Document ID: EPA-HQ-TRI-2002-0003-0013
Agency: epa
Document Type: Proposed Rule
Title: 1997 North American Industry Classification System -- 1987 Standard Industrial Classification Replacement
Posted Date: 2005-06-28T04:00Z

[
Federal
Register:
April
9,
1997
(
Volume
62,
Number
68)]
[
Notices]
[
Page
17287­
17337]
From
the
Federal
Register
Online
via
GPO
Access
[
wais.
access.
gpo.
gov]
[
DOCID:
fr09ap97_
dat­
172]

[[
Page
17287]]

_______________________________________________________________________

Part
II
Office
of
Management
and
Budget
_______________________________________________________________________

1997
North
American
Industry
Classification
System­­
1987
Standard
Industrial
Classification
Replacement;
Notice
[[
Page
17288]]

OFFICE
OF
MANAGEMENT
AND
BUDGET
1997
North
American
Industry
Classification
System­­
1987
Standard
Industrial
Classification
Replacement
AGENCY:
Office
of
Management
and
Budget,
Executive
Office
of
the
President.

ACTION:
Notice
of
final
decision.

­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­

SUMMARY:
This
notice
presents
the
Office
of
Management
and
Budget's
final
decisions
for
the
adoption
of
the
North
American
Industry
Classification
System
(
NAICS)
for
the
United
States,
a
new
economic
classification
system
that
replaces
the
1987
Standard
Industrial
Classification
(
SIC)
for
statistical
purposes.
NAICS
is
a
system
for
classifying
establishments
by
type
of
economic
activity.
Its
purposes
are:
(
1)
to
facilitate
the
collection,
tabulation,
presentation,
and
analysis
of
data
relating
to
establishments,
and
(
2)
to
promote
uniformity
and
comparability
in
the
presentation
of
statistical
data
describing
the
economy.
NAICS
will
be
used
by
Federal
statistical
agencies
that
collect
or
publish
data
by
industry.
It
is
also
expected
to
be
widely
used
by
State
agencies,
trade
associations,
private
businesses,
and
other
organizations.
The
Instituto
Nacional
de
Estadistica,
Geografia
e
Informatica
(
INEGI)
of
Mexico,
Statistics
Canada,
and
the
United
States
Office
of
Management
and
Budget
(
OMB),
through
its
Economic
Classification
Policy
Committee
(
ECPC),
have
collaborated
on
NAICS
to
make
the
industrial
statistics
produced
in
the
three
countries
comparable.
NAICS
is
the
first
industry
classification
system
developed
in
accordance
with
a
single
principle
of
aggregation,
the
principle
that
producing
units
that
use
similar
production
processes
should
be
grouped
together
in
the
classification.
The
fresh
view
of
establishment
data
that
this
restructuring
will
provide
should
engender
insights
into
the
increasingly
interrelated
evolution
of
our
economies.
NAICS
also
reflects
in
a
much
more
explicit
way
the
enormous
changes
in
technology
and
in
the
growth
and
diversification
of
services
that
have
marked
recent
decades.
Industry
statistics
compiled
using
NAICS
will
also
be
comparable
with
statistics
compiled
according
to
the
latest
revision
of
the
United
Nations'
International
Standard
Industrial
Classification
(
ISIC,
Revision
3)
for
some
sixty
high
level
groupings.
NAICS
will
provide
a
consistent
framework
for
the
collection,
tabulation,
presentation,
and
analysis
of
industrial
statistics
used
by
government
policy
analysts,
by
academics
and
researchers,
by
the
business
community,
and
by
the
public.
Because
of
differing
national
economic
and
institutional
structures
as
well
as
limited
resources
and
time
for
constructing
NAICS,
however,
the
NAICS
structure
has
not
been
made
entirely
comparable
at
the
individual
industry
level
across
all
three
countries.
For
some
sectors
and
subsectors,
the
statistical
agencies
of
the
three
countries
have
agreed
to
harmonize
NAICS
based
on
sectoral
boundaries
rather
than
on
a
detailed
industry
structure.
Those
sectors
or
subsectors
are:
