fabric Mills ................................................................................................................................ E221 21221

Narrow Fabric Mills and Schiffli Machine Embroideries ................................................................................. E222 21222

Narrow Fabric Mills ..................................................................................................................................... E2221 212221

Schiffli Machine Embroideries ..................................................................................................................... E2222 212222

Nonwoven Fabric Mills ................................................................................................................................... E223 21223

Knit Fabric Mills .............................................................................................................................................. E224 21224

Weft Knit Fabric Mills .................................................................................................................................. E2241 212241

Other Knit Fabric and Lace Mills ................................................................................................................ E2242 212242

(Classification continues) ............................................................................................................................ ... ...

Computer and Electronic Product Manufacturing .................................................................................................. F1 221

Computer and Peripheral Equipment Manufacturing ......................................................................................... F11 2211

Computer and Peripheral Equipment Manufacturing ..................................................................................... F111 22111

Electronic Computer Manufacturing ............................................................................................................ F1111 221111

Computer Storage Device Manufacturing ................................................................................................... F1112 221112

Computer Terminal Manufacturing ............................................................................................................. F1113 221113

Other Computer Peripheral Equipment Manufacturing .............................................................................. F1114 221114

Communication Equipment Manufacturing ........................................................................................................ F12 2212

Telephone Apparatus Manufacturing ............................................................................................................. F121 22121

Broadcast and Studio Equipment for Radio, TV, and.

Cable Manufacturing ....................................................................................................................................... F122 22122

Other Communication Equipment Manufacturing .......................................................................................... F123 22123

Audio and Video Equipment Manufacturing ...................................................................................................... F13 2213

(Classification continues) ............................................................................................................................ ... ...

Information ................................................................................................................................................................. J 71

Publishing ............................................................................................................................................................... J1 711

Newspaper, Periodical, Book and Database Publishing ................................................................................... J11 7111

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 keypunched 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 keypunching, compared with a 5-character

alphanumeric system. This is the
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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
26562 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

TABLE 1

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XX ........ Ambulatory Health Care Services:

XXX ...... Offices of Physicians:

XXXX ... Offices of Physicians:
26564 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 1—Continued

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XXXXX Offices of Physicians except Mental Health

Specialists.

N *8011 Offices and Clinics of Doctors of Medicine (except mental

health specialists).

*8031 Offices and Clinics of Doctors of Osteopathy (except mental

health specialists).

XXXXX Offices of Physicians, Mental Health Specialists.N *8011 Offices and Clinics of Doctors of Medicine (mental health 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 Practitioners, except

Physicians.

N *8049 Offices and Clinics of Health Practitioners, NEC (mental health

practitioners except physicians).

XXXX ... Offices of Physical, Occupational, and

Speech Therapists and Audiologists.

N *8049 Offices and Clinics of Health Practitioners, NEC (physical, occupational, speech therapists, and audiologists).

XXXX ... Offices of All Other Health Practitioners:

XXXXX Offices of Podiatrists ................................... E 8043 Offices and Clinics of Podiatrists.

XXXXX Miscellaneous Health Practitioners ............. N *8049 Offices and Clinics of Health 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 Facilities ................. N *8093 Specialty Outpatient 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 Freestanding

Emergency Centers.

N *8011 Offices and Clinics of Doctors of Medicine (surgical and emergency centers).

XXXXX All Other Outpatient Care Facilities ............ N *8093 Specialty Outpatient 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 Centers ........................ N *8071 Medical Laboratories (diagnostic 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 Services ............. N *8082 Home Health Care Services (except 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 Health Care Services.N *8099 Health and Allied Services, NEC (except blood and organ

banks).

XX ........ Hospitals:

XXX ...... General Medical and Surgical Hospitals:

XXXX ... General Medical and Surgical Hospitals ........ R 8062 General Medical and Surgical Hospitals.

*8069 Specialty Hospitals, Except Psychiatric (childrens’ hospitals).

XXX ...... Psychiatric and Substance Abuse Hospitals:

XXXX ... Psychiatric and Substance Abuse Hospitals R 8063 Psychiatric Hospitals

*8069 Specialty Hospitals, Except Psychiatric (substance abuse hospitals).

XXX ...... Specialty Hospitals, except Psychiatric and

Substance Abuse Hospitals:

XXXX ... Specialty Hospitals, except Psychiatric and

Substance Abuse Hospitals.

R *8069 Specialty Hospitals, Except Psychiatric (except childrens’ 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).
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26565

TABLE 1—Continued

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XXX ...... Mental Health, Mental Retardation, and Substance Abuse Facilities:

XXXX ... Mental Retardation Facilities .......................... N *8052 Intermediate Care Facilities (mental retardation facilities).

XXXX ... Mental Health and Substance Abuse Facilities.N *8361 Residential Care (mental health and substance abuse facilities).

XXX ...... Community Care Facilities for the Elderly:

XXXX ... Community Care Facilities for the Elderly:

XXXXX Continuing Care Retirement Communities ..... N *8051 Skilled Nursing Care Facilities (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 Facilities .................... N *8361 Residential Care (except mental 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 and Persons with

Disabilities.

N *8322 Individual and Family Social Services (services for the elderly

and disabled).

XXXX ... Other Individual and Family Services ............. N *8322 Individual and Family Social 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 Services ........... N *8322 Individual and Family Social Services (housing services except temporary shelter).

XXXX ... Emergency and Other Relief Services ........... N *8322 Individual and Family Social Services (emergency and relief

services).

XXX ...... Job Training and Vocational Rehabilitation

Services:

XXXX ... Job Training and Vocational Rehabilitation

Services.

E 8331 Job Training and Vocational Rehabilitation 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.

TABLE 2

1987 SIC code 1987 SIC description 1997 U.S. description

4119@ .............................. Local Passenger Transportation, NEC ................... Ambulance Services (pt.).

4522@ .............................. Air Transportation, Nonscheduled .......................... Ambulance Services (pt.).

8011@ .............................. Offices and Clinics of Doctors of Medicine:

Clinics of Physicians, Surgical and Emergency

Centers.

Ambulatory Surgical and Freestanding Emergency Centers.

HMO Medical Centers ......................................... HMO Medical Centers.

Offices of Physicians, Mental Health Specialists Offices of Physicians, Mental Health Specialists (pt.).

Other Offices of Physicians ................................. Offices of Physicians, Except Mental Health Specialists (pt.).

8021 ................................. Offices and Clinics of Dentists ................................ Offices of Dentists.

8031@ .............................. Offices and Clinics of Doctors of Osteopathy:

Offices of Doctors of Osteopathy, Except Mental

Health.

Offices of Physicians, Except Mental Health Specialists (pt.).

Offices of Doctors of Osteopathy, Mental Health

Specialists.

Offices of Physicians, Mental Health Specialists (pt.).

8041 ................................. Offices and Clinics of Chiropractors ....................... Offices of Chiropractors.

8042 ................................. Offices and Clinics of Optometrists ........................ Offices of Optometrists.

8043 ................................. Offices and Clinics of Podiatrists ............................ Offices of Podiatrists.

8049 ................................. Offices and Clinics of Health Practitioners, Not

Elsewhere Classified:

Mental Health Practitioners, Except Physicians Offices of Mental Health Practitioners, Except Physicians.
26566 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Offices of Physical, Occupational, and Speech

Therapists and Audiologists.

Offices of Physical, Occupational, and Speech Therapists and

Audiologists.

Other Offices of Heath Practitioners ................... Miscellaneous Health Practitioners.

8051@ .............................. Skilled Nursing Care Facilities:

Continuing Care Retirement Communities ......... Continuing Care Retirement Communities (pt.).

All Other Skilled Nursing Care Facilities ............. Nursing Care Facilities (pt.).

8052@ .............................. Intermediate Care Facilities:

Continuing Care Retirement Communities ......... Continuing Care Retirement Communities (pt.).

Mental Retardation Facilities ............................... Mental Retardation Facilities.

Other Intermediate Care Facilities ...................... Nursing Care Facilities (pt.).

8059@ .............................. Nursing and Personal Care Facilities, Not Elsewhere Classified:

Continuing Care Retirement Communities ......... Continuing Care Retirement Communities (pt.).

Other Nursing and Personal Care Facilities ....... Nursing Care Facilities (pt.).

8062@ .............................. General Medical and Surgical Hospitals ................ General Medical and Surgical Hospitals (pt.).

8063@ .............................. Psychiatric Hospitals ............................................... Psychiatric and Substance Abuse Hospitals (pt.).

8069@ .............................. Specialty Hospitals, Except Psychiatric:.

Children’s Hospitals ............................................. General Medical and Surgical Hospitals (pt.).

Psychiatric and Substance Abuse Hospitals ...... Psychiatric and Substance Abuse 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 Diagnostic Imaging Centers.Medical Laboratories.

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, Except Home

Health Agencies.

Other Home Health Care Services.

8092 ................................. Kidney Dialysis Centers .......................................... Kidney Dialysis Centers.

8093 ................................. Specialty Outpatient Facilities, Not Elsewhere

Classified:

Family Planning Centers ..................................... Family Planning Centers.

Outpatient Mental Health Facilities ..................... Outpatient Mental Health Facilities.

Other Specialty Outpatient Facilities ................... All Other Outpatient Care 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 Services ........................ All Other Miscellaneous Health Care Services.

8322 ................................. Individual and Family Social Services:

Child and Youth Services .................................... Child and Youth Services.

Community Food Services .................................. Community Food Services.

Community Housing Services, Except Temporary Shelters.Other Community Housing Services.

Emergency and Other Relief Services ................ Emergency and Other Relief Services.

Services for the Elderly and Persons with Disabilities.Services for the Elderly and Persons with Disabilities.

Temporary Shelter ............................................... Temporary Shelter.

Other Individual and Family Services ................. Other Individual and Family Services.

8331 ................................. Job Training and Vocational Rehabilitation Services.Job Training and Vocational 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 Abuse Facilities Mental Health and Substance Abuse 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:
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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)
26568 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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.

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

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

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

subsector Educational Services. This

subsector is subdivided into 7 industry

groups and 12 industries.

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 onsite 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 offsite.

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
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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 careeroriented 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, NonScheduled 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
26570 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XX ........ Educational Services:

XXX ...... Elementary and Secondary Schools:

XXXX ... Elementary and Secondary Schools .............. E 8211 Elementary and Secondary Schools.

XXX ...... Junior Colleges:

XXXX ... Junior Colleges ............................................... E 8222 Junior Colleges and Technical Institutes.

XXX ...... Colleges, Universities, and Professional Schools:

XXXX ... Colleges, Universities, and Professional

Schools.

E 8221 Colleges, Universities, and Professional Schools.

XXX ...... Business, Computer, and Management Training

Schools.

XXXX ... Business and Secretarial Schools .................. E 8244 Business and Secretarial Schools.

XXXX ... Computer Training Schools ............................ E 8243 Data Processing Schools.

XXXX ... Professional and Management Development

Training Schools.

N *8299 Schools and Educational Services, Not Elsewhere Classified

(professional and management development training).

XXX ...... Technical and Trade Schools:

XXXX ... Technical and Trade Schools:

XXXXX Cosmetology and Barber Schools .............. N *7231 Beauty Shops (beauty and cosmetology schools).

*7241 Barber Shops (barber colleges).

XXXXX Vocational and Technical Schools .............. N *8249 Vocational Schools, Not Elsewhere Classified (vo-tech

schools, except high schools).

XXXXX Aviation and Flight Training ........................ N *8249 Vocational Schools, Not Elsewhere 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 Schools ........... N *8249 Vocational Schools, Not Elsewhere 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 Tutoring .................. N *8299 Schools and Educational Services, Not Elsewhere Classified

(exam preparation and tutoring).

XXXXX Automobile Driving Schools ........................ N *8249 Vocational Schools, Not Elsewhere Classified (truck driving

schools).

*8299 Schools and Educational Services, Not Elsewhere Classified

(automobile driving instruction).

XXXXX All Other Miscellaneous Schools and Instruction.N *8299 Schools and Educational Services, 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 Services ........................ N *8299 Schools and Educational Services Not Elsewhere Classified

(except instruction).
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26571

TABLE 1—Continued

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

*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

7231@ .............................. 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.).

7911@ .............................. 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 Services, Not Elsewhere Classified.Athletic Instruction.

8211 ................................. Elementary and Secondary Schools ...................... Elementary and Secondary Schools.

8221 ................................. Colleges, Universities, and Professional Schools Colleges, Universities, and Professional Schools.

8222 ................................. Junior Colleges and Technical Schools ................. Junior Colleges.

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.

8249@ .............................. 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 Schools ................... Other Technical and Trade Schools.

8299@ .............................. Schools and Educational Services, Not Elsewhere

Classified:

Flying Instruction ................................................. Aviation and Flight Training (pt.).

Automobile Driving Instruction ............................ Automobile Driving Schools (pt.).

Curriculum Development, Educational ................ Educational Support Services (pt.).

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 Educational Services, Not

Elsewhere Classified.

All Other Miscellaneous Instruction.

8748@ .............................. Business Consulting Services, Not Elsewhere

Classified.

Educational Support Services (pt.).

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.
26572 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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.

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 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
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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.
26574 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

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. For example,

computer peripherals and electronic

components are both used in the

manufacture of computers; however,

components are separated from

peripherals in the hierarchy because the

production process used in the

manufacture of peripherals is more like
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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

1997 NAICS & U.S. description Status

code

1987

SIC

code

1987 SIC description

XX ........ Computer and Electronic Product Manufacturing:

XXX ...... Computer and Peripheral Equipment Manufacturing:

XXXX ... Computer and Peripheral Equipment Manufacturing:

XXXXX Electronic Computer Manufacturing ............ E 3571 Electronic Computers.

XXXXX Computer Storage Device Manufacturing ... E 3572 Computer Storage Devices.

XXXXX Computer Terminal Manufacturing .............. E 3575 Computer Terminals.

XXXXX Other Computer Peripheral Equipment

Manufacturing.

R 3577 Computer Peripheral Equipment, 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 Manufacturing ............. R *3661 Telephone and Telegraph Apparatus (except telephone transformers and external PC consumer modems).

XXXX ... Broadcast and Studio Equipment for Radio,

TV, and Cable Manufacturing.

R 3663 Radio and Television Broadcasting and Communication Equipment.

*3679 Electronic Components, NEC (communication equipment).

XXXX ... Other Communication Equipment Manufacturing.E 3669 Communications Equipment, NEC.

XXX ...... Audio and Video Equipment Manufacturing:

XXXX ... Audio and Video Equipment Manufacturing ... E 3651 Household Audio and Video Equipment.

XXX ...... Semiconductor and Electronic Component Manufacturing:

XXXX ... Semiconductor and Electronic Component

Manufacturing:

XXXXX Electron Tube Manufacturing ...................... E 3671 Electron Tubes.

XXXXX Printed Circuit Board Manufacturing ........... E 3672 Printed Circuit Boards.

XXXXX Semiconductor and Related Device Manufacturing.E 3674 Semiconductors and Related Devices.

XXXXX Electronic Capacitor Manufacturing ............ E 3675 Electronic Capacitors.

XXXXX Electronic Resistor Manufacturing .............. E 3676 Electronic Resistors.

XXXXX Electronic Coil, Transformer, and Other Inductor. Manufacturing.R *3661 Telephone and Telegraph Apparatus (telephone transformers).

3677 Electronic Coils, Transformers, and Other Inductors.

*3825 Instruments for Measuring and Testing of Electricity and Electrical Signals (portable instrument transformers).

XXXXX Electronic Connector Manufacturing ........... E 3678 Electronic Connectors.

XXXXX Other Electronic Component Manufacturing R *3661 Telephone and Telegraph Apparatus (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:
26576 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 1—Continued

1997 NAICS & U.S. description Status

code

1987

SIC

code

1987 SIC description

XXXXX Search, Detection, Navigation, Guidance,

Aeronautical, and Nautical System and

Instrument Manufacturing.

E 3812 Search, Detection, Navigation, Guidance, Aeronautical, and

Nautical Systems and Instruments.

XXXXX Automatic Control for Regulating Residential and Commercial Environment and

Appliance Manufacturing.

E 3822 Automatic Controls for Regulating Residential and Commercial

Environments and Appliances.

XXXXX Industrial Instrument for Measurement, Display, and Control of Process Variables,

and Related Products.

E 3823 Industrial Instruments for Measurement, Display, and Control

of Process Variables; and Related Products.

XXXXX Totalizing Fluid Meter and Counting Device

Manufacturing.

E 3824 Totalizing Fluid Meters and Counting Devices.

XXXXX Instruments for Measuring and Testing of

Electricity and Electrical Signal Manufacturing.

R *3825 Instruments for Measuring and Testing of Electricity and Electrical Signals (except portable instrument transformers).

XXXXX Analytical Instrument Manufacturing ........... E 3826 Laboratory Analytical Instruments.

XXXXX Other Measuring and Controlling Device

Manufacturing.

R *3829 Measuring and Controlling Devices, NEC (except medical

thermometers).

XXXXX Watch, Clock, and Part Manufacturing ....... R *3495 Wire Springs (clock and watch 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 and Related

Irradiation Apparatus.

E 3844 X-Ray Apparatus and Tubes and Related Irradiation Apparatus.

XXXXX Electromedical and Electrotherapeutic Apparatus.R *3842 Orthopedic, Prosthetic, and Surgical Appliances and Supplies

(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, Except Software, Tape, and Record Manufacturing.N *3652 Phonograph Records and Prerecorded Audio Tapes and Disks

(reproduction of all other media except video).

*7819 Services Allied to Motion Picture Production (Reproduction of

video).

XXXXX Magnetic and Optical Recording Media

Manufacturing.

E 3695 Magnetic and Optical Recording Media.

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.

TABLE 2

1987 SIC code 1987 SIC description 1997 U.S. description

3495 ................................. Wire Springs:

Clock and Watch Springs .................................... Watch, Clock and Part Manufacturing (pt).

Wire Springs, Except Clock and Watch Springs Wire Spring Manufacturing (Included in Fabricated Metal Product Manufacturing subsector).

3571 ................................. Electronic Computers .............................................. Electronic Computer Manufacturing.

3572 ................................. Computer Storage Devices ..................................... Computer Storage Device Manufacturing.

3575 ................................. Computer Terminals ............................................... Computer Terminal Manufacturing.

3577 ................................. Computer Peripheral Equipment, NEC ................... Other Computer Peripheral Equipment Manufacturing (pt).

3578@ .............................. Calculating and Accounting Machines, Except

Electronic Computers:

Point of Sales Terminals and Fund Transfer Devices.Other Computer Peripheral Equipment Manufacturing (pt).

Calculating and Accounting Machines, Except

Point of Sales Terminals and Fund Transfer

Devices.

Office Machinery Manufacturing (pt) (Included in Machinery

Manufacturing subsector).

3579@ .............................. Office Machines, NEC:

Pencil Sharpeners and Staplers ......................... Lead Pencils, Crayons and Artists’ Supplies (pt) (Included in

Miscellaneous Manufacturing subsector).

Timeclocks and Other Time Recording Devices Watch, Clock, and Part Manufacturing (pt).

Other .................................................................... Office Machinery Manufacturing (pt) (Included in Machinery

Manufacturing subsector).

3651 ................................. Household Audio and Video Equipment ................. Audio and Video Equipment Manufacturing.

3652@ .............................. Phonograph Records and Prerecorded Audio

Tapes and Disks:

Record Publishing ............................................... (Included in Information subsector).
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26577

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Reproduction of All Other Media Except Video Prerecorded Compact Disk, Tape and 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 Apparatus, Except

Telephone Transformers and Consumer External Modems.

Telephone Apparatus Manufacturing.

3663 ................................. Radio and Television Broadcasting and Communication Equipment.Broadcast and Studio Equipment for Radio, TV, and Cable (pt)

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 Devices .................... Semiconductor and Related Device Manufacturing.

3675 ................................. Electronic Capacitors .............................................. Electronic Capacitor Manufacturing.

3676 ................................. Electronic Resistors ................................................ Electronic Resistor Manufacturing.

3677 ................................. Electronic Coils, Transformers, and Other Inductors.Electronic Coil, Transformer, and 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 Chips for Motor Vehicles.Electrical Equipment for Internal Combustion Engine Manufacturing (pt) (Included in Transportation Equipment Manufacturing subsector).

Other Electronic Components Including Loaded

PC Boards.

Other Electronic Component Manufacturing (pt).

3695 ................................. Magnetic and Optical Recording Media ................. Magnetic and Optical Recording Media Manufacturing,

3699@ .............................. Electrical Machinery, Equipment, and Supplies,

NEC:

Bar Code Scanners ............................................. Other Computer Peripheral Equipment Manufacturing (pt).

Christmas Tree Lighting Sets and Electric Insect

Lamps.

Other Lighting Equipment 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, Equipment, and

Supplies.

Other Electrical Industrial Apparatus Manufacturing (pt) (Included in Electrical Equipment, Appliance, and Component

Manufacturing subsector).

3812 ................................. Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems and Instruments.Search, Detection, Navigation, Guidance, Aeronautical, and

Nautical System and Instrument Manufacturing.

3822 ................................. Automatic Controls for Regulating Residential and

Commercial Environment and Appliances.

Automatic Control for Regulating Residential and Commercial

Environment and Appliance Manufacturing.

3823 ................................. Industrial Instruments for Measurement, Display,

and Control of Process Variables; and Related

Products.

Industrial Instrument for Measurement, Display, and Control of

Process Variables; and Related Product Manufacturing.

3824 ................................. Totalizing Fluid Meters and Counting Devices ....... Totalizing Fluid Meter and Counting Device Manufacturing.

3825 ................................. Instruments for Measuring and Testing of Electricity and Electrical Signals:

Portable Instrument Transformers ...................... Electronic Coil, Transformer, and Other Inductor Manufacturing

(pt).

Except Portable Instrument Transformers .......... Instruments for Measuring and Testing of Electricity and Electrical Signal Manufacturing.

3826 ................................. Laboratory Analytical Instruments .......................... Analytical Instrument Manufacturing.

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.

3842@ .............................. 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 Related Irradiation Apparatus.X-Ray Apparatus and Tubes and Related Irradiation Apparatus.

3845 ................................. Electromedical and Electrotherapeutic Apparatus Electromedical and Electrotherapeutic Apparatus (pt.).

3873 ................................. Watches, Clocks, Clockwork Operated Devices

and Parts.

Watch, Clock, and Part Manufacturing (pt).

7372@ .............................. Prepackaged Software:

Reproduction of Software .................................... Reproduction of Software.
26578 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Other .................................................................... (Included in Information subsector).

7819@ .............................. 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

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 Mexico moved toward

the U.S. classification are not, of course,

listed in this section.

This is a new subsector for 1997.

Computer and Electronic Product

Manufacturing is composed of

industries from 1987 Major Group 35,

Industrial Commercial Machinery and

Computer Equipment; 1987 Major

Group 36, Electronic and Other

Electrical Equipment and Components,

Except Computer Equipment; and 1987

Major Group 38, Measuring, Analyzing

and Controlling Instruments;

Photographic, Medical and Optical

Goods; Watches and Clocks.

The following four complete

industries were transferred into this

subsector from 1987 Major Group 35,

Industrial Commercial Machinery and

Computer Equipment:

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 productionoriented industry.

Time clocks and other time recording

devices were transferred from 1987 SIC

3579, Office Machines, NEC, into

Watch, Clock and Part Manufacturing.
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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

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 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
26580 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

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.

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.

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

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XX ........ Furniture Manufacturing:

XXX ...... Furniture Manufacturing:

XXXX ... Mattress Manufacturing .................................. E 2515 Mattresses and Bedsprings.

XXXX ... Blind and Shade Manufacturing E 2591 Drapery Hardware and Blinds and Shades.

XXXX ... Wood Furniture Manufacturing:

XXXXX Wood Household Furniture Manufacturing,

Except Upholstered.

R *2426 Hardwood Dimension and Flooring Mills (wooden chair frames

and 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 Manufacturing R 2434 Wood Kitchen Cabinets.

*5712 Furniture Stores (custom wood cabinets).

XXXXX Upholstered Wood Household Furniture

Manufacturing

E 2512 Wood Household Furniture, Upholstered.

XXXXX Wood Office and Public Building Furniture

Manufacturing.

R *2426 Hardwood Dimension and Flooring Mills (office chair frames

and 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 Fixture, Partition,

Shelving, and Locker Manufacturing.

R *2541 Wood Office and Store Fixtures, Partitions, Shelving, and

Lockers (except custom architectural woodwork, millwork,

and fixtures).

XXXXX Custom Architectural Woodwork, Millwork,

and Fixtures.

N *2541 Wood Office and Store Fixtures, Partitions, Shelving, and

Lockers (architectural woodwork, millwork, and fixtures).

XXXX ... Metal Furniture Manufacturing:

XXXXX Metal Household Furniture Manufacturing R 2514 Metal Household Furniture.

*3499 Fabricated Metal Products, NEC (metal household frames and

furniture parts).

XXXXX Metal Office and Public Building Furniture

Manufacturing.

R *2522 Office Furniture, Except Wood (metal office furniture).

*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 Fixture, Partition,

Shelving and Locker Manufacturing.

R *2542 Office and Store Fixtures, Partitions, Shelving and Lockers,

Except Wood (metal office and store fixtures, partitions,

shelving, and lockers).

XXXX ... Other Furniture Manufacturing ........................ R *2499 Wood Products, NEC (laundry 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).
26582 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 1—Continued

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

*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 Seats ................. Wood Office and Public Building Furniture Manufacturing (pt).

Chair Frames for Nonupholstered Furniture

(Household).

Wood Household Furniture Manufacturing, Except Upholstered

(pt).

Chair Frames for Upholstered Furniture (Household).Upholstered Wood Household Furniture Manufacturing (pt).

Hardwood Dimension Except Flooring ................ Hardwood Dimension Mills (Included 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 and Cigar Boxes Other Wood Container Manufacturing (pt) (Included in the

Wood Product Manufacturing, Except Furniture subsector).

Wood Laundry Hampers ..................................... Wood Household Furniture Manufacturing, Except Upholstered

(pt).

Laundry Hampers Made from Rattan, Reed or

Willow.

Other Furniture Manufacturing (pt).

2511@ .............................. Wood Household Furniture, Except Upholstered ... Wood Household Furniture Manufacturing, Except Upholstered

(pt).

2512 ................................. Wood Household Furniture, Upholstered ............... Upholstered Wood Household Furniture Manufacturing.

2514 ................................. Metal Household Furniture ..................................... Metal Household Furniture Manufacturing (pt).

2515 ................................. Mattresses and Bedsprings .................................... Mattress Manufacturing.

2517@ .............................. Wood TV and, Radio Cabinets ............................... Wood Household Furniture Manufacturing, Except Upholstered

(pt).

2519@ .............................. Household Furniture, NEC ...................................... Other Furniture Manufacturing (pt).

2521 ................................. Wood Office Furniture ............................................. Wood Office and Public Building Furniture Manufacturing (pt).

2522@ .............................. Office Furniture, Except Wood:.

Metal Office Furniture .......................................... Metal Office Furniture Manufacturing (pt).

Office Furniture Not Made of Wood or Metal ......... Other Furniture Manufacturing (pt).

2531@ .............................. 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 Building ...................... Metal Office and Public Building Furniture Manufacturing (pt).

Wood Furniture for Public Building ..................... Wood Office and Public Building Furniture Manufacturing (pt).

Other Furniture Not Made of Wood or Metal for

Public Buildings.

Other Furniture Manufacturing (pt).

2541@ .............................. Wood Office and Store Fixtures, Partitions, Shelving, and Lockers:

Except Architectural Woodwork, Millwork and

Fixtures.

Wood Office and Store Fixture, Partition, Shelving and Locker

Manufacturing (pt.).

Custom Architectural Woodwork, Millwork and

Fixtures.

Custom Architectural Woodwork, Millwork, and Fixtures.

2542@ .............................. Partitions and Fixtures, Except Wood:

Metal Office and Store Fixtures, Partitions,

Shelving, and Lockers.

Metal Office and Store Fixture, Partition, Shelving and Locker

Manufacturing (pt).

Office and Store Fixtures, Partitions, Shelving,

and Lockers Not Made of Metal.

Other Furniture Manufacturing (pt).

2591 ................................. Drapery Hardware and Blinds and Shades ............ Blind and Shade Manufacturing.

2599@ .............................. Furniture and Fixtures, NEC:

Hospital Beds ...................................................... Orthopedic, Prosthetic and Surgical Appliance and Supply

Manufacturing (pt) (To Be Included in Miscellaneous Manufacturing subsector).
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26583

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Metal Industrial Work Benches and Stools, and

Other Metal Furniture Such As Ship Furniture.

Metal Office and Public Building Furniture Manufacturing (pt).

Wood Industrial Work Benches and Stools, and

Other Wood Furniture Such As Ship Furniture.

Wood Office and Public Building Furniture Manufacturing (pt).

Other Furniture and Fixtures ............................... Other Furniture Manufacturing (pt).

3499 ................................. Fabricated Metal Products, NEC:

Metal Frames and Furniture Parts, Household ... Metal Household Furniture Manufacturing (pt).

Metal Frames and Furniture Parts, Office .......... Metal Office and Public Building 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).

3952@ .............................. Lead Pencils, Crayons, and Artist’s Materials:

Metal Drafting Tables and Boards ...................... Metal Office and Public Building Furniture Manufacturing (pt).

Wood Drafting Tables and Boards ...................... Wood Office and Public Building 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, Scraping, Tanning and

Dyeing.

Leather and Hide Tanning and Finishing Manufacturing (pt) (Included in Leather and Allied Product Manufacturing subsector)

Lamp Shades of Paper and Textile .................... Other Lighting Equipment 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, Hair Curlers,

Etc..

All Other Fabricated Metal Product Manufacturing (pt) (Included in Fabricated Metal Product Manufacturing subsector).

Plastics Products, Such As Combs, Hair

Curlers, Etc..

All Other Plastic Product Manufacturing (pt) (Included in Rubber and Plastic Product Manufacturing subsector).

Flexographic Printing Eyeglass Frames for the

Trade.

Commercial Flexographic Printing (pt) (Included in Printing and

Related Support Activities subsector).

Gravure Printing Eyeglass Frames for the Trade Commercial Gravure Printing (pt) (Included in Printing and Related Support Activities subsector).

Lithographic Printing Eyeglass Frames for the

Trade.

Commercial Lithographic Printing (pt) (Included in Printing and

Related Support Activities subsector).

Screen Printing Eyeglass Frames for the Trade Commercial Screen Printing (pt) (Included in Printing and Related Support Activities subsector).

Other Printing Eyeglass Frames for the Trade ... Other Commercial Printing (pt) ( 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 Cabinets .......... Wood Household Furniture Manufacturing, Except Upholstered

(pt).

Custom Wood Cabinets ...................................... Wood Kitchen Cabinet Manufacturing (pt).

Other Than Custom Made Furniture ................... To Be Included in the Retail sector.

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.
26584 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

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

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. An evolving new

technology in the printing industry

involves the creation of a computer file

that directly drives printing equipment.

Thus, no printing plate is needed. This

technology, however, does not yet

account for a significant share of

production in any of the three countries,

and therefore has not been separated in

the classification.

The industries have high

specialization ratios, and they are

economically significant. While

disruptions to time series exist, they
26586 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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.

TABLE 1

1997 NAICS and U.S. description Status

code

1987

SIC

code

1987 SIC description

XX ........ Printing and Related Support Activities:

XXX ...... Printing and Related Support Activities:

XXXX ... Printing:

XXXXX Book Printing ............................................... E 2732 Book Printing.

XXXXX Commercial Lithographic Printing ............... R *2752 Commercial Printing, Lithographic (Except Quick Printing).

*2771 Greeting Cards (lithographic printing of greeting cards).

*2782 Blankbooks, Loose-leaf Binders and Devices (lithographic

printing of checkbooks).

*3993 Signs and Advertising Specialties (lithographic printing of advertising specialties).

*3999 Manufacturing Industries, NEC (lithographic printing of eyeglass frames for the trade).

XXXXX Commercial Gravure Printing ...................... R 2754 Commercial Printing, Gravure.

*2771 Greeting Cards (gravure printing of greeting cards).

*2782 Blankbooks, Loose-leaf Binders and Devices (gravure printing

of checkbooks).

*3993 Signs and Advertising Specialties (gravure printing of advertising specialties).

*3999 Manufacturing Industries, NEC (gravure printing of eyeglass

frames for the trade).

XXXXX Commercial Screen Printing ....................... N *2759 Commercial Printing, NEC (screen printing).

*2771 Greeting Cards (screen printing of greeting cards).

*2782 Blankbooks, Loose-leaf Binders and Devices (screen printing

of checkbooks).

*3993 Signs and Advertising Specialties (screen printing of advertising specialties).

*3999 Manufacturing Industries, NEC (screen printing of eyeglass

frames for the trade).

XXXXX Commercial Flexographic Printing .............. N *2759 Commercial Printing, NEC (flexographic printing).

*2771 Greeting Cards (flexographic printing of greeting cards).

*2782 Blankbooks, Loose-leaf Binders and Devices (flexographic

printing of checkbooks).

*3993 Signs and Advertising Specialties (flexographic printing of advertising specialties).

*3999 Manufacturing Industries, NEC (flexographic printing of eyeglass frames for the trade).

XXXXX Other Commercial Printing .......................... R *2759 Commercial Printing, NEC (other commercial printing).

*2771 Greeting Cards (other printing of greeting cards).

*2782 Blankbooks, Loose-leaf Binders and Devices (other printing of

checkbooks).

*3993 Signs and Advertising Specialties (other printing of advertising

specialties for the trade).

*3999 Manufacturing Industries, NEC (other printing of eyeglass

frames for the trade).

XXXXX Manifold Business Form Printing ................ E 2761 Manifold Business Forms.

XXXXX Bankbook, Loose-leaf Binder and Device ... R *2782 Blankbooks, Loose-leaf Binders and Devices (except checkbooks).

Manufacturing:

XXXXX Printing on Apparel.. ................................... N *2396 Automotive Trimmings, Apparel Findings, and Related Products (Printing and Embossing on Fabric Articles).

XXXX ... Support Activities for Printing:

XXXXX Tradebinding and Related Work ................. E 2789 Bookbinding and Related Work.

XXXXX Prepress Services ....................................... R 2791 Typesetting.
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26587

TABLE 1—Continued

1997 NAICS and U.S. description Status

code

1987

SIC

code

1987 SIC description

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 Publishing and Printing.Included in new Information sector.

2721 ................................. Periodicals: Publishing, or Publishing and Printing Included in new Information sector.

2731 ................................. Books: Publishing, or Publishing and Printing ........ Included in new Information sector.

2732 ................................. Book Printing ........................................................... Book Printing.

2741 ................................. Miscellaneous Publishing ........................................ Included in new Information sector.

2752 ................................. Commercial Printing, Lithographic .......................... Commercial Lithographic Printing (pt.).