utilities;
construction;
wholesale
trade;
retail
trade;
finance
and
insurance;
real
estate;
waste
management
and
remediation
services;
other
services
that
include
personal
and
laundry
services,
and
religious,
grantmaking,
civic,
and
professional
and
similar
organizations;
and
public
administration.
To
ensure
comparability
between
Canada
and
the
United
States,
the
two
countries
have
agreed
on
an
industry
structure
and
hierarchy
for
each
sector
listed
above
except
for
construction,
wholesale
trade,
and
public
administration.
In
some
cases
within
these
sectors,
the
United
States
will
provide
for
additional
industries
at
the
national
level
to
reflect
important
industries
in
the
United
States
that
will
not
be
shown
separately
in
Canada.
To
distinguish
the
three
countries'
versions
of
NAICS,
they
are
called
NAICS
Canada,
NAICS
Mexico
(
SCIAN
Mexico,
in
Spanish),
and
NAICS
United
States.
In
developing
NAICS
United
States,
OMB
has
published
a
total
of
seven
previous
Federal
Register
notices
advising
the
public
of
the
work
of
the
ECPC
and
seeking
comment
on
that
work.
The
March
31,
1993,
Federal
Register
notice
(
pp.
16990­
17004)
announced
OMB's
intention
to
revise
the
SIC
for
1997,
the
establishment
of
the
Economic
Classification
Policy
Committee,
and
the
process
for
revising
the
SIC.
The
July
26,
1994,
Federal
Register
notice
(
pp.
38092­
38096)
set
forth
the
concepts
for
the
new
system
and
the
decision
to
develop
NAICS
in
cooperation
with
Statistics
Canada
and
INEGI.
That
notice
also
included
a
request
for
the
public
to
submit
recommendations
for
the
industries
to
be
included
in
the
new
system.
The
deadline
for
submitting
proposals
for
new
or
revised
industries
was
November
7,
1994.
After
considering
all
proposals
from
the
public,
consulting
with
a
large
number
of
U.
S.
data
users
and
industry
groups,
and
undertaking
extensive
discussions
with
INEGI
and
Statistics
Canada,
a
new
industrial
structure
for
NAICS
that
would
apply
to
all
three
North
American
countries
was
developed.
A
series
of
five
Federal
Register
notices
sought
comment
on
the
structure
of
the
system.
These
notices
are
described
in
more
detail
in
the
SUPPLEMENTARY
INFORMATION
section
below.
As
intimated
by
the
description
below
of
the
NAICS
development
process,
the
actual
classification
presented
at
the
end
of
this
notice
in
Tables
1
and
2
reveals
only
the
tip
of
the
work
carried
out
by
dedicated
individuals
from
INEGI,
Statistics
Canada,
and
U.
S.
statistical
agencies.
It
is
through
their
efforts,
painstaking
analysis,
and
spirit
of
accommodation
that
NAICS
has
emerged
as
a
harmonized
international
classification
of
economic
activities.
This
has
been
an
immense
undertaking
that
has
required
the
time,
energy,
creativity,
and
cooperation
of
numerous
people
and
organizations
throughout
the
three
countries.
The
work
that
has
been
accomplished
is
a
testament
to
the
individual
and
collective
willingness
of
many
persons
and
organizations
both
inside
and
outside
government
to
contribute
to
the
development
of
NAICS.

EFFECTIVE
DATE:
Federal
statistical
data
published
for
reference
years
beginning
on
or
after
January
1,
1997,
will
be
published
using
the
new
NAICS
United
States
codes.
NAICS
is
scheduled
to
go
into
effect
in
1997
in
Canada
and
the
United
States,
and
in
1998
in
Mexico.
Publication
of
the
1997
NAICS
United
States
Manual
is
planned
for
December
1997.
Use
of
NAICS
for
nonstatistical
purposes
(
e.
g.,
administrative,
regulatory,
or
taxation)
will
be
determined
by
the
agency
or
agencies
that
have
chosen
to
use
the
SIC
for
nonstatistical
purposes.
Readers
interested
in
the
effective
dates
for
the
use
of
NAICS
for
nonstatistical
purposes
should
contact
the
relevant
agency
to
determine
its
plans,
if
any,
for
a
transition
from
use
of
the
SIC
to
NAICS.