Commercial Printing, Lithographic (Except Quick

Printing):

Quick Printing ...................................................... Included in Other Services sector.

2754 ................................. Commercial Printing, Gravure ................................ Commercial Gravure Printing (pt).

2759@ .............................. Commercial Printing, NEC:

Flexographic Printing ........................................... Commercial Screen Printing (pt).

Other Commercial Printing (pt)..

2761 ................................. Manifold Business Forms ....................................... Manifold Business Form Printing (pt).

2771@ .............................. Greeting Cards:

Lithographic Printing of Greeting Cards .............. Commercial Lithographic Printing (pt).

Gravure Printing of Greeting Cards .................... Commercial Gravure Printing (pt).

Flexographic Printing of Greeting Cards ............. Commercial Flexographic Printing (pt).

Screen Printing of Greeting Cards ...................... Commercial Screen Printing (pt).

Other Printing of Greeting Cards ........................ Other Commercial Printing (pt).

Publishing Greeting Cards .................................. Included in new Information Sector.

2782@ .............................. Blankbooks, Loose-leaf Binders and Devices:

Lithographic Printing of Checkbooks .................. Commercial Lithographic Printing (pt).

Gravure Printing of Checkbooks ......................... Commercial Gravure Printing (pt).

Flexographic Printing of Checkbooks ................. Commercial Flexographic Printing (pt).

Screen Printing of Checkbooks ........................... Commercial Screen Printing (pt).

Other Printing of Checkbooks ............................. Other Commercial Printing (pt).

Blankbooks, Loose-leaf Binders and Devices .... Blankbook, Loose-leaf Binder and Device Manufacturing.

2789 ................................. Bookbinding and Related Work .............................. Tradebinding and Related Work.

2791@ .............................. Typesetting .............................................................. Prepress Services (pt).

2796@ .............................. Platemaking and Related Services ......................... Prepress Services (pt).

3993@ .............................. Signs and Advertising Specialties:

Lithographic Printing of Advertising Specialties Commercial Lithographic Printing (pt).

Gravure Printing of Advertising Specialties ........ Commercial Gravure Printing (pt).

Flexographic Printing of Advertising Specialties Commercial Flexographic Printing (pt).

Screen Printing of Advertising Specialties .......... Commercial Screen Printing (pt).

Other Printing of Advertising Specialties ............ Other Commercial Printing (pt).

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).

3999@ .............................. Manufacturing Industries, NEC:

Lithographic Printing of Eyeglass Frames for the

Trade.

Commercial Lithographic Printing (pt).

Gravure Printing of Eyeglass Frames for the

Trade.

Commercial Gravure Printing (pt).

Flexographic Printing of Eyeglass Frames for

the Trade.

Commercial Flexographic Printing (pt).

Screen Printing of Eyeglass Frames for the

Trade.

Commercial Screen Printing (pt).

Other Printing of Eyeglass Frames for the Trade Other Commercial Printing (pt).

Other .................................................................... Other Miscellaneous Manufacturing (pt) (To Be Included in

Miscellaneous Manufacturing subsector).

2396@ .............................. Automotive Trimmings, Apparel Findings, and Related Products:
26588 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Printing and Embossing on Fabric Articles ......... Printing on Apparel.

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 productionoriented 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.

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 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
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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
26590 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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 knowledgebased 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
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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:
26592 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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.

TABLE 1

1997 NAICS and U.S. description Status

code

1987

SIC

code

1987 SIC descriptions

XX ........ Professional, Scientific and Technical Services:

XXX ...... Legal Services:

XXXX ... Offices of Lawyers .......................................... E 8111 Legal Services.

XXXX ... Offices of Notaries .......................................... L ............ Null Set for U.S.

XXXX ... Other Legal Services ...................................... N *7389 Business Services, NEC (process services, patent agents, notaries public, paralegal services).

XXX ...... Accounting, Tax Preparation, Bookkeeping and

Payroll Services:

XXXX ... Offices of Accountants:
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26593

TABLE 1—Continued

1997 NAICS and U.S. description Status

code

1987

SIC

code

1987 SIC descriptions

XXXXX Offices of Certified Public Accountants ....... N *8721 Accounting, Auditing, and Bookkeeping Services (certified

public accountants).

XXXXX Offices of Accountants, Except Certified .... N *8721 Accounting, Auditing, and 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 Services ............... N *8721 Accounting, Auditing, and 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 Services ........................... N *7389 Business Services, NEC (home and building inspection services).

XXXX ... Landscape Architecture Services ................... E 0781 Landscape Counseling and Planning.

XXXX ... Surveying and Mapping Services ................... N *7389 Business Services, NEC (map making services).

*8713 Surveying Services (except geophysical surveying).

XXXX ... Geophysical Surveying Services .................... N *8713 Surveying Services (geophysical 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 Services ....................... N *8748 Business Consulting Services, NEC (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 Programming Services E 7371 Computer Programming Services.

XXXXX Systems Design Services ........................... N 7373 Computer Integrated Systems Design.

*7379 Computer Related Services, NEC (computer systems consultants).

XXXXX Computer Facilities Management Services E 7376 Computer Facilities Management Services.

XXXXX Other Computer Systems Design and Related Services.R *7379 Computer Related Services, NEC (except computer systems

consultants).

XXX ...... Management, Scientific and Technical Consulting Services:

XXXX ... Management Consulting Services:

XXXXX Administrative and General Management

Consulting.

N *8742 Management Consulting Services (administrative management

and general management consulting).

XXXXX Human Resources Consulting .................... N *8742 Management Consulting Services (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, Distribution and Logistics Consulting.N *8742 Management Consulting Services (manufacturing management, physical distribution, and site location consulting).

XXXXX Other Management Consulting Services .... N *4731 Arrangement of Transportation of Freight and Cargo (tariff

consulting).

*8748 Business Consulting Services, NEC (safety consulting).

XXXX ... Environmental Consulting Services ................ N *8999 Services, NEC (environmental consultants).

XXXX ... Other Scientific and Technical Consulting

Services.

N *8748 Business Consulting Services, NEC (economic, radio, and

traffic consultants).

*8999 Services, NEC (nuclear consultants, geologists, physicists and

actuarial consulting).

XXX ...... Scientific Research and Development Services:

XXXX ... Research and Development in the Physical

and Engineering Sciences.

N *8731 Commercial Physical and Biological Research (physical and

engineering sciences).

*8733 Noncommercial Research Organizations (physical and engineering services).
26594 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 1—Continued

1997 NAICS and U.S. description Status

code

1987

SIC

code

1987 SIC descriptions

XXXX ... Research and Development in the Life

Sciences.

N *8731 Commercial Physical and Biological Research (life sciences).

*8733 Noncommercial Research Organizations (life sciences).

XXXX ... Research and Development in the Social

Sciences and Humanities.

N *8732 Commercial Economic, Sociological, and Educational 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 Distributors ..................... N *7319 Advertising, NEC (advertising materials distributor).

XXXX ... Other Services Related to Advertising ........... N *7319 Advertising, NEC (except media 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 Opinion Polling N *8732 Commercial Economic, Sociological, and Educational Research (market research and opinion research).

XXXX ... Photography Services:

XXXXX Photography Studios, Portrait ..................... E 7221 Photographic Studios, Portrait.

XXXXX Commercial Photography ............................ R 7335 Commercial Photography.

*8099 Health and Allied Services, NEC (medical photography).

XXXX ... Translation and Interpretation Services .......... N *7389 Business Services, NEC (translation and interpretation services).

XXXX ... Veterinary Services ......................................... E 0741 Veterinary Services for Livestock.

*0742 Veterinary Services for Animal Specialties

XXXX ... All Other Professional, Scientific and Technical Services..N 7389 Business Services, NEC (appraisers, except insurance 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.

TABLE 2

1987 SIC code 1987 SIC description 1997 U.S. description

0741 ................................. Veterinary Services for Livestock ........................... Veterinary Services (pt.).

0742 ................................. Veterinary Services for Animal Specialties ............. Veterinary Services (pt.).

0781 ................................. Landscape Counseling and Planning ..................... Landscape Architecture Services.

4731 ................................. Arrangement of Transportation of Freight and

Cargo:

Tariff Consulting .................................................. Other Management Consulting Services (pt.).

5199 ................................. Nondurable Goods, NEC:

Advertising Specialities Goods Distributors ........ Other Services Related to Advertising (pt.).

7221 ................................. Photographic Studios, Portrait ................................ Photographic Studios, Portrait.

7291 ................................. Tax Return Preparation Services ........................... Tax Preparation Services.

7311 ................................. Advertising Agencies .............................................. Advertising Agencies.

7312 ................................. Outdoor Advertising Services ................................. Display Advertising (pt.).

7313 ................................. Radio, Television, and Publishers’ Advertising

Representatives.

Media Representatives.

7319@ .............................. Advertising, NEC:

Media Buying Services ........................................ Media Buying Agencies.

Display Advertising, Except Outdoor .................. Display Advertising (pt.).

Advertising Materials Distributor ......................... Advertising Material Distributors.

Other .................................................................... Other Services Related to Advertising (pt.).

7331 ................................. Direct Mail Advertising Services ............................. Direct Mail Advertising.

7335 ................................. Commercial Photography ....................................... Commercial Photography (pt.).

7336 ................................. Commercial Art and Graphic Design ...................... Graphic Design Services (pt.).

7361 ................................. Employment Agencies:

Executive Placement Services ............................ Human Resources Consulting (pt.).

7371 ................................. Computer Programming Services ........................... Custom Computer Programming Services.

7373 ................................. Computer Integrated Systems Design .................... Systems Design Services (pt.).

7376 ................................. Computer Facilities Management Services ............ Computer Facilities Management Services.
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26595

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

7379 ................................. Computer Related Services, NEC:

Computer Systems Consultants .......................... Systems Design Services (pt.).

Except Computer Systems Consultants ............. Other Computer Systems Design and Related Services.

7389@ .............................. Business Services, Not Elsewhere Classified:

Process Services, Patent Agents, Notaries Public and Paralegal Services.Other Legal 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 Design Services All Other Design Services.

Translation and Interpretation Services .............. Translation and Interpretation Services.

Home and Building Inspection Services ............. Building Inspection Services.

Appraisers, Except Insurance and Real Estate,

Miscellaneous Professional, Scientific, and

Technical Services.

All Other 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.

8721@ .............................. Accounting, Auditing, and Bookkeeping Services:

Certified Public Accountants ............................... Offices of Certified Public Accountants.

Accountants, Except Certified Public Accountants.Offices of Accountants, except Certified.

Payroll Services ................................................... Payroll Services.

8731@ .............................. Commercial Physical and Biological Research:

Physical and Engineering Sciences .................... Research and Development in the Physical and Engineering

Sciences (pt.).

Life Sciences ....................................................... Research and Development in the Life Sciences (pt).

8732@ .............................. Commercial Economic, Sociological, and Educational Research:

Social Sciences and Humanities ......................... Research and Development in the Social Sciences and Humanities (pt.).

Market Research and Opinion Research ............ Market Research and Public Opinion Polling.

8733@ .............................. Noncommercial Research Organizations:

Physical and Engineering Services ..................... Research and Development in the 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.

8742@ .............................. Management Consulting Services:

Administrative Management and General Management Consulting.Administrative and General Management Consulting.

Human Resources and Personnel Management

Consulting.

Human Resources Consulting (pt.).

Marketing Consulting ........................................... Marketing Consulting.

Manufacturing Management, Physical Distribution, and Site Location Consulting.Process, Physical, Distribution, and Logistics Consulting.

8743 ................................. Public Relations Services ....................................... Public Relations Services.

8748@ .............................. Business Consulting Services, Not Elsewhere

Classified:

Planners of Land Use ......................................... Land Use Planners Services.

Safety Consulting ................................................ Other Management Consulting Services.

Economic Consultants, Radio Consultants, Traffic Consultants.Other Scientific and Technical Consulting Services (pt.).

8999@ .............................. Services, NEC:

Nuclear Consultants, Consulting Geologists,

Consulting Physicists, and Actuarial Consulting.

Other Scientific and Technical Consulting Services (pt.).

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.
26596 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

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

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 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
26598 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

1997 NAICS and U.S. description Status

code

1987

SIC

code

1987 SIC description

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 Companies ................. N *7929 Bands, Orchestras, Actors, and 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 and Similar Events

with Facilities.

N *6512 Operators of Nonresidential Buildings (stadium and arena

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 and Similar Events

without Facilities.

N *7922 Theatrical Producers (except Motion Pictures) and 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 Artists, Athletes,

and Other Entertainers.

N *7389 Business Services, NEC (agents and brokers for authors and

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, Writers, and Performers N *7819 Services Allied to Motion Picture 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).
26600 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 1—Continued

1997 NAICS and U.S. description Status

code

1987

SIC

code

1987 SIC description

XXXX ... Botanical and Zoological Gardens ................. R *8422 Arboreta and Botanical and Zoological Gardens (except nature

parks and reserves).

XXXX ... Nature Parks and Similar Institutions ............. N *7999 Amusement and Recreation 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 Fitness Centers ...... N 7991 Physical Fitness Facilities.

*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 Other Coin Operated Amusement Devices.R *7993 Coin-Operated Amusement Devices (except slot machine operators).

XXX ...... Gambling Industries:

XXXX ... Casinos, except Hotel Casinos ....................... N *7999 Amusement and Recreation 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 Amusement Services N *7911 Dance Studios, Schools, and Halls (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.

TABLE 2

1987 SIC code 1987 SIC description 1997 U.S. description

4493 ................................. Marinas ................................................................... Marinas.

5812@ .............................. Eating Places (Dinner theatres) .............................. Theater Companies (pt.).

6512@ .............................. Operators of Nonresidential Buildings:

Stadium and Arena Owners ................................ Promoters of Arts, Sports and Similar Events with Facilities

(pt.).

7389@ .............................. Business Services, NEC:

Agents and Brokers for Authors and Artists ....... Agents and Managers for Artists, Athletes, and Other Entertainers (pt.).

Other .................................................................... (Has been distributed among other service related subsectors).

7819@ .............................. Services Allied to Motion Picture Production:.

Film Directors and Related Motion Picture Production Services, Independent.Independent Artists, Writers, and Performers (pt.).

7911@ .............................. Dance Studios, Schools and Halls:

Ballroom and Dance Hall Operations ................. Other Recreation and Amusement Services (pt.).

Instruction Studios and Schools, Professional

Dancing Schools.

Fine Arts Schools (pt.) (Included in Educational Services subsector).

7922@ .............................. Theatrical Producers (Except Motion Picture) and

Miscellaneous Theatrical Services:

Theater and Opera Companies .......................... Theater Companies (pt.).

Theatrical Agents ................................................ Agents and Managers for Artists, Athletes and Other Entertainers (pt.).

Ballet and Dance Companies ............................. Dance Companies.

Theater Operators ............................................... Promoters of Arts, Sports, and Similar Events with Facilities

(pt.).
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26601

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Theatrical Promoters ........................................... Promoters of Arts, Sports, and Similar Events without Facilities

(pt.).

Theatrical Agents ................................................ Agents and Managers for Artists, Athletes, and Other Entertainers (pt.).

7929@ .............................. Bands, Orchestras, Actors, and Other Entertainers

and Entertainment Groups:

Musical Groups and Artists, Orchestras ............. Musical Groups and Artists.

Actors and Actresses .......................................... Independent Artists, Writers, and Performers (pt.).

Except Musical Groups and Artists, Actors and

Actresses:.

Other Performing Arts Companies (pt.).

7933 ................................. Bowling Centers ...................................................... Bowling Centers.

7941@ .............................. 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 Operators, Sports

Promoters, and Agents.

Other Spectator Sports (pt.).

7948@ .............................. Racing, Including Track Operations:

Racetracks ........................................................... Race Tracks.

Racing, except Track Operators ......................... Other Spectator Sports (pt.).

7991@ .............................. Physical Fitness Facilities ....................................... Recreational, Sports and Fitness Centers (pt.).

7992@ .............................. Public Golf Courses ................................................ Golf Courses (pt.).

7993@ .............................. Coin Operated Amusement Devices:

Except Gambling (Slot Machine) Operators ....... Amusement Arcades and Other Coin Operated Amusement

Devices.

Gambling (Slot Machine) Operators ................... Other Gambling Industries (pt.).

7996 ................................. Amusement Parks ................................................... Amusement and Theme Parks.

7997@ .............................. Membership Sports and Recreation Clubs:

Golf Clubs ............................................................ Golf Courses (pt.).

Recreation Clubs with Facilities .......................... Recreational Sports and Fitness Centers (pt.).

Recreation Clubs Without Facilities .................... Other Recreation and Amusement Services (pt.).

7999@ .............................. Amusement and Recreation Services, NEC:

Circus Companies ............................................... Other Performing Arts Companies (pt.).

Professional Athletes ........................................... Other Spectator Sports (pt.).

Skiing Facilities .................................................... Skiing Facilities.

Nonmembership Recreation Facilities ................ Recreation Sports and Fitness Centers (pt.).

Casinos, except Hotel Casinos ........................... Casinos, except Hotel Casinos.

Lottery, Bingo, Bookie and Other Gaming Operations.Other Gambling Industries (pt.).

Caverns and Miscellaneous Commercial Parks Nature Parks and Similar 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, Land .................... Scenic and Sightseeing Transportation, Land (Included in Scenic and Sightseeing Transportation subsector).

Scenic Transport Operations, Water ................... Scenic and Sightseeing Transportation, Water (Included in

Scenic and Sightseeing Transportation subsector.

Amusement and Recreation Services, NEC (except circuses, professional athletes, caverns,

and other commercial parks, skiing facilities,

casinos and other gambling operations,

amusement and recreation facilities).

Other Recreation and Amusement Services (pt.).

8412 ................................. Museums and Art Galleries:

Museums ............................................................. Museums.

Historical and Heritage Sites ............................... Historical Sites.

8422 ................................. Arboreta and Botanical or Zoological Gardens:

Botanical and Zoological Gardens ...................... Botanical and Zoological Gardens.

Nature Parks and Reserves ................................ Nature Parks and Similar Institutions (pt.).

8999 ................................. Services, Not Elsewhere Classified:

Authors, Artists, and Related Technical Services, Independent.Independent Artists, Writers, and Performers (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. The abbreviation NEC is used for Not Elsewhere Classified.
26602 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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 CoinOperated 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
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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 PostProduction 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.
26604 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

The distribution modes for

information commodities may either

eliminate the necessity for traditional

manufacture, or reverse the

conventional order of manufacturedistribute: 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
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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
26606 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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, prerecorded 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 Postproduction 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.
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26607

TABLE 1

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

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 Production ............. E 7812 Motion Picture and Video Tape Production.

XXXX ... Motion Picture and Video Distribution ............ E *7822 Motion Picture and Video Tape Distribution (except video tape

and cassette wholesalers).

XXXX ... Teleproduction and Other Post-Production

Services.

N *7819 Services Allied to Motion Picture Production (teleproduction

and post-production services).

XXXX ... Motion Picture and Video Exhibition:

XXXXX Motion Picture Theaters, except Drive-Ins E 7832 Motion Picture Theaters, Except Drive-In.

XXXXX Drive-In Motion Picture Theaters ................ E 7833 Drive-In Motion Picture Theaters.

XXXX ... Other Motion Picture and Video Industries .... N *7819 Services Allied to Motion Picture 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 Companies ....................... N *6794 Patent Owners and Lessors (music royalties, sheet and

record).

XXXX ... Integrated Record Companies ........................ N *3652 Phonograph Records and 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 Industries ................. N *7389 Business Services, NEC (audio 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 Distribution ..................... N *4841 Cable and Other Pay Television Services (except cable networks).

XXX ...... Telecommunications:

XXXX ... Wired Telecommunications Carriers ............... N *4813 Telephone Communications, Except 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 Wireless Telecommunications.N *4812 Radiotelephone Communications (cellular carriers).

*4899 Communications Services, NEC (radio dispatch).

XXXX ... Telecommunications Resellers ....................... N *4812 Radiotelephone Communications (paging and cellular resellers).

*4813 Telephone Communications, Except Radiotelephone (resellers).

XXXX ... Satellite Telecommunications ......................... N *4899 Communications Services, NEC (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 Services ...................... E 7375 Information Retrieval Services.
26608 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 1—Continued

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XXXXX All Other Information Services .................... N *8999 Services, NEC (miscellaneous information providers).

XXX ...... Data and Transaction Processing:

XXXX ... Data and Transaction Processing .................. E 7374 Computer Processing and Data 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 Publishing and Printing.Newspaper Publishing.

2721 ................................. Periodicals: Publishing, or Publishing and Printing Periodical Publishing.

2731 ................................. Books: Publishing, or Publishing and Printing ........ Book Publishing.

2741@ .............................. Miscellaneous Publishing:

Database Publishing ........................................... Database Publishing.

Miscellaneous Publishing, Except Database ...... All Other Publishing.

2771 ................................. Greeting Cards ........................................................ Greeting Card Publishing.

4812@ .............................. Radiotelephone Communications:

Paging Carriers ................................................... Paging.

Cellular Carriers .................................................. Cellular and Other Wireless Telecommunications

Paging and Cellular Resellers ................................ Telecommunications Resellers (pt.).

4813@ .............................. Telephone Communications, Except Radiotelephone:

Except Resellers ................................................. Wired Telecommunications Carriers (pt.).

Resellers .............................................................. Telecommunications Resellers (pt.).

4822@ .............................. Telegraph and Other Message Communications ... Wired Telecommunications Carriers (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 Satellite ................... Other Telecommunications.

7372 ................................. Prepackaged Software:

Software Publishing ............................................. Software Publishing.

Reproduction of Software .................................... Reproduction of Software.

7374 ................................. Computer Processing and Data Preparation and

Processing Services.

Data and Transaction Processing.

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 Production ............ Motion Picture and Video Production.

7819 ................................. Services Allied to Motion Picture Production:

Teleproduction and Post-Production Services .... Teleproduction and Other Post-Production Services.

Casting Bureaus .................................................. Employment Agencies (pt.) (Included in Management, Employment, Administrative and Support Services subsector).

Wardrobe Rental (Motion Pictures) ..................... Rental and Leasing of Formal Wear and Costumes (pt.) (Included in Rental and Leasing subsector).

Rental of Motion Picture Equipment ................... Rental and Leasing of Machinery and Equipment (pt.) (Included in Rental and Leasing subsector).

Talent Payment Services .................................... Payroll Services (Included in Professional Scientific and Technical Services subsector).

Except Casting Bureaus, Wardrobe and Equipment Rental, Teleproduction and Other PostProduction Services.Other Motion Picture and Video Services (pt.).

7822 ................................. Motion Picture and Video Tape Distribution:

Distribution, Except Video Tape and Cassette

Wholesalers.

Motion Picture and Video Distribution.

Video Tape and Cassette Wholesalers .............. (Included in Wholesale Trade Sector).

7829 ................................. Services Allied to Motion Picture Distribution ......... Other Motion Picture and Video Services (pt.).
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26609

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

7832 ................................. Motion Picture Theaters, Except Drive-Ins ............. Motion Picture Theaters, Except Drive-In.

7833 ................................. Drive-In Motion Picture Theaters ............................ Drive-In Motion Picture Theaters.

7922@ .............................. Theatrical Producers (Except Motion Picture) and

Miscellaneous Theatrical Services:

Producers of Radio Programs: ............................ Other Sound Recording Industries (pt.).

8231 ................................. Libraries .................................................................. Libraries and Archives.

6794@ .............................. Patent Owners and Lessors:

Record Production Companies ........................... Record Production Companies.

Music Publishing ................................................. Music Publishing.

3652@ .............................. Phonograph Records and Prerecorded Audio

Tapes and Disk.

Integrated Record Companies, Except Duplication Only.Integrated Record Companies.

8999@ .............................. Services, Not Elsewhere Classified.

Miscellaneous Information Providers .................. All Other Information Services.

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 PostProduction 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 OnLine 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
26610 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

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.

The industries have high

specialization ratios, and they are

economically significant. The NAICS

industries are large aggregations, but

this was necessitated by the

considerations discussed above under

Limitations and Constraints of the

Classification. The classification is

suitable for sampling, data-publishing,

and other aspects of survey operations.

Finally, while disruptions to time series

exist, they are not generally significant.

The statistical agencies can develop

statistical ‘‘links,’’ to enable the retabulation of time series on the 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 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.

TABLE 1

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XX ........ Wood Product Manufacturing, Except Furniture:

XXX ...... Sawmill Product and Wood Preservation Manufacturing:

XXXX ... Sawmill Product and Wood Preservation

Manufacturing:

XXXXX Sawmills and Planing Mills .......................... R 2421 Sawmills and Planing Mills, General.

2429 Special Product Sawmills, NEC.

XXXXX Wood Preserving ......................................... E 2491 Wood Preserving.

XXX ...... Laminated Wood Product Manufacturing:

XXXX ... Laminated Wood Product Manufacturing:

XXXXX Hardwood Veneer and Plywood Manufacturing.E 2435 Hardwood Veneer and Plywood.

XXXXX Softwood Veneer and Plywood Manufacturing.E 2436 Softwood Veneer and Plywood.

XXXXX Structural Wood Member Manufacturing,

Except Trusses.

R *2439 Structural Wood Members, NEC (except trusses).

XXXXX Reconstituted Wood Product Manufacturing E 2493 Reconstituted Wood Products.

XXX ...... Other Wood Product Manufacturing:

XXXX ... Wood Construction Product Manufacturing:

XXXXX Hardwood Dimension Mills .......................... R *2426 Hardwood Dimension and Flooring Mills (except flooring).

XXXXX Wood Window and Door Manufacturing ..... N *2431 Millwork.

XXXXX Other Millwork Manufacturing, Including

Flooring.

R *2426 Hardwood Dimension and Flooring Mills (hardwood flooring).

*2431 Millwork.

XXXXX Truss Manufacturing .................................... N *2439 Structural Wood Members, NEC (trusses).
26612 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 1—Continued

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XXXX ... Wood Container and Package Product Manufacturing.

XXXXX Wood Container and Package Product

Manufacturing.

N 2441 Nailed and Lock Corner Wood Boxes and Shook.

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 (Mobile) Manufacturing.E 2451 Mobile Homes.

XXXXX Prefabricated Wood Building and Component Manufacturing.E 2452 Prefabricated Wood Buildings and Components.

XXXXX Other Wood Product Manufacturing ........... R *2426 Hardwood Dimension and Flooring 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).

2421@ .............................. Sawmills and Planing Mills, General ...................... Sawmills and Planing Mills (pt).

2426@ .............................. 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 Nonupholstered Furniture

(Household).

Wood Household Furniture Manufacturing, Except Upholstered

(pt) (Included in Furniture Manufacturing subsector).

Chair Frames for Upholstered Furniture (Household).Upholstered Wood Household Furniture Manufacturing (pt) (Included in Furniture Manufacturing subsector).

Other Hardwood Dimension Except Flooring ..... Hardwood Dimension Mills.

2429@ .............................. Special Product Sawmills NEC ............................... Sawmills and Planing Mills (pt).

2431@ .............................. Millwork:

Wood Window and Door Manufacturing ............. Other Millwork 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

2439@ .............................. Structural Wood Members, NEC:

Except Trusses .................................................... Structural Wood Member Manufacturing, Except Trusses.

Trusses ................................................................ Truss Manufacturing.

2441 ................................. Nailed and Lock Corner Wood Boxes and Shook Wood Containers and Package Product 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 Components .... Prefabricated Wood Building and Component Manufacturing.

2491 ................................. Wood Preserving .................................................... Wood Preserving.

2493 ................................. Reconstituted Wood Products ................................ Reconstituted Wood Product Manufacturing.

2499 ................................. Wood Products, NEC:

Wood Tubs and Vats, Jewelry and Cigar Boxes Other Wood Container Manufacturing (pt).

Wood Laundry Hampers ..................................... Household Wood Furniture Manufacturing, Except Upholstered

(pt) (Included in Furniture Manufacturing subsector).

Laundry Hampers Made from Rattan, Reed or

Willow Mirror and Picture Frames.

Other Furniture Manufacturing (pt) (Included in Furniture Manufacturing subsector) All Other Miscellaneous Manufacturing

(pt) (To Be Included in Miscellaneous Manufacturing subsector).

Other Wood Products .......................................... Other Wood Product Manufacturing (pt).

3053@ .............................. Gaskets, Packing, and Sealing Devices:

Cork Gaskets, Packing, and Sealing Devices .... Other Wood Product Manufacturing (pt).
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26613

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Metal Gaskets, Packing, and Sealing Devices ... Other Miscellaneous Fabricated Metal Product Manufacturing

(pt) (Included in Fabricated Metal Product Manufacturing

subsector).

Plastics Gaskets, Packing, and Sealing Devices All Other Plastic Product Manufacturing (pt) (Included in Rubber and Plastic Product Manufacturing subsector).

Rubber Gaskets, Packing, and Sealing Devices All Other Rubber Product Manufacturing (pt) (Included in Rubber and Plastic Product Manufacturing subsector).

3131@ .............................. 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).

3993@ .............................. 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 Advertising Specialties Commercial Flexographic Printing (pt) (Included in Printing and

Related Support Activities subsector).

Gravure Printing of Advertising Specialties ........ Commercial Gravure Printing (pt) (Included in Printing and Related Support Activities subsector).

Lithographic Printing of Advertising Specialties Commercial Lithographic Printing (pt) (Included in Printing and

Related Support Activities subsector).

Screen Printing of Advertising Specialties .......... Commercial Screen Printing (pt) (Included in Printing and Related Support Activities subsector).

Other Printing of Advertising Specialties ............ Other Commercial Printing (pt) (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, Scraping, Tanning and

Dyeing.

Leather and Hide Tanning and Finishing Manufacturing (pt) (Included in Leather and Allied Product Manufacturing subsector).

Lamp Shades of Paper and Textile .................... Other Lighting Equipment 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, Hair Curlers,

Etc..

All Other Fabricated Metal Product Manufacturing (pt) (Included in Fabricated Metal Product Manufacturing subsector).

Plastics Products, Such As Combs, Hair

Curlers, Etc..

All Other Plastic Product Manufacturing (pt) (Included in Rubber and Plastic Product Manufacturing subsector).

Flexographic Printing Eyeglass Frames for the

Trade.

Commercial Flexographic Printing (pt) (Included in Printing and

Related Support Activities subsector).

Gravure Printing Eyeglass Frames for the Trade Commercial Gravure Printing (pt) (Included in Printing and Related Support Activities subsector).

Lithographic Printing Eyeglass Frames for the

Trade.

Commercial Lithographic Printing (pt) (Included in Printing and

Related Support Activities subsector).

Screen Printing Eyeglass Frames for the Trade Commercial Screen Printing (pt) (Included in Printing and Related Support Activities subsector).

Other Printing Eyeglass Frames for the Trade ... Other Commercial Printing (pt) (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
26614 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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.
26616 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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.

TABLE 1

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XX ........ Rental and Leasing Services:

XXX ...... Rental and Leasing of Automotive Equipment

Without Drivers:

XXXX ... Rental and Leasing of Passenger Cars Without Drivers:

XXXXX Rental of Passenger Cars Without Drivers E 7514 Passenger Car Rental.

XXXXX Leasing of Passenger Cars Without Drivers R *6159 Miscellaneous Business Credit Institutions (fleet leasing).

7515 Passenger Car Leasing.

XXXX ... Rental and Leasing of Trucks Without Drivers, Utility Trailers and Recreational Vehicles.N *6159 Miscellaneous Business Credit Institutions (truck leasing).

7513 Truck Rental and Leasing Without Drivers.

7519 Utility Trailers and Recreational Vehicle Rental.

XXX ...... Rental and Leasing of Consumer Goods:

XXXX ... Rental of Consumer Electronics, Appliances

and Home and Garden Tools:

XXXXX Rental of Consumer Electronics and Appliances.N *7359 Equipment Rental and Leasing, NEC (appliances, TV, VCR,

and electronic equipment rental).

XXXXX Rental and Leasing of Home and Garden

Equipment.

N *7359 Equipment Rental and Leasing, NEC (home and garden tool

rental).
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26617

TABLE 1—Continued

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XXXX ... Rental of Formal Wear and Costumes ........... N *7299 Miscellaneous Personal Services, 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 Home Health Furniture and Equipment.N *7352 Medical Equipment Rental and Leasing (home health furniture

and equipment rental and leasing).

XXXXX Rental of Recreational Goods ..................... N *7999 Amusement and Recreation Services, NEC (canoe, pleasure

boats, bicycles, motorcycles, moped, go carts, etc. rental).

XXXXX All Other Rental and Leasing of Consumer

Goods.

R *7299 Miscellaneous Personal Services, NEC (locker rental, except

cold 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 Commercial Air,

Rail, and Water Transportation Equipment.

N *4499 Water Transportation Services, NEC (ship rental, commercial).

*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 Heavy Construction,

Mining and Forestry Machinery and

Equipment.

R *6159 Miscellaneous Business Credit Institutions (heavy machinery

and equipment finance leasing).

7353 Heavy Construction Equipment Rental and Leasing.

*7359 Equipment Rental and Leasing, NEC (oil field and well drilling

equipment).

XXXX ... Rental and Leasing of Office Machinery and

Equipment.

N *6159 Miscellaneous Business Credit Institutions (office equipment).

*7359 Equipment Rental and Leasing (office machine rental and

leasing).

7377 Computer Rental and Leasing.

XXXX ... Rental and Leasing of Other Machinery and

Equipment.

N *6159 Miscellaneous Business Credit Institutions (other).

*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.

TABLE 2

1987 SIC code 1987 SIC description 1997 U.S. description

4499 ................................. Water Transportation Services, NEC Ship Rental,

Commercial.

Rental and Leasing of Commercial Air, Rail, and Water Transportation Equipment (pt).

4741@ .............................. Rental of Railroad Cars .......................................... Rental and Leasing of Commercial Air, Rail, and Water Transportation Equipment (pt).

6159@ .............................. Miscellaneous Business Credit Institution:

Automobile Fleet Finance Leasing ...................... Leasing of Passenger Cars Without Drivers (pt).

Truck Finance Leasing ........................................ Rental and Leasing of Trucks Without Drivers, Utility Trailers,

and Recreational Vehicles (pt).

Air, Rail, and Water Equipment Finance Leasing Rental and Leasing of Commercial Air, Rail, and Water Transportation Equipment (pt).

Heavy Machinery and Equipment Finance Leasing.Rental and Leasing of Heavy Construction, Mining, and Forestry Machinery and Equipment (pt).
26618 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Office Machinery and Equipment Finance Leasing.Rental and Leasing of Office Machinery and Equipment (pt).

Other Machinery and Equipment Finance Leasing.Rental and Leasing of Other Machinery and Equipment (pt).

7299 ................................. Miscellaneous Personal Services:

Formal Wear and Costume Rental ..................... Rental of Formal Wear and Costumes (pt).

Locker Rental, Except Cold Storage ................... All Other Rental and Leasing of Consumer Goods (pt).