ADDRESSES:
Please
send
correspondence
about
the
final
decisions
to:
Katherine
K.
Wallman,
Chief
Statistician,
Office
of
Management
and
Budget,
New
Executive
Office
Building,
725
17th
Street,
NW.,
Room
10201,
Washington,
D.
C.
20503,
telephone
number:
(
202)
395­
3093,
FAX
number:
(
202)
395­
7245.

ELECTRONIC
AVAILABILITY
AND
CORRESPONDENCE:
This
document
is
available
on
the
Internet
from
the
Census
Bureau
Internet
site
via
WWW
browser,
ftp,
and
E­
mail.
To
obtain
this
document
via
WWW
browser,
connect
to
  
http://
www.
census.
gov''
then
select
  
Subjects
A
to
Z,''
then
select
  
N,''
then
select
[[
Page
17289]]

  
NAICS
(
North
American
Industry
Classification
System).''
This
WWW
page
contains
previous
NAICS
United
States
Federal
Register
notices
and
related
documents
as
well.
To
obtain
this
document
via
ftp,
log
into
ftp.
census.
gov
as
anonymous,
and
retrieve
the
files
  
naicsfr8.
pdf,''
  
naicsfr8tbl1.
pdf,''
and
  
naicsfr8tbl2.
pdf''
from
the
  /
pub/
epcd/
naics''
directory.
(
That
directory
also
contains
previous
NAICS
United
States
Federal
Register
notices
and
related
documents.)
To
obtain
this
document
via
Internet
E­
mail,
send
a
message
to
majordomo@
census.
gov
with
the
body
text
as
follows:
  
get
gatekeeper
naics.
txt''.
Instructions
for
obtaining
this
and
other
NAICS
United
States
documents
will
be
delivered
as
a
message
attachment.
Correspondence
may
be
sent
via
Internet
E­
mail
to
OMB
at
naics@
a1.
eop.
gov
(
do
not
include
any
capital
letters
in
the
address).

FOR
FURTHER
INFORMATION
CONTACT:
Paul
Bugg,
10201
New
Executive
Office
Bldg.,
Washington,
D.
C.
20503,
E­
mail
address:
bugg__
p@
a1.
eop.
gov,
telephone
number:
(
202)
395­
3093,
FAX
number:
(
202)
395­
7245.
Inquiries
about
the
content
of
industries
or
requests
for
electronic
copies
of
the
tables
should
be
made
to
Carole
Ambler,
Coordinator,
Economic
Classification
Policy
Committee,
Bureau
of
the
Census,
Room
2633­
3,
Washington,
D.
C.
20233,
E­
mail
address:
cambler@
ccmail.
census.
gov,
telephone
number:
(
301)
457­
2668,
FAX
number:
(
301)
457­
1343.

SUPPLEMENTARY
INFORMATION:

NAICS
Development
Process
The
Standard
Industrial
Classification
(
SIC)
was
originally
developed
in
the
1930'
s
to
classify
establishments
by
the
type
of
activity
in
which
they
are
primarily
engaged
and
to
promote
the
comparability
of
establishment
data
describing
various
facets
of
the
U.
S.
economy.
The
SIC
covers
the
entire
field
of
economic
activities
by
defining
industries
in
accordance
with
the
composition
and
structure
of
the
economy.
Over
the
years,
it
was
revised
periodically
to
reflect
the
economy's
changing
industry
composition
and
organization.
OMB
last
updated
the
SIC
in
1987.
In
recent
years,
rapid
changes
in
both
the
U.
S.
and
world
economies
brought
the
SIC
under
increasing
criticism.
The
1991
International
Conference
on
the
Classification
of
Economic
Activities
provided
a
forum
for
exploring
the
issues
and
for
considering
new
approaches
to
classifying
economic
activity.
In
July
1992,
the
Office
of
Management
and
Budget
established
the
Economic
Classification
Policy
Committee
chaired
by
the
Bureau
of
Economic
Analysis,
U.
S.
Department
of
Commerce,
with
representatives
from
the
Bureau
of
the
Census,
U.
S.
Department
of
Commerce,
and
the
Bureau
of
Labor
Statistics,
U.
S.
Department
of
Labor.
OMB
charged
the
ECPC
with
conducting
a
  