7352@ .............................. Medical Equipment Rental and Leasing:

Home Health Furniture and Equipment Rental

and Leasing.

Rental and Leasing of Home Health Furniture and Equipment.

Medical Machinery Rental and Leasing .............. Rental and Leasing of Other Machinery and Equipment (pt).

7353 ................................. Heavy Construction Equipment Rental and Leasing.Rental and Leasing of Heavy Construction, Mining and Forestry Machinery and Equipment pt).

7359@ .............................. Equipment Rental and Leasing, NEC:

Consumer Electronics and Appliances Rental

and Leasing.

Rental of Consumer Electronics and Appliances.

Home and Garden Tools and Equipment Rental

and Leasing.

Rental and Leasing of Home and Garden Equipment.

Residential Furniture, Party Supplies, and All

Other Miscellaneous.

All Other Rental and Leasing of Consumer Goods (pt).

Consumer Goods Rental and Leasing:

Oilfield and Well Drilling Machinery and Equipment Rental and.Rental and Leasing of Heavy Construction, Mining and Forestry 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.

Rental and Leasing of Office Machinery and Equipment (pt).

Industrial Trucks Rental and Leasing ................. Rental and Leasing of Other Machinery and Equipment (pt).

7377 ................................. Computer Rental and Leasing ................................ Rental and Leasing of Office Machinery and Equipment (pt).

7513 ................................. Truck Rental and Leasing, Without Drivers ............ Rental and Leasing of Trucks Without 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 Vehicle Rental ....... Rental and Leasing of Trucks Without Drivers, Utility Trailers

and Recreational Vehicles (pt).

7819 ................................. Services Allied to Motion Picture Production:

Wardrobe Rental for Motion Picture Film Production.Rental of Formal Wear and Costumes (pt).

Motion Picture Equipment Rental ....................... Rental and Leasing of Other 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.

7922@ .............................. Theatrical Producers (Except Motion Picture) and

Miscellaneous Theatrical Services.

Rental and Leasing of Other Machinery and Equipment (pt).

Theatrical Equipment Rental ............................... Rental and Leasing of Other Machinery and Equipment (pt).

7999@ .............................. Amusement and Recreation, NEC:

Recreational Goods Rental Including Pleasure

Boats.

Rental of Recreational Goods (pt).

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.
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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
26620 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

TABLE 1

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XX ........ Repair and Maintenance:

XXX ...... Automotive Repair and Maintenance:

XXXX ... Automotive Mechanical and Electrical Repair and Maintenance:

XXXXX General Automotive Repair ......................... E 7538 General Automotive Repair Shops.

XXXXX Automotive Exhaust System Repair ........... E 7533 Automotive Exhaust System Repair Shops.

XXXXX Automotive Transmission Repair ................ E 7537 Automotive Transmission Repair Shops.

XXXXX Other Automotive Mechanical and Electrical Repair and Maintenance.E 7539 Automotive Repair Shops, NEC.

XXXX ... Automotive Body, Paint, and Interior Repair:

XXXXX Automotive Body, Paint and Upholstery

Repair and Maintenance.

E 7532 Top, Body, and Upholstery Repair Shops and Paint Shops.

XXXXX Automotive Glass Replacement Shops ...... E 7536 Automotive Glass Replacement Shops.

XXXX ... Other Automotive Repair and Maintenance:

XXXXX Automotive Oil Change and Lubrication

Shops.

N *7549 Automotive Services, Except Repair and Carwashes (lubricating service, automotive).

XXXXX Car Washes ................................................ E 7542 Carwashes.

XXXXX All Other Automotive Repair and Maintenance.R *7534 Tire Retreading and Repair Shops (repair).

*7549 Automotive Services, Except Repair and Carwashes (except

lubricating and towing).
26622 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 1—Continued

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XXX ...... Heavy and Industrial Machinery and Equipment

Repair and Maintenance:

XXXX ... Heavy and Industrial Machinery and Equipment Repair and Maintenance:

XXXXX Transportation Equipment Repair and

Maintenance.

N *3732 Boat Building and Repairing (boat repair).

*7699 Repair Shops and Related Services, NEC (other non-automotive transportation equip.).

XXXXX Other Industrial Machinery and Equipment

Repair and Maintenance.

R *7623 Refrigerator and Air-Conditioning Service and Repair Shops

(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 Repair and Maintenance.N *7622 Radio and Television Repair Shops (stereo, TV, VCR, and

other consumer electronics equipment).

*7629 Electrical and Electronic Repair Shops, NEC (consumer equipment except computer).

XXXXX Computer and Office Machine Repair and

Maintenance.

N 7378 Computer Maintenance and Repair.

*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 Repair and

Maintenance.

N *7622 Radio and Television Repair Shops (telecommunication equipment repair).

*7629 Electrical and Electronic Repair Shops, NEC (telephone set

repair).

XXXXX Other Electronic and Precision Equipment

Repair and Maintenance.

N *7629 Electrical and Electronic Repair Shops, NEC (electrical measuring 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 Repair and

Maintenance.

N *7699 Repair Shops and Related Services, NEC (lawnmower repair

shops, sharpening and repairing knives, saws and tools).

XXXXX Appliance Repair and Maintenance ............ N *7623 Refrigeration and Air-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 Repair ................ E 7641 Reupholstery and Furniture Repair.

XXXX ... Footwear and Leather Goods Repair ............. R 7251 Shoe Repair and Shoeshine Parlors.

*7699 Repair Shops and Related Services (leather goods repair

shops, luggage repair shops, pocketbook repair shops).

XXXX ... Other Personal or Household Goods Repair

and Maintenance.

N *7219 Laundry and Garment Services, NEC (alteration and repair).

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.

TABLE 2

1987 SIC code 1987 SIC description 1997 U.S. description

3732@ .............................. Boat Building and Repairing (Boat repair) .............. Transportation Equipment Repair and Maintenance (pt).
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26623

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

7219 ................................. Laundry and Garment Services, NEC (Alteration

and Repair).

Other Personal or Household Goods Repair and Maintenance

(pt).

7251 ................................. Shoe Repair Shops and Shoeshine Parlors ........... Footwear and Leather Goods Repair (pt).

7378 ................................. Computer Maintenance and Repair ........................ Computer and Office Machine Repair and Maintenance (pt).

7532 ................................. Top, Body, and Upholstery Repair Shops and

Paint Shops.

Automotive Body, Paint, and Upholstery Repair and Maintenance.

7533 ................................. Automotive Exhaust System Repair Shops ............ Automotive Exhaust System Repair.

7534@ .............................. Tire Retreading and Repair Shops:

Remanufacturing ................................................. Manufacturing Sector.

Repair .................................................................. All Other Auto Repair and Maintenance (pt).

7536 ................................. Automotive Glass Replacement Shops .................. Automotive Glass Replacement Shops.

7537 ................................. Automotive Transmission Repair Services ............. Automotive Transmission Repair.

7538 ................................. General Automotive Repair Services ..................... General Automotive Repair.

7539 ................................. Automotive Repair shops, NEC .............................. Other Automotive Mechanical and Electrical Repair and Maintenance.

7542 ................................. Carwashes .............................................................. Car Washes.

7549@ .............................. Automotive Services, Except Repair and Carwashes:

Lubricating Services, Automotive ........................ Automotive Oil Change and Lubrication Shops.

Towing ................................................................. Towing Services (Included in Transportation sector).

Automotive Services, Except Repair and Carwashes (except lubricating and towing).All Other Automotive Repair and Maintenance (pt).

7622 ................................. Radio and Television Repair Shops:

Stereo, TV, VCR, and Other Consumer Electronics Equipment.Consumer Electronics Repair and Maintenance (pt).

Telecommunication Equipment Repair ............... Communication Equipment Repair and Maintenance (pt).

7623@ .............................. Refrigeration and Air-Conditioning Services and

Repair Shops:

Commercial Refrigerator Equipment Repair ....... Other Industrial Machinery and Equipment Repair and Maintenance (pt).

Except Commercial ............................................. Appliance Repair and Maintenance (pt).

7629@ .............................. Electrical and Electronic Repair Shops, NEC:

Business and Office Machine Repair, Electrical Computer and Office Machine Repair and Maintenance (pt).

Telephone Set Repair ......................................... Communication Equipment Repair and Maintenance (pt).

Electrical Measuring Instrument Repair and

Calibration, Medical Equipment Repair, Electrical.

Other Electronic and Precision Equipment Repair and Maintenance (pt).

Appliance Repair, Electrical; Washing Machine

Repair; Electric Razor Repair.

Appliance Repair and Maintenance (pt).

Consumer Electronic Equipment Repair Except

Computer.

Consumer Electronics Repair and Maintenance (pt).

7631@ .............................. Watch, Clock, and Jewelry Repair ......................... Other Personal or Household Goods Repair and Maintenance

(pt).

7641 ................................. Reupholstery and Furniture Repair ........................ Reupholstery and Furniture Repair.

7692@ .............................. Welding Repair ....................................................... Other Personal or Household Goods Repair and Maintenance

(pt).

7694@ .............................. Armature Rewinding Shops:

Repair .................................................................. Other Industrial Machinery and Equipment Repair and Maintenance (pt).

Remanufacturing ................................................. Included in Manufacturing Sector.

7699@ .............................. Repair Shops and Related Services, NEC:

Other Non-Automotive Transportation Equipment.Transportation Equipment Repair and Maintenance (pt).

Industrial Machines and Equipment .................... Other Industrial Machinery and Equipment Repair and Maintenance (pt).

Typewriter Repair ................................................ Computer and Office Machine Repair and Maintenance (pt).

Dental Instrument Repair, Laboratory Instrument

Repair, Medical Equipment and Other Electronic and Precision.

Other Electronic and Precision Equipment Repair and Maintenance (pt).

Equipment Repair, Except Typewriters:

Lawnmower Repair Shops, Sharpening and

Repairing Knives, Saws and Tools.

Home and Garden Equipment Repair and Maintenance (pt).

Gas Appliance Repair Service, Sewing Machine Repair, Stove Repair Shops, and

Other Non-Electrical Appliances.

Appliance Repair and Maintenance.

Leather Goods Repair Shops, Luggage Repair Shops, Pocketbook Repair Shops.Footwear and Leather Goods Repair (pt).

Lock Parts Made to Order and Locksmith

Shops.

(Included in Management and Support Services subsector).
26624 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Except Industrial, Electronic, Home and Garden, Appliance, Locksmith, and Leather

Goods.

Other Personal or Household Goods Repair and Maintenance.

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
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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 subdivided 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.
26626 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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.
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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
26628 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

1997 NAICS and U.S. description Status

code

1987

SIC

code

1987 SIC description

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 Services .............. E 8744 Facilities Support Management Services.

XXX ...... Employment Services: ............

XXXX ... Employment Placement Agencies .................. R *7361 Employment Agencies (except 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 Services ..................... N *7338 Secretarial and Court Reporting (except court reporting).

XXXX ... Telephone Call Centers: ............

XXXXX Telephone Answering Services ................... N *7389 Business Services, Not Elsewhere 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 Duplicating Services ...... R *2752 Commercial Printing, Lithographic (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 Stenotype Services ... N *7338 Secretarial and Court Reporting (except secretarial).

XXXXX All Other Administrative Support Services N *7389 Business Services, Not Elsewhere 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 and Reservation

Services.

4729 Arrangement of Passenger Transportation, Not Elsewhere

Classified.

XXXXX Convention and Visitor Bureaus ................. N *7389 Business Services, Not Elsewhere Classified (convention and

visitor bureaus, tourist information bureaus).

XXXXX All Other Travel Arrangement and Reservation Services.N *7389 Business Services, Not Elsewhere Classified (reservation systems: hotel & restaurants).

*7999 Amusement and Recreation Services, Not Elsewhere Classified (ticket agencies).

XXX ...... Security and Investigation Services: ............

XXXX ... Investigation, Guard and Armored Car Services:............
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26629

TABLE 1—Continued

1997 NAICS and U.S. description Status

code

1987

SIC

code

1987 SIC description

XXXXX Investigation Services ................................. N *7381 Detective and Armored Car Services (detective services).

XXXXX Security Guards and Patrol Services .......... N *7381 Detective and Armored Car Services (guard services).

XXXXX Armored Car Services ................................. N *7381 Detective and Armored Car Services (armored car services).

XXXX ... Security Systems Services: ............

XXXXX Security Systems Services, except Locksmiths.E 7382 Security Systems Services.

XXXXX Locksmiths .................................................. N *7699 Repair Shops and Related Services, Not Elsewhere Classified

(locksmith shops).

XXX ...... Services to Buildings and Dwellings: ............

XXXX ... Exterminating and Pest Control Services ....... R *7342 Disinfecting and Pest Control 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 Services ........ E 0783 Ornamental Shrub and Tree Services.

XXXX ... Carpet and Upholstery Cleaning Services ..... E 7217 Carpet and Upholstery Cleaning.

XXXX ... Other Services to Buildings and Dwellings ............ N *7389 Business Services, Not Elsewhere 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 Services .................. N *7389 Business Services, Not Elsewhere Classified (packaging and

labeling services).

XXXX ... Convention and Trade Show Organizers ....... *7389 Business Services, Not Elsewhere Classified (convention and

trade show services).

XXXX ... Other Miscellaneous Support Services .......... N *7389 Business Services, Not Elsewhere 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.

TABLE 2

1987 SIC code 1987 SIC description 1997 U. S. description

0782 ................................. Lawn and Garden Services .................................... Lawn and Garden Services.

0783 ................................. Ornamental Shrub and Tree Services .................... Ornamental Shrub and Tree Services.

2752@ .............................. Commercial Printing, Lithographic:

Electrostatic Digital and Nonimpact Quick Printing.Photocopying and Duplicating Services (pt).

4581 ................................. Airport, Flying Fields, and Airport Terminal Services:

Aircraft Cleaning and Janitorial Services ............ Janitorial Services (pt).

4724 ................................. Travel Agencies ...................................................... Travel Agencies.

4725 ................................. Tour Operators ........................................................ Tour Operators.

4729 ................................. Arrangement of Passenger Transportation, Not

Elsewhere Classified.

Other Travel Arrangement and Reservation Services (pt).

7217 ................................. Carpet and Upholstery Cleaning ............................ Carpet and Upholstery Cleaning.

7322 ................................. Adjustment and Collection Services:

Collection Services .............................................. Collection agencies.

Adjustment Bureaus ............................................ Repossession Services (pt).

7323 ................................. Credit Reporting Services ....................................... Credit Bureaus.

7334@ .............................. Photocopying and Duplicating Services ................. Photocopying and Duplicating Services (pt).

7338 ................................. Secretarial and Court Reporting Services:

Secretarial Services ............................................ Document Preparation Services.

Court Reporting Services .................................... Court Reporting and Stenotype Services.

7342 ................................. Disinfecting and Pest Control Services:

Disinfecting Services ........................................... Janitorial Services (pt).

Exterminating and Pest Control Services ........... Exterminating and Pest Control Services.

7349 ................................. Building Cleaning and Maintenance Services, Not

Elsewhere Classified.

Janitorial Services (pt).

7361@ .............................. Employment Agencies:

Executive Placing Services ................................. Human Resources Consulting (pt) (Included in Professional,

Scientific and Technical Services Subsector)
26630 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U. S. description

Except Executive Placing Services ..................... Employment Placement Agencies (pt).

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.

7389@ .............................. Business Services, Not Elsewhere Classified:

Telephone Answering Services ........................... Telephone Answering Services.

Telemarketing Bureaus and Telephone Soliciting Services.Telemarketing Bureaus.

Private Mail Centers and Mail Box Rental .......... Private Mail Centers.

Recovery and Repossess ................................... Repossession Services (pt).

Packaging and Labeling Services ....................... Packaging and Labeling Services.

Swimming Pool Cleaning and Maintenance ....... Other Services to Dwellings and Buildings (pt).

Hotel and Restaurant Reservation Services ....... Other Travel Arrangement and Reservation Services.

Convention and Trade Show Services ............... Trade Show and Convention Organizers.

Convention and Visitors Bureaus and Tourist Information Service.Convention and Visitors Bureaus.

Administrative Support Services, Except Telephone Answering, Telemarketing Bureaus,

Private Mail Centers, and Repossession Services.

All Other Administrative Support Services.

Business Support Services, Except Packaging

and Labeling Services.

Other Miscellaneous Support Services.

Convention and Trade Show Services ............... Convention and Trade Show Organizers.

7699 ................................. Repair Shops and Related Services, Not Elsewhere Classified:

Locksmith Shops ................................................. Locksmiths.

Furnace Ducts, Chimney and Gutter Cleaning

Services.

Other Services to Dwellings and 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).

8741@ .............................. 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
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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
26632 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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:

Air Transportation

Rail Transportation

Water Transportation

Truck Transportation

Transit and Ground Passenger

Transportation

Pipeline Transportation

Scenic and Sightseeing Transportation

Support Activities for Transportation

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 thirtynine 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 multimodal, 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.
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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 thirtynine 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
26634 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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, LongDistance. 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 highwaybased 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 longdistance 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.
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26635

TABLE 1

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XX ........ Air Transportation

XXX ...... Scheduled Air Transportation:

XXXX ... Scheduled Air Transportation:

XXXXX Scheduled Passenger Air Transportation ... N *4512 Air Transportation, Scheduled (passenger).

XXXXX Scheduled Freight Air Transportation ......... N *4512 Air Transportation, Scheduled (freight).

XXX ...... Nonscheduled Air Transportation:

XXXX ... Nonscheduled Chartered Air Transportation:

XXXXX Nonscheduled Chartered Passenger Air

Transportation.