fresh
slate''
examination
of
economic
classifications
for
statistical
purposes
and
determining
the
desirability
of
developing
a
new
industry
classification
system
for
the
United
States
based
on
a
single
economic
concept.
A
March
31,
1993,
Federal
Register
notice
(
pp.
16990­
17004)
announced
OMB's
intention
to
revise
the
SIC
for
1997,
the
establishment
of
the
Economic
Classification
Policy
Committee,
and
the
process
for
revising
the
SIC.
The
ECPC
published
six
issue
papers
relating
to
industrial
classification
for
comment.
Those
papers
are
as
follows:

Issues
Paper
No.
1­­
Conceptual
Issues
Issues
Paper
No.
2­­
Aggregation
Structures
and
Hierarchies
Issues
Paper
No.
3­­
Collectibility
of
Data
Issues
Paper
No.
4­­
Criteria
for
Determining
Industries
Issues
Paper
No.
5­­
The
Impact
of
Classification
Revisions
on
Time
Series
Issues
Paper
No.
6­­
Services
Classifications
In
addition
to
these
issue
papers,
two
research
reports
were
published
providing
further
information
on
industry
classifications.
The
first
report
was
part
of
a
comparative
review
of
Canadian
and
U.
S.
SIC
concepts.
The
ECPC
and
Statistics
Canada
reviewed
the
existing
structure
of
detailed
  
4­
digit''
industries
in
the
1987
U.
S.
SIC
and
the
1980
Canadian
SIC
for
conformance
to
economic
concepts.
The
results
of
the
U.
S.
review
are
contained
in
ECPC
Report
No.
1,
  
Economic
Concepts
Incorporated
in
the
Standard
Industrial
Classification
Industries
of
the
United
States,''
and
the
Canadian
results
are
contained
in
  
The
Conceptual
Basis
of
the
Standard
Industrial
Classification,''
Standards
Division,
Statistics
Canada.
The
second
ECPC
report
evaluated
U.
S.
industries
using
the
new
  
index
of
heterogeneity''
to
assess
whether
establishments
in
existing
1987
4­
digit
industries
met
the
conditions
for
the
production­
oriented
classification
concept,
as
presented
in
ECPC
Issues
Paper
No.
1.
The
ECPC
Report
No.
2
is
titled
  