N *4522 Air Transportation, Nonscheduled (passenger).

XXXXX Nonscheduled Chartered Freight Air Transportation.N *4522 Air Transportation, Nonscheduled (freight).

XXXX ... Nonscheduled Specialty Air Transportation ... N Establishments that use small, 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 Transportation E 4412 Deep Sea Foreign Transportation of Freight.

XXXXX Deep Sea Passenger Transportation R *4481 Deep Sea Transportation of Passengers, Except by Ferry

(deep sea activities).

XXXXX Coastal and Great Lakes Freight Transportation.R 4424 Deep Sea Domestic 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 Passenger

Transportation.

R *4481 Deep Sea Transportation of Passengers, Except by Ferry

(coastal activities).

*4482 Ferries (coastal and Great Lakes).

XXX ...... Inland Water Transportation:

XXXX ... Inland Water Transportation:

XXXXX Inland Water Freight Transportation ........... R 4449 Water Transportation of Freight, Not Elsewhere Classified.

*4492 Towing and Tugboat Services (inland barge operations).

XXXXX Inland Water Passenger Transportation ..... R *4482 Ferries (inland).

*4489 Water Transportation of Passengers, Not Elsewhere Classified

(water taxi).

XX ........ Truck Transportation:

XXX ...... General Freight Trucking:

XXXX ... General Freight Trucking, Local ..................... N *4212 Local Trucking without Storage (general freight).

*4214 Local Trucking with Storage (general freight).

XXXX ... General Freight Trucking, Long-Distance:

XXXXX General Freight Trucking, Long-Distance,

Truckload.

N *4213 Trucking, Except Local (general freight, truckload).

XXXXX General Freight Trucking, Long-Distance,

Less Than Truckload.

N *4213 Trucking, Except Local (general freight, less than truckload).

XXX ...... Specialized Freight Trucking:

XXXX ... Used Household and Office Goods Moving ... N *4212 Local Trucking Without Storage (household goods moving).

*4213 Trucking, Except Local (household goods moving).

*4214 Local Trucking With Storage (household goods moving).

XXXX ... Specialized Freight (except Used Goods)

Trucking, Local.

N *4212 Local Trucking without Storage (specialized freight).
26636 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 1—Continued

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

*4214 Local Trucking with Storage (specialized freight).

XXXX ... Specialized Freight (except Used Goods)

Trucking, Long-Distance.

N *4213 Trucking, Except Local (specialized freight).

XX ........ Transit and Ground Passenger Transportation:

XXX ...... Urban Transit Systems:

XXXX ... Urban Transit Systems:

XXXXX Mixed Mode Transit Systems ...................... N *4111 Local and Suburban Transit (mixed mode).

XXXXX Commuter Rail Systems ............................. N *4111 Local and Suburban Transit (commuter rail).

XXXXX Bus and Motor Vehicle Transit Systems ..... N *4111 Local and Suburban Transit (bus and motor vehicle).

XXXXX Other Urban Transit Systems ..................... N *4111 Local and Suburban Transit (other than mixed mode, commuter rail, and bus and motor vehicle).

XXX ...... Interurban and Rural Bus Lines:

XXXX ... Interurban and Rural Bus Lines ..................... E 4131 Intercity and Rural Bus 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 Industry ............... R *4151 School Buses.

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 Transportation ..................... N *4119 Local Passenger Transportation, Not Elsewhere Classified

(special needs transportation).

XXXXX All Other Transit and Ground Passenger

Transportation.

R *4111 Local and Suburban Transit (airport 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 Crude Oil .............. E 4612 Crude Petroleum Pipelines.

XXX ...... Pipeline Transportation of Natural Gas:

XXXX ... Pipeline Transportation of Natural Gas .......... E 4922 Natural Gas Transmission.

XXX ...... Other Pipeline Transportation:

XXXX ... Pipeline Transportation of Refined Petroleum

Products.

E 4613 Refined Petroleum Pipelines.

XXXX ... All Other Pipeline Transport ........................... E 4619 Pipelines, Not Elsewhere Classified.

XX ........ Scenic and Sightseeing Transportation:

XXX ...... Scenic and Sightseeing Transportation, Land:

XXXX ... Scenic and Sightseeing Transportation, Land N *4119 Local Passenger Transportation, Not Elsewhere Classified

(cable cars and cog railways, except scenic and amusement

and sightseeing buses).

*4789 Transportation Services, Not Elsewhere Classified (horsedrawn cabs and carriages).

*7999 Amusement and Recreation Services, Not Elsewhere Classified (scenic railroads).

XXX ...... Scenic and Sightseeing Transportation, Water:

XXXX ... Scenic and Sightseeing Transportation,

Water.

N *4489 Water Transportation of Passengers, Not Elsewhere Classified

(airboats, excursion boats, and sightseeing boats).

XXX ...... Scenic and Sightseeing Transportation, Other:

XXXX ... Scenic and Sightseeing Transportation, Other N *4522 Air Transportation, Non-Scheduled (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).
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26637

TABLE 1—Continued

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XXXXX Air Operations, Except Air Traffic Control ... N *4581 Airports, Flying Fields, and 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 for Air Transportation N *4581 Airports, Flying Fields, and Airport Terminal Services (aircraft

servicing and repairing).

XXX ...... Support Activities for Rail Transportation:

XXXX ... Support Activities for Rail Transportation ....... R *4013 Railroad Switching and Terminal 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 Shipping .................. N *4492 Towing and Tugboat Services (all but barge operations).

*4499 Water Transportation Services, Not Elsewhere Classified (piloting vessels in and out of harbors and marine salvage).

XXXX ... Other Support Activities for Water TransportationR *4499 Water Transportation Services, 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 for Road Transportation.R 4173 Terminal and Service Facilities 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 Arrangement ............... E 4731 Arrangement of Transportation of Freight and Cargo.

XXX ...... Storage Facilities:

XXXX ... Refrigerated Storage Facilities ....................... R 4222 Refrigerated Warehousing and Storage.

*4226 Special Warehousing and Storage, Not Elsewhere Classified

(fur storage).

XXXX ... Farm Product Storage Facilities ..................... E 4221 Farm Product Warehousing and Storage.

XXXX ... Other Storage Facilities:

XXXXX General Storage Facilities ........................... R *4225 General Warehousing and Storage (all but self-storage

miniwarehouse warehousing).

XXXXX All Other Storage Facilities ......................... R 4226 Special Warehousing and Storage, 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 Activities for Transportation.R *4729 Arrangement of Passenger Transportation, Not Elsewhere

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.

TABLE 2

1987 SIC code 1987 SIC description 1997 NAICS and U.S. description

0721 ................................. Crop Planting, Cultivating and Protecting:
26638 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 NAICS and U.S. description

Crop dusting when combined with a variety of

aircraft-based services.

Nonscheduled Speciality Air Transportation.

Other .................................................................... (Included in the Crop Production subsector).

0851 ................................. Forestry Services:

Aerial forest fighting when combined with a variety of aircraft-based services.Nonscheduled Speciality Air Transportation.

Other .................................................................... (Included in the Forestry subsector).

1382 ................................. Oil and Gas Field Exploration Services:

Aerial geophysical exploration combined with a

variety of aircraft-based services.

Nonscheduled Speciality Air Transportation.

Other .................................................................... (Included in the Mining subsector).

4011 ................................. Railroads, Line-haul Operating ............................... Line-Haul Railroads.

4013@ .............................. Railroad Switching and Terminal Establishments:

Beltline and logging railroads .............................. Short Line Railroads.

Other .................................................................... Support Activities for Rail Transportation (pt.).

4111@ .............................. Local and Suburban Transit:

Mixed mode transit systems ............................... Mixed Mode Transit Systems.

Commuter rail systems ....................................... Commuter Rail Systems.

Bus and motor vehicle transit systems ............... Bus and Motor Vehicle Transit Systems.

Other urban transit systems ................................ Other Urban Transit Systems.

Airport limousine transportation .......................... All Other Transit and Ground Passenger Transportation (pt).

4119@ .............................. 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 and cog railways,

except scenic.

Scenic and Sightseeing Transportation, Land (pt.).

Special needs transportation ............................... Special Needs Transportation.

Hearse rental with driver and carpool and vanpool operations.All Other Transit and Ground Passenger Transportation (pt).

Automobile rental with driver and limousine rental with driver.Limousine Service.

4121 ................................. Taxicabs:

Taxicabs .............................................................. Taxi Service.

4131 ................................. Intercity and Rural Bus Transportation ................... Interurban and Rural Bus Lines.

4141@ .............................. Local Charter Bus Service:

Local charter bus service .................................... Charter Bus Industry (pt.).

4142@ .............................. Bus Charter Service, Except Local:

Long-distance charter bus service ...................... Charter Bus Industry (pt.).

4151 ................................. School Buses .......................................................... School and Employee Bus Industry (pt.).

4173@ .............................. Terminal and Service Facilities for Motor Vehicle

Passenger Transportation:

Independent bus terminals .................................. Other Support Activities for Road Transportation (pt.).

4212@ .............................. Local Trucking Without Storage:

Garbage collection .............................................. Garbage Collection (Included in subsector related to sanitary

services).

Local general freight trucking without storage .... General Freight Trucking, Local (pt.).

Household goods moving without storage .......... Used Household and Office Goods Moving (pt.).

Local specialized freight trucking without storage.Specialized Freight (except Used Goods) Trucking, Local (pt.).

4213@ .............................. Trucking, Except Local:

Long-distance truckload general freight trucking General Freight Trucking, Long-Distance, Truckload.

Long-distance less than truckload general

freight trucking.

General Freight Trucking, Long-Distance, Less Than Truckload.

Long-distance household goods moving ............ Used Household and Office Goods Moving (pt.).

Long-distance specialized freight trucking .......... Specialized Freight (except Used Goods) Trucking, Long-Distance.

4214@ .............................. Local Trucking with Storage:

Local general freight trucking with storage ......... General Freight Trucking, Local (pt.).

Local household goods moving .......................... Used Household and Office Goods Moving (pt.).

Local specialized freight trucking with storage ... Specialized Freight (except Used Goods) Trucking, Local.

4215@ .............................. Couriers Services Except by Air:

Courier services Except by Air ............................ Courier Services (Included in Couriers subsector).

4221 ................................. Farm Product Warehousing and Storage ............... Farm Product Storage Facilities.

4222 ................................. Refrigerated Warehousing and Storage ................. Refrigerated Storage Facilities (pt.).

4225 ................................. General Warehousing and Storage:

General Warehousing and Storage .................... General Storage Facilities (pt).

Self-Storage Miniwarehouse Warehousing ......... Operators of Miniwarehouses (included in Real Estate subsector).

4226 ................................. Special Warehousing and Storage, Not Elsewhere

Classified:
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26639

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 NAICS and U.S. description

Fur storage .......................................................... Refrigerated Storage Facilities (pt.).

Other .................................................................... All Other Storage Facilities.

4231@ .............................. Terminal and Joint Terminal Maintenance Facilities for Motor Freight Transportation:

Independent truck terminals ................................ Other Support Activities for Road Transportation (pt.).

4311@ .............................. United States Postal Service:

United States Postal Service .............................. Postal Services (Included in Postal Services subsector).

4412 ................................. Deep Sea Foreign Transportation of Freight .......... Deep Sea Freight Transportation.

4424@ .............................. Deep Sea Domestic Transportation of Freight:

Coastal freight operations ................................... Coastal and Great Lakes Freight Transportation (pt.).

4432@ .............................. Freight Transportation on the Great Lakes-St.

Lawrence Seaway:

Great Lakes freight operations ............................ Coastal and Great Lakes Freight Transportation (pt.).

4449 ................................. Water Transportation of Freight, Not Elsewhere

Classified.

Inland Water Freight Transportation (pt.).

4481 ................................. Deep Sea Transportation of Passengers, Except

by Ferry:

Deep sea passenger transportation .................... Deep Sea Passenger Transportation.

Coastal and Great Lakes passenger transportation.Coastal and Great Lakes Passenger Transportation (pt.).

4482@ .............................. Ferries:

Coastal and Great Lakes ferries ......................... Coastal and Great Lakes Passenger 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 sightseeing

boats.

Scenic and Sightseeing Transportation, Water.

4491 ................................. Marine Cargo Handling:

Dock and pier operations .................................... Port and Harbor Operations (pt.)

Other .................................................................... Marine Cargo Handling.

4492@ .............................. Towing and Tugboat Services:

Coastal and Great Lakes barge operations ........ Coastal and Great Lakes Freight Transportation (pt.).

Inland water barge operations ............................ Inland Water Freight Transportation (pt.).

Other .................................................................... Navigational Services to Shipping (pt.).

4493@ .............................. Marinas:

Marinas ................................................................ Marinas (Included in Recreation, Amusement, and Gambling

subsector).

4499@ .............................. Water Transportation Services, Not Elsewhere

Classified:

Boat rental ........................................................... Boat rental (Included in Rental and Leasing subsector)

Seaway and lighthouse operations ..................... Port and Harbor Operations (pt.).

Marine salvage and piloting vessels in and out

of harbors.

Navigational Services to Shipping (pt.).

Other .................................................................... Other Supporting Activities for Water Transportation (pt.).

4512 ................................. Air Transportation, Scheduled:

Scheduled passenger air transportation ............. Scheduled freight air transportation.

Scheduled Passenger Air Transportation ........... Scheduled Freight Air Transportation.

4513@ .............................. Air Courier Services:

Air courier operations .......................................... Couriers and Messengers (Included in Couriers subsector).

4522@ .............................. Air Transportation, Nonscheduled:

Air ambulance ..................................................... Ambulance Services (Included in Health and Social Assistance

sector).

Nonscheduled charter freight air transportation Nonscheduled Chartered Freight Air Transportation.

Nonscheduled charter passenger air transportation.Nonscheduled Chartered Passenger Air Transportation.

Nonscheduled specialty air transportation .......... Nonscheduled specialty air 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 airports, hangar operations, airport terminal services, aircraft storage, airports, and flying fields.Airport Operations, Except Air Traffic Control.

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 Classified ....................... All Other Pipeline Transport.

4724@ .............................. Travel Agents:

Travel agents ....................................................... Travel Agencies (Included in Management and Support Services subsector).

4725@ .............................. Tour Operators:
26640 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 NAICS and U.S. description

Tour operators ..................................................... Tour Operators (Included in Management and Support Services subsector)

4729@ .............................. Arrangement of Passenger Transportation, Not

Elsewhere Classified:

Arrangement of carpools and vanpools .............. All Other Support Activities for Transportation (pt.).

Other .................................................................... (Included in Management and Support Services subsector).

4731 ................................. Arrangement of Transportation of Freight and

Cargo:

Freight rate auditors and tariff consultants ......... Other Management Consulting Services (Included in Professional, Scientific, and Technical Services subsector).

Other .................................................................... Freight Transportation Arrangement.

4741@ .............................. 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 stockyards for transportation.All Other Support Activities for 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 combined with a variety

of aircraft-based services.

Nonscheduled Specialty Air Transportation.

Other .................................................................... (Included in the Professional, Scientific and Technical Services

subsector).

7335 ................................. Commercial Photography:

Aerial photography when combined with a variety of aircraft-based services.Nonscheduled Specialty Air Transportation.

Except when combined with a variety of aircraftbased services.Commercial Photography (Included in the Professional, Scientific and 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 combined with

a variety of aircraft-based services

Nonscheduled Specialty Air Transportation.

Other .................................................................... (Included in the Recreation, Amusement, and Gambling subsector).

7999 ................................. Amusement and Recreation Services, Not Elsewhere Classified:

Aerial tramways, scenic and amusement ........... Scenic and Sightseeing 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 with a variety of

aircraft-based services.

Nonscheduled Specialty Air Transportation.

Other .................................................................... (Included in the Education Services subsector).

8713 ................................. Surveying Services: Aerial surveying when combined with a variety of aircraft-based servicesNonscheduled Specialty Air Transportation.

Other .................................................................... (Included in the Professional, Scientific and Technical Services

subsector).

9621 ................................. Regulation and Administration of Transportation

Programs:

Government air traffic control .............................. Air Traffic Control.
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26641

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 NAICS and U.S. description

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, LongDistance, Less than Truckload; Used

Household and Office Goods Moving;

Specialized Freight (except Used Goods)

Trucking, Local; and Specialized Freight

(except Used Goods) Trucking, LongDistance. 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, nonscheduled, 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
26642 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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
26644 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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 productionoriented 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
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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
26646 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

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 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 and uses relatively

stable technology for extraction.

The industries are highly specialized,

and they are economically significant.

Disruptions to time series are minimal.

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 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.

TABLE 1

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XX ........ Oil and Gas Extraction:

XXX ...... Oil and Gas Extraction:

XXXX ... Oil and Gas Extraction:

XXXXX Crude Petroleum and Natural Gas Extraction.E 1311 Crude Petroleum and Natural Gas.

XXXXX Natural Gas Liquid Extraction ..................... E 1321 Natural Gas Liquids.

XX ........ Mining except Oil and Gas:

XXX ...... Coal Mining:

XXXX ... Coal Mining:

XXXXX Bituminous Coal and Lignite Surface Mining.E 1221 Bituminous Coal and Lignite Surface Mining.

XXXXX Bituminous Coal Underground Mining ........ E 1222 Bituminous Coal Underground Mining.

XXXXX Anthracite Mining ........................................ E 1231 Anthracite Mining.

XXX ...... Metal Ore Mining:

XXXX ... Iron Mining ...................................................... E 1011 Iron Ores.

XXXX ... Gold and Silver Mining:

XXXXX Gold Mining ................................................. E 1041 Gold Ores.

XXXXX Silver Mining ................................................ E 1044 Silver Ores.

XXXX ... Copper, Nickel, Lead and Zinc Mining:

XXXXX Copper and Nickel Mining ........................... R 1021 Copper Ores.

*1061 Ferroalloy Ores, Except Vanadium (nickel).

XXXXX Lead and Zinc Mining ................................. E 1031 Lead and Zinc Ores.

XXXX ... Other Metal Ore Mining:

XXXXX Uranium-Radium-Vanadium Ores Mining ... E 1094 Uranium-Radium-Vanadium Ores.

XXXXX Other Metal Ore Mining ............................... R *1061 Ferroalloy Ores, Except Vanadium (other ferroalloys except

nickel).

1099 Miscellaneous Metal Ores, NEC.

XXX ...... Non-Metallic Mineral Mining and Quarrying:

XXXX ... Stone Mining and Quarrying:

XXXXX Dimension Stone Mining and Quarrying ..... E 1411 Dimension Stone.

XXXXX Crushed and Broken Limestone Mining and

Quarrying.

E 1422 Crushed and Broken Limestone.

XXXXX Crushed and Broken Granite Mining and

Quarrying.

E 1423 Crushed and Broken Granite.

XXXXX Other Crushed and Broken Stone Mining

and Quarrying.

R 1429 Crushed and Broken Stone, NEC.

*1499 Miscellaneous Nonmetallic Minerals, Except Fuels (bituminous

limestone and bituminous sandstone).

XXXX ... Sand, Gravel, Clay, Ceramic and Refractory

Mineral Mining and Quarrying:
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26647

TABLE 1—Continued

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XXXXX Construction Sand and Gravel Mining ........ E 1442 Construction Sand and Gravel.

XXXXX Industrial Sand Mining ................................ E 1446 Industrial Sand.

XXXXX Kaolin and Ball Clay Mining ........................ E 1455 Kaolin and Ball Clay.

XXXXX Clay, Ceramic, and Refractory Mineral Mining.E 1459 Clay, Ceramic, and Refractory Minerals, NEC.

XXXX ... Other Non-Metallic Mineral Mining and Quarrying:

XXXXX Potash, Soda, and Borate Mineral Mining E 1474 Potash, Soda, and Borate Minerals.

XXXXX Phosphate Rock Mining .............................. E 1475 Phosphate Rock.

XXXXX Other Chemical and Fertilizer Mineral Mining.E 1479 Chemical and Fertilizer Mineral Mining, NEC.

XXXXX All Other Non-Metallic Mineral Mining ........ R *1499 Miscellaneous Non-Metallic 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 Metal Mining ............. E 1081 Metal Mining Services.

XXXXX Support Activities for Coal Mining ............... E 1241 Coal Mining Services.

XXXXX Drilling Oil and Gas Wells ........................... E 1381 Drilling Oil and Gas Wells.

XXXXX Support Activities for Oil and Gas Field Exploration.E 1382 Oil and Gas Field Exploration Services.

XXXXX Other Oil and Gas Field Support Activities E 1389 Oil and Gas Field Services, NEC.

XXXXX Support Activities for Non-Metallic Minerals

Except Fuels.

E 1481 Non-Metallic Minerals Services, 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 Surface Mining ......... Bituminous Coal and Lignite Surface Mining.

1222 ................................. Bituminous Coal Underground Mining .................... Bituminous Coal Underground 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 Services .................. Support Activities for Oil and Gas 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 Minerals, NEC ....... Clay, Ceramic, and Refractory Mineral Mining.

1474 ................................. Potash, Soda, and Borate Minerals ........................ Potash, Soda, and Borate Mineral Mining.

1475 ................................. Phosphate Rock ...................................................... Phosphate Rock Mining.

1479 ................................. Chemical and Fertilizer Mineral Mining, NEC ........ Other Chemical and Fertilizer Mineral Mining.

1481 ................................. Non-Metallic Mineral Services, Except Fuels ......... Support Activities for Non-Metallic Minerals, Except Fuels.

1499 ................................. Miscellaneous Non-Metallic Minerals, Except

Fuels

Bituminous Limestone and Bituminous Sandstone Other Crushed and Broken Stone Mining or Quarrying (pt).
26648 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Except Bituminous Limestone and Bituminous

Sandstone.

All Other Non-Metallic Mineral 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 nonmetallic minerals). 1987 SIC 1481, NonMetallic 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
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 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 nonpaper 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 retabulation 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
26650 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

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 Newsprint Mills ............ R *2611 Pulp Mills (pulp mills producing 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 Manufacturing ........ E 2652 Setup Paperboard Boxes.

XXXXX Corrugated and Solid Fiber Box Manufacturing.E 2653 Corrugated and Solid Fiber Boxes.

XXXXX Fiber Can, Tube, Drum, and Similar Product.E 2655 Fiber Cans, Tubes, Drums, and Similar Products.

Manufacturing:

XXXXX Non-Folding Sanitary Food Container

Manufacturing.

R 2656 Sanitary Food Containers, Except Folding.

*2679 Converted Paper and Paperboard Products, NEC (egg cartons

and other containers from purchased paper).

XXXXX Folding Paperboard Box Manufacturing ..... E 2657 Folding Paperboard Boxes, Including Sanitary.

XXXX ... Paper Bag and Coated and Treated Paper

Manufacturing:

XXXXX Coated and Laminated Packaging Paper

and Plastic Film Manufacturing.

R *2671 Packaging Paper and Plastics Film, Coated and Laminated

(single-web paper, paper multiweb laminated rolls and

sheets for packaging uses).

XXXXX Coated and Laminated Paper Manufacturing.R 2672 Coated and Laminated Paper, NEC.

*2679 Converted Paper and Paperboard Products, NEC (wallpaper

and gift wrap paper).

XXXXX Plastic, Foil, and Coated Paper Bag Manufacturing.R *2673 Plastics, Foil, and Coated Paper Bags (coated or multiweb

laminated bags).

XXXXX Uncoated Paper and Multiwall Bag Manufacturing.E 2674 Uncoated Paper and Multiwall Bags.

XXXXX Laminated Aluminum Foil Manufacturing for Flexible Packaging Uses.N *3497 Metal Foil and Leaf (laminated aluminum foil rolls and sheets

for flexible packaging uses).

XXXX ... Stationery Product Manufacturing:

XXXXX Die-Cut Paper and Paperboard Office Supply Manufacturing.N *2675 Die-Cut Paper and Paperboard and Cardboard (file folders,

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 Related Product

Manufacturing.

E 2678 Stationery, Tablets, and Related Products.

XXXX ... Other Converted Paper Product Manufacturing:

XXXXX Surface-Coated Paperboard Manufacturing N *2675 Die-Cut Paper and Paperboard and Cardboard (pasted, lined,

laminated, or surface-coated paperboard).

XXXXX Sanitary Paper Product Manufacturing ....... E 2676 Sanitary Paper Products.

XXXXX Other Converted Paper and Paperboard

Product Manufacturing.

R *2675 Die-Cut Paper and Paperboard and Cardboard (die-cut paper

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

2621@ .............................. 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 Similar Products Fiber Can, Tube, Drum, and Similar Product Manufacturing.

2656 ................................. Sanitary Food Containers, Except Folding ............. Non-Folding Sanitary Food Container Manufacturing (pt).

2657 ................................. Folding Paperboard Boxes, Including Sanitary ...... Folding Paperboard Box Manufacturing.

2671@ .............................. Packaging Paper and Plastics Film, Coated and

Laminated Single-Web Paper, Paper Multiweb

Laminated Rolls and Sheets for Packaging

Uses.

Coated and Laminated Packaging Paper and Plastic Film Manufacturing.

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).

2673@ .............................. Plastics, Foil, and Coated Paper Bags: Coated and Laminated Paper Manufacturing (pt).

Coated or Multiweb Laminated Bags .................. Plastic, Foil, and Coated Paper Bag Manufacturing.

Plastics Bags ....................................................... Unsupported Plastic Bag Manufacturing (Included in Rubber

and Plastic Product Manufacturing subsector).

2674 ................................. Uncoated Paper and Multiwall Bags ...................... Uncoated Paper and Multiwall Bag Manufacturing.

2675@ .............................. Die-Cut Paper and Paperboard and Cardboard:

File Folders, Tabulating Cards, and Other Paper

and Paperboard Office Supplies.

Die-Cut Paper and Paperboard Office Supply Manufacturing

(pt).

Pasted, Lined, Laminated, or Surface-Coated

Paperboard.

Surface-Coated Paperboard Manufacturing.

Die-Cut Paper and Paperboard Products, Except

Office Supplies.

Other Converted Paper and Paperboard Product Manufacturing

(pt).

2676 ................................. Sanitary Paper Products ......................................... Sanitary Paper Product Manufacturing.

2677 ................................. Envelopes ............................................................... Envelope Manufacturing.

2678 ................................. Stationery, Tablets, and Related Products ............. Stationery, Tablet, and Related Product Manufacturing.

2679@ .............................. Converted Paper and Paperboard Products, NEC:

Egg Cartons and Other Containers from Purchased Paper.Non-Folding Sanitary Food Container Manufacturing (pt).

Wallpaper and Gift Wrap Paper .......................... Coated and Laminated Paper Manufacturing (pt).

Paper Supplies for Business Machines and

Other Paper Office Supplies.

Die-Cut Paper and Paperboard Office Supply Manufacturing

(pt).

Other Converted Paper and Paperboard Products such as Paper Filters, Crepe Paper, and

Laminated and Tiled Wallboard.

Other Converted Paper and Paperboard Product Manufacturing

(pt).

3497@ .............................. Metal Foil and Leaf:

Laminated Aluminum Foil Rolls and Sheets for

Flexible Packaging Uses.

Laminated Aluminum Foil Manufacturing for Flexible 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
26652 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

TABLE 1

1997 NAICS & U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XX ........ Nonmetallic Mineral Product Manufacturing:

XXX ...... Clay Product and Refractories Manufacturing

Pottery, Ceramics and Plumbing Fixture:

XXXX ... Manufacturing:

XXXXX Vitreous China Plumbing Fixture and China

and Earthenware Fitting and Bathroom

Accessory Manufacturing.

E 3261 Vitreous China Plumbing Fixtures and China and Earthenware

Fittings and Bathroom Accessories.

XXXXX Vitreous China, Fine Earthenware and

Other Pottery Product Manufacturing.

N 3262 Vitreous China Table and Kitchen Articles.

3263 Fine Earthenware (Whiteware) Table and Kitchen Articles.

3269 Pottery Products, NEC.

XXXXX Porcelain Electrical Supply Manufacturing E 3264 Porcelain Electrical Supplies.

XXXX ... Clay Building Material and Refractories Manufacturing:

XXXXX Brick and Structural Clay Tile Manufacturing.E 3251 Brick and Structural Clay Tile.

XXXXX Ceramic Wall and Floor Tile Manufacturing E 3253 Ceramic Wall and Floor Tile.

XXXXX Other Structural Clay Product Manufacturing.E 3259 Structural Clay Products, NEC.

XXXXX Clay Refractory Manufacturing ....................... E 3255 Clay Refractories.

XXXXX Nonclay Refractory Manufacturing .............. E 3297 Nonclay Refractories.

XXX ...... Glass, Glass Product and Glass Container

Manufacturing:

XXXX ... Glass and Glass Product Manufacturing:

XXXXX Flat Glass Manufacturing ............................ E 3211 Flat Glass.

XXXXX Other Pressed and Blown Glass and

Glassware Manufacturing.

E 3229 Pressed and Blown Glass and Glassware, NEC.

XXXXX Glass Product Manufacturing Made of Purchased Glass.E 3231 Glass Products, Made of Purchased Glass.

XXXX ... Glass Container Manufacturing ...................... E 3221 Glass Containers.

XXX ...... Cement and Concrete Product Manufacturing:
26654 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 1—Continued

1997 NAICS & U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XXXX ... Hydraulic Cement Manufacturing ................... E 3241 Cement, Hydraulic.

XXXX ... Ready-Mix Concrete Manufacturing ............... E 3273 Ready-Mixed Concrete.

XXXX ... Concrete Pipe, Brick and Block Manufacturing:

XXXXX Concrete Block and Brick Manufacturing .... E 3271 Concrete Block and Brick.

XXXXX Concrete Pipe Manufacturing ..................... N *3272 Concrete Products, Except Block and Brick (concrete pipe).

XXXX ... Other Precast Concrete Product Manufacturing N *3272 Concrete Products, Except Block 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 Manufacturing R 3275 Gypsum Products.

*3299 Nonmetallic Mineral Products, NEC (moldings, ornamental and

architectural plaster work).

XXX ...... Miscellaneous Nonmetallic Mineral Product

Manufacturing:

XXXX ... Abrasive Product Manufacturing ..................... R *3291 Abrasive Products (except metallic scouring sponges and

scouring pads).

XXXX ... Other Miscellaneous Nonmetallic Mineral

Product Manufacturing:

XXXXX Cut Stone and Stone Product Manufacturing.E 3281 Cut Stone and Stone Products.

XXXXX Ground or Treated Mineral and Earth Manufacturing.E 3295 Minerals and Earths, Ground or Otherwise Treated.

XXXXX Mineral Wool Manufacturing ....................... E 3296 Mineral Wool.

XXXXX All Other Miscellaneous Nonmetallic Mineral Product Manufacturing.R *3272 Concrete Products, Except Block and Brick (dry mixture 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 Glassware, NEC ... Other Pressed and Blown Glass and Glassware Manufacturing.

3231 ................................. Glass Products, Made of Purchased Glass ........... Glass Product Manufacturing Made of 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 and China and

Earthenware Fittings and Bathroom Accessories.

Vitreous China Plumbing Fixture and China and Earthenware

Fitting and Bathroom Accessory Manufacturing.

3262 ................................. Vitreous China Table and Kitchen Articles ............. Vitreous China, Fine Earthenware and Other Pottery Product

Manufacturing (pt).

3263 ................................. Fine Earthenware (Whiteware) Table and Kitchen

Articles.

Vitreous China, Fine Earthenware and 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.

3272@ .............................. 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 Scouring Pads Other Metal Product Manufacturing (pt) (Included in Fabricated

Metal Product Manufacturing subsector).

Other Abrasive Products ..................................... Abrasive Product Manufacturing.

3292@ .............................. Asbestos Products
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26655

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Asbestos Brake Linings and Pads ...................... Motor Vehicle Brake System Manufacturing (pt) (Included in

Transportation Equipment Manufacturing subsector).

Other Asbestos Products .................................... Other Miscellaneous Nonmetallic Mineral Product Manufacturing.

3295 ................................. Minerals and Earths, Ground or Otherwise Treated.Ground or Treated Mineral and Earth Manufacturing.

3296 ................................. Mineral Wool ........................................................... Mineral Wool Manufacturing.

3297 ................................. Nonclay Refractories ............................................... Nonclay Refractory Manufacturing.

3299@ .............................. Nonmetallic Mineral Products, NEC.

Moldings, Ornamental and Architectural Plaster

Work.

Gypsum and Gypsum Product Manufacturing (pt).

Other Nonmetallic Mineral Products ....................... Other Miscellaneous Nonmetallic 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

Accepted Signature Date

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
26656 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

1997 NAICS & U.S.

description

Status

code

1987

SIC

code

1987 SIC description

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 standalone cake ovens).

*3399 Primary Metal Products, NEC (ferrous powder, paste, flakes,

etc.).

XXXXX Electrometallurgical Ferroalloy Product

Manufacturing.

R *3313 Electrometallurgical Products, except Steel (ferroalloys).

XXX ...... Steel Products Made from Purchased Steel:

XXXX ... Iron and Steel Pipe and Tube Manufacturing

from Purchased Steel.

E 3317 Steel Pipe and Tubes.

XXXX ... Rolling and Drawing of Purchased Steel:

XXXXX Cold-Rolled Steel Shape Manufacturing ..... E 3316 Cold-Rolled Steel Sheet, Strip, 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 Aluminum .................... E 3334 Primary Production of Aluminum.

XXXXX Secondary Smelting of Aluminum ............... N *3341 Secondary Smelting and Refining 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, and Foil Manufacturing.E 3353 Aluminum Sheet, Plate, and Foil.

XXXXX Aluminum Extruded Product Manufacturing E 3354 Aluminum Extruded Products.

XXXXX Other Aluminum Rolling and Drawing R 3355 Aluminum Rolling 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 Refining of Copper E 3331 Primary Smelting and Refining of Copper.

XXXXX Primary Smelting and Refining of Nonferrous Metal, Except Copper and Aluminum.E 3339 Primary Smelting and Refining of Nonferrous Metals, Except

Copper and Aluminum.

XXXXX Secondary Smelting and Refining of Nonferrous Metals.R *3313 Electrometallurgical Products, Except Steel (except ferrous 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 Extruding Copper ...... R 3351 Rolling, Drawing, and Extruding of Copper.

XXXXX Drawing of Copper Wire .............................. N *3357 Drawing and Insulating of Nonferrous Wire (copper wire drawing).
26658 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 1—Continued

1997 NAICS & U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XXXX ... Rolling, Drawing, and Extruding of Nonferrous Metal Except Copper or Aluminum.R 3356 Rolling, Drawing, and Extruding of Nonferrous Metals, Except

Copper and Aluminum.

3357* Drawing and Insulating of Nonferrous Wire (wire drawing except copper or aluminum).

XXX ...... Metal Castings:

XXXX ... Ferrous Castings:

XXXXX Gray, Malleable, and Ductile Iron Foundries.R 3321 Gray and Ductile Iron Foundries.

3322 Malleable Iron Foundries.

XXXXX Steel Investment Foundries ........................ E 3324 Steel Investment 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, Except Aluminum E 3364 Nonferrous Die-Castings, Except Aluminum.

XXXXX Aluminum Foundries ................................... E 3365 Aluminum Foundries.

XXXXX Copper Foundries ....................................... E 3366 Copper Foundries.

XXXXX Nonferrous Foundries, Except Aluminum

and Copper.

E 3369 Nonferrous Foundries, Except Aluminum and 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

2819@ .............................. 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).

3312@ .............................. Steel Works, Blast Furnaces (Including Coke

Ovens),and Rolling Mills.

Iron and Steel Mills.

Coke Ovens, not Integrated With Steel Mills Other Petroleum and Coal Product Manufacturing (pt) (Included in Petroleum and Coal Product Manufacturing subsector).

3313@ .............................. Electrometallurgical Products, Except Steel:

Ferroalloys ........................................................... Electrometallurgical Ferroalloy Product Manufacturing.

Nonferrous Alloys ................................................ Secondary Smelting and Refining of Nonferrous Metal (pt).

3315@ .............................. Steel Wiredrawing and Steel Nails and Spikes:

Steel Wire Drawing ............................................. Steel Wire Drawing.

Nails, Spikes, Paper clips, Wire, .........................

Not Made in Wire Drawing Plants ..........................

Miscellaneous Fabricated Wire Product Manufacturing (pt) (Included in Fabricated Metal Product Manufacturing subsector).

3316 ................................. Cold-Rolled Steel Sheet, Strip, and Bars ............... Cold-Rolled Steel Shape 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 Copper .............. Primary Smelting and Refining of Copper (pt).

3334 ................................. Primary Production of Aluminum ............................ Primary Refining of Aluminum.

3339 ................................. Primary Smelting and Refining of Nonferrous Metals, Except Copper and Aluminum.Primary Smelting and Refining of Nonferrous Metals, Except

Copper and Aluminum (pt).

3341@ .............................. 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 of Copper ............ Rolling, Drawing, and Extruding of 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, NEC ..................... Other Aluminum Rolling and Drawing, (pt).

3356 ................................. Rolling, Drawing, and Extruding of Nonferrous

Metals, Except Copper and Aluminum.

Rolling, Drawing, and Extruding of Nonferrous Metals Except

Copper or Aluminum (pt).

3357@ .............................. Drawing and Insulating of Nonferrous Wire:
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26659

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Aluminum Wire Drawing ...................................... Other Aluminum Rolling and Drawing (pt).

Copper Wire Drawing .......................................... Drawing of Copper Wire.

Wire Drawing Except Copper or Aluminum. ....... Rolling, Drawing, and Extruding of Nonferrous Metals Except

Copper or Aluminum (pt).

Communication and Energy Wire—Insulating

Only..

Communication and Energy Wire Manufacturing (Included in

Electrical Equipment, Appliance and Component Manufacturing subsector).

3363 ................................. Aluminum Die-Castings .......................................... Aluminum Die-Castings.

3364 ................................. Nonferrous Die-Castings, Except Aluminum .......... Nonferrous Die-Castings, Except Aluminum.

3365 ................................. Aluminum Foundries ............................................... Aluminum Foundries.

3366 ................................. Copper Foundries ................................................... Copper Foundries.

3369 ................................. Nonferrous Foundries, Except Aluminum and Copper.Nonferrous Foundries, Except Aluminum and Copper.

3398 ................................. Metal Heat Treating ................................................ Metal Heat Treating (Included in Fabricated Metal Product

Manufacturing subsector).

3399@ .............................. Primary Metal Products, NEC:

Ferrous Powder, Paste, Flakes, etc. ................... Steel Mills (pt).

Aluminum Powder, Paste, Flakes, etc. ............... Secondary Smelting of Aluminum (pt).

Other Nonferrous Powder, Paste, Flakes, etc. ... Secondary Smelting and Refining of Nonferrous Metals (pt).

Nonferrous Nails, Brads, Staples, etc. ................ Miscellaneous Fabricated Wire 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 wireinsulating 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.
26660 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

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

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XX ........ Miscellaneous Manufacturing:

XXX ...... Medical Equipment and Supply Manufacturing:

XXXX ... Medical Equipment and Supply Manufacturing:

XXXXX Laboratory Apparatus and Furniture Manufacturing.E 3821 Laboratory Apparatus and Furniture.

XXXXX Surgical and Medical Instrument Manufacturing.E 3841 Surgical and Medical Instruments and Apparatus.

XXXXX Surgical Appliance and Supply Manufacturing.R *2599 Furniture and Fixtures, NEC (hospital beds).

*3829 Measuring and Controlling Devices, NEC (medical thermometers).

*3842 Orthopedic, Prosthetic, and Surgical Appliances and Supplies

(except electronic hearing aids).

XXXXX Dental Equipment and Supply Manufacturing.E 3843 Dental Equipment and Supplies.

XXXXX Ophthalmic Good Manufacturing ................ E 3851 Ophthalmic Goods.

XXXXX Dental Laboratories ..................................... E 8072 Dental Laboratories.

XXXXX Eyeglass and Contact Lens Manufacturing E *5995 Optical Goods Stores (grinding of lenses to prescription).

XXX ...... Cotton Ginning:

XXXX ... Cotton Ginning ................................................ E 0724 Cotton Ginning.

XXX ...... Other Miscellaneous Manufacturing:

XXXX ... Jewelry and Silverware Manufacturing:

XXXXX Jewelry Manufacturing, including Precious

Metal.

R *3469 Metal Stamping, NEC (stamping coins).

*3479 Coating, Engraving, and Allied Services, NEC (silver and plated ware engraving and etching).

3911 Jewelry, Precious Metal.

XXXXX Silverware and Plated Ware Manufacturing R *3479 Coating, Engraving, and Allied Services, NEC (silver and plated ware engraving and etching).

*3914 Silverware, Plated Ware, and Stainless Steel Ware (excludes

nonprecious metal cutlery and flatware).

XXXXX Jewelers’ Material and Lapidary Work Manufacturing.E 3915 Jewelers’ Findings and Materials, and Lapidary Work.

XXXXX Costume Jewelry and Novelty Manufacturing.R *3479 Coating, Engraving, and Allied Services, NEC (costume jewelry engraving and etching).

*3499 Fabricated Metal Products, NEC (trophies of nonprecious metals).

3961 Costume Jewelry and Costume Novelties, Except Precious

Metal.

XXXX ... Sporting and Athletic Good Manufacturing ..... E 3949 Sporting and Athletic Goods, NEC.
26662 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 1—Continued

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XXXX ... Doll, Toy, and Game Manufacturing:

XXXXX Doll and Stuffed Toy Manufacturing ........... E 3942 Dolls and Stuffed Toys.

XXXXX Game, Toy, and Children’s Vehicle Manufacturing.R *3944 Games, Toys, and Children’s Vehicles, Except Dolls and Bicycles (except metal tricycles).

XXXX ... Office Supply , Except Paper, Manufacturing:

XXXXX Pen and Mechanical Pencil Manufacturing E 3951 Pens, Mechanical Pencils, and Parts.

XXXXX Lead Pencil and Art Good Manufacturing ... R *2531 Public Building and Related 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 Manufacturing .................... E 3953 Marking Devices.

XXXXX Carbon Paper and Inked Ribbon Manufacturing.E 3955 Carbon Paper and Inked Ribbons.

XXXX ... All Other Miscellaneous Manufacturing:

XXXXX Musical Instrument Manufacturing .............. E 3931 Musical Instruments.

XXXXX Fastener, Button, Needle, and Pin Manufacturing.E 3965 Fasteners, Buttons, Needles, and Pins.

XXXXX Broom, Brush, and Mop Manufacturing ...... R 3991 Brooms and Brushes.

*2392 Housefurnishings, Except Curtains and Draperies (mops, floor

and dust).

XXXXX Burial Casket Manufacturing .................................. E 3995 Burial Caskets.

XXXXX All Other Miscellaneous Manufacturing ................. R *2499 Wood Products, NEC (wood and 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.

TABLE 2

1987 SIC code 1987 SIC description 1997 U.S. description

0724 ................................. Cotton Ginning ........................................................ Cotton Ginning.

2392@ .............................. Housefurnishings, Except Curtains and Drapes:

Blanket and Wardrobe Bags ............................... Textile Bag Manufacturing (pt) (Included in Textile Mills subsector).

Dusting Rags ....................................................... Other Household Product Mills (pt) (Included in Textile Mills

subsector).

Mops, Floor and Dust .......................................... Broom, Brush and Mop Manufacturing (pt).

Other .................................................................... Other Household Textile Product Mills (pt) (Included in Textile

Mills subsector).

2499 ................................. Wood Products, NEC:

Mirror and Picture Frames .................................. All Other Miscellaneous Manufacturing (pt).

Laundry Hampers Made from Rattan, Reed or

Willow.

Other Furniture Manufacturing (pt) (Included in Furniture Manufacturing subsector).

Wood Laundry Hampers ..................................... Household Wood Furniture Manufacturing, Except Upholstered

(pt) (Included in Furniture Manufacturing subsector).

Wood Tubs and Vats, Jewelry and Cigar Boxes Other Wood Container Manufacturing (pt) (Included in Wood

Product Manufacturing, except Furniture subsector).

Other Wood Products .......................................... Other Wood Product Manufacturing (pt) (Included in Wood

Product Manufacturing, except Furniture subsector).

2531@ .............................. Public Building and Related Furniture:

Blackboards ......................................................... All Other Miscellaneous Manufacturing (pt).

Metal Public Building Furniture ........................... Metal Office Furniture Manufacturing (pt) (Included in Furniture

Manufacturing subsector).

Seats for Motor Vehicles ..................................... Motor Vehicle Fabric Accessory and Seat Manufacturing (pt)

(Included in Transportation Equipment Manufacturing subsector).

Wood Public Building Furniture ........................... Wood Office Furniture Manufacturing (pt) (Included in Furniture

Manufacturing subsector).

Other Public Building Furniture ........................... Other Furniture Manufacturing (pt) (Included in Furniture Manufacturing subsector).

2599@ .............................. Furniture and Fixtures, NEC:

Furniture such as Ship Furniture, Metal Industrial Work Benches and Stools.Other Metal Office Furniture Manufacturing (pt) (Included in

Furniture Manufacturing subsector).

Hospital Beds ...................................................... Surgical Appliance and Supply Manufacturing (pt).

Wood Industrial Work Benches and Stools, and

Other.

Wood Office Furniture Manufacturing (pt) (Included in Furniture

Manufacturing subsector).
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26663

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

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 Utensils, Pots

and Pans for Cooking and Coins.

Metal Stamping and Powder Metallurgical Manufacturing (pt)

(Included in Fabricated Metal Product Manufacturing subsector).

Kitchen Utensils and Pots and Pans for Cooking Kitchen Utensil, Pot and Pan Manufacturing (Included in Fabricated Metal Product Manufacturing subsector).

3479 ................................. Coating, Engraving, and Allied Services, NEC:

Jewelry Engraving and Etching, Costume Jewelry.Costume Jewelry and Novelty Manufacturing (pt).

Jewelry Engraving and Etching, Precious Metal Jewelry Manufacturing, Precious Metal (pt).

Silverware and Flatware Engraving and Etching Silverware and Plated Ware Manufacturing (pt).

Other .................................................................... Metal Coating, Engraving, and Allied Services, Except Jewelry

and Silverware (Included in Fabricated Metal Product Manufacturing subsector).

3499@ .............................. 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 ....................... Household Metal Furniture 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).

3579@ .............................. Office Machines, NEC:

Pencil Sharpeners, Staplers and Other Office

Equipment.

Lead Pencil and Art Good 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 Furniture ....................... Laboratory Apparatus and 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 Controlling Devices .......... Other Measuring and Controlling Device Manufacturing (Included in Computer and Electronic Product Manufacturing

subsector).

3841 ................................. Surgical and Medical Instruments and Apparatus Surgical and Medical Instrument Manufacturing.

3842@ .............................. Orthopedic, Prosthetic, and Surgical Appliances

and Supplies:

Orthopedic, Prosthetic, and Surgical Appliances

and Supplies, except Electronic Hearing Aids.

Surgical Appliance and Supply Manufacturing (pt).

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 Related Irradiation Apparatus.X-Ray Apparatus and Tube Manufacturing (Included in Computer and Electronic Product Manufacturing subsector).

3845 ................................. Electromedical and Electrotherapeutic Apparatus Electromedical Equipment 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 Flatware ...................... Cutlery and Flatware Manufacturing, Except Precious (pt) (Included in Fabricated Metal Product Manufacturing subsector).
26664 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Silverware, Plated Ware, and Stainless Steel

Ware (Except Nonprecious Flatware and Cutlery).

Silverware and Plated Ware Manufacturing.

3915 ................................. Jewelers’ Findings and Materials, and Lapidary

Work.

Jewelers’ Material 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 Parts ...................... Pen and Mechanical Pencil Manufacturing.

3952@ .............................. Lead Pencils, Crayons, and Artists’ Materials:

Drawing and India Ink ......................................... Printing Ink Manufacturing (pt) (Included in Chemical Product

Manufacturing subsector).

Metal Drafting Tables and Boards ...................... Metal Office Furniture Manufacturing (pt) (Included in Furniture

Manufacturing subsector).

Wood Drafting Tables and Boards ...................... Wood Office Furniture Manufacturing (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 Novelties, Except

Precious Metals.

Costume Jewelry and Novelty Manufacturing (pt).

3965 ................................. Fasteners, Buttons, Needles, and Pins .................. Fastener, Button, Needle and Pin Manufacturing.

3991 ................................. Brooms and Brushes .............................................. Broom, Brush and Mop Manufacturing.

3993@ .............................. Signs and Advertising Specialties:

Flexographic Printing of Advertising Specialties Commercial Flexographic Printing (pt) (Included in Printing and

Related Support Activities subsector).

Gravure Printing of Advertising Specialties ........ Commercial Gravure Printing (pt) (Included in Printing and Related Support Activities subsector).

Lithographic Printing of Advertising Specialties Commercial Lithographic Printing (pt) (Included in Printing and

Related Support Activities subsector).

Screen Printing of Advertising Specialties .......... Commercial Screen Printing (pt) (Included in Printing and Related Support Activities subsector).

Other Printing of Advertising Specialties ............ Other Commercial Printing (pt) (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, and Other Hard

Surface Floor Coverings, NEC.

Resilient Floor Coverings Manufacturing (pt) (Included in Rubber and Plastic Product Manufacturing subsector).

3999@ .............................. 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, Scraping, Tanning and

Dyeing.

Leather and Hide Tanning and Finishing Manufacturing (pt) (Included in Leather and Allied Product Manufacturing subsector).

Lamp Shades of Paper and Textile .................... Other Lighting Equipment 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, Hair Curlers,

etc.

All Other Fabricated Metal Product Manufacturing (pt) (Included in Fabricated Metal Product Manufacturing subsector).

Plastics Products, such as Combs, Hair Curlers,

etc.

All Other Plastic Product Manufacturing (pt) (Included in Rubber and Plastic Product Manufacturing subsector).

Flexographic Printing Eyeglass Frames for the

Trade.

Commercial Flexographic Printing (pt) (Included in Printing and

Related Support Activities subsector).

Gravure Printing Eyeglass Frames for the Trade Commercial Gravure Printing (pt) (Included in Printing and Related Support Activities subsector).
Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices 26665

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Lithographic Printing Eyeglass Frames for the

Trade.

Commercial Lithographic Printing (pt) (Included in Printing and

Related Support Activities subsector).

Screen Printing Eyeglass Frames for the Trade Commercial Screen Printing (pt) (Included in Printing and Related Support Activities subsector).

Other Printing Eyeglass Frames for the Trade ... Other Commercial Printing (pt) (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 prescription only ............... Eyeglass and Contact Lens 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
26666 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

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

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.

The industries have high

specialization ratios, and they are

economically significant. Some are

much larger than others, but this was

necessitated to make them homogenous

in terms of production process. The

classification is still suitable for

sampling, data-publishing and other

aspects of survey operations.

Disruptions to time series are minimal.

The statistical agencies can develop

statistical ‘‘links’’, to enable the retabulation of time series on the new

NAICS classification structure.

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 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.

TABLE 1

1997 NAICS and U.S.

description

Status

code

1987

SIC

code

1987 SIC description

XX ........ Postal Service:

XXX ...... Postal Service:

XXXX ... Postal Service:

XXXXX National Postal Service ............................... E 4311 United States Postal Service.

XXXXX Contract Postal Operations, Excluding Bulk

Mail Transportation.

N *7389 Business Services, Not Elsewhere Classified (Postal Service

contract operations).

XX ........ Couriers:

XXX ...... Couriers:

XXXX ... Couriers .......................................................... R *4215 Courier Services, Except by Air (hub and spoke intercity delivery).

4513 Air Courier Services.

XXX ...... Local Messengers and Local Delivery:

XXXX ... Local Messengers and Local Delivery ............ N *4215 Courier Services, Except by Air (local delivery).

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

4215@ .............................. Couriers Services Except by Air:
26668 Federal Register / Vol. 61, No. 103 / Tuesday, May 28, 1996 / Notices

TABLE 2—Continued

1987 SIC code 1987 SIC description 1997 U.S. description

Hub and Spoke Intercity Delivery ....................... Couriers (pt).

Local Delivery ...................................................... Local Messengers and Local Delivery.

4311 ................................. United States Postal Service .................................. National Postal Service.

4513@ .............................. 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