The
Heterogeneity
Index:
A
Quantitative
Tool
to
Support
Industrial
Classification.''
A
July
26,
1994,
Federal
Register
notice
(
pp.
38092­
38096)
announced
that
the
ECPC
was
developing
NAICS
in
cooperation
with
INEGI
and
Statistics
Canada
and
proposed
that
NAICS
replace
the
1980
Canadian
SIC,
the
Mexican
Classification
of
Activities
and
Products
(
1994)
(
CMAP),
the
industry
classification
system
of
Mexico,
and
the
1987
SIC
in
the
United
States.
The
notice
requested
comments
on
that
proposal
and
on
the
structure
of
the
new
system.
That
notice
also
included
the
concepts
of
the
new
system
and
the
principles
upon
which
the
three
countries
proposed
to
develop
NAICS,
as
follows:
(
1)
NAICS
will
be
erected
on
a
production­
oriented,
or
supply­
based,
conceptual
framework.
This
means
that
producing
units
that
use
identical
or
similar
production
processes
will
be
grouped
together
in
NAICS.
(
2)
The
system
will
give
special
attention
to
developing
production­
oriented
classifications
for
(
a)
new
and
emerging
industries,
(
b)
service
industries
in
general,
and
(
c)
industries
engaged
in
the
production
of
advanced
technologies.
(
3)
Time
series
continuity
will
be
maintained
to
the
extent
possible.
However,
changes
in
the
economy
and
proposals
from
data
users
must
be
considered.
In
addition,
adjustments
will
be
required
for
sectors
where
Canada,
Mexico,
and
the
United
States
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.
In
response
to
the
July
26,
1994,
Federal
Register
notice,
the
ECPC
received
125
public
responses
to
the
call
for
proposals
for
new
and
revised
industries,
plus
8
responses
from
6
State
government
agencies,
and
9
responses
from
6
Federal
Government
agencies.
These
formal
responses
contained
several
hundred
proposals.
Additional
proposals
and
suggestions
for
change
arose
from
the
extensive
ECPC
public
outreach
program,
which
consisted
of
meetings
and
other
communications
with
industry,
data
user,
and
data
respondent
groups.
Other
proposals
for
modifications
such
as
changing
industry
definitions
and
clarifying
boundaries,
came
from
U.
S.
statistical
agency
personnel
who
worked
on
NAICS,
reflecting
accumulated
public
[[
Page
17290]]
comments
and
criticism,
over
a
number
of
years,
of
the
U.
S.
SIC
system.
The
ECPC
also
received
a
number
of
proposals
to
eliminate
U.
S.
industries,
or
to
combine
them
with
other
industries.
Comments
to
the
ECPC
from
these
sources
ranged
over
many
aspects
of
the
1987
SIC
system.
For
example,
approximately
20
percent
of
the
formal
letters
received
concerned
ambiguities
in
the
titles
and
definitions
of
the
1987
SIC
industries,
and
incomplete
or
out­
of­
date
product
lists.
More
than
40
respondents
requested
better­
defined
product
detail
within
existing
industries,
without
necessarily
requesting
changes
to
industry
boundaries.
These
product­
oriented
requests
and
suggestions
are
being
handled
through
the
redesign
of
forms
where
product
information
is
collected
in
the
1997
Economic
Censuses.
Another
group
of
responses
to
the
notice
were
proposals
for
a
  
separate,
market­
oriented
product
grouping
system''
(
July
26,
1994,
Federal
Register,
p.
38095).
These
proposals
were
submitted
as
industry
proposals
but,
after
analysis
by
the
ECPC,
were
found
more
appropriately
to
be
market­
oriented
product
groupings,
and
have
been
held
over
for
action
during
production
of
the
product
coding
system
discussed
below.
Proposals
were
also
received
for
changing
or
modifying
the
boundaries
of
existing
industries,
without
necessarily
creating
a
new
industry.
In
addition,
changes
to
1987
SIC
industry
definitions
were
frequently
required
to
bring
about
compatibility
with
the
Canadian
and
Mexican
classifications
(
as
were
corresponding
changes
in
those
countries'
classification
systems).
Those
changes
are
listed
and
described
in
five
Federal
Register
notices
that
portray
portions
of
the
proposed
NAICS
United
States
system.
These
notices
are
described
more
fully
below.
Some
changes
that
were
required
for
international
compatibility
interacted
with
proposed
changes
from
the
U.
S.
public,
and
in
some
cases
the
two
kinds
of
changes
resulted
in
a
broader
rethinking
of
the
entire
portion
of
the
structure.
The
ECPC
established
seven
subcommittees
composed
of
senior
economists,
statisticians,
and
classification
specialists
representing
14
of
the
Federal
agencies
that
use
the
SIC.
Subcommittees
were
established
for
Agriculture;
Mining
and
Manufacturing;
Construction;
Distribution
Networks
(
retail
trade;
wholesale
trade;
and
transportation,
communications,
and
utilities);
Finance,
Insurance,
and
Real
Estate;
Business
and
Personal
Services;
and
Health,
Social
Assistance,
and
Public
Administration.
They
were
responsible
for
developing
the
proposed
structure
of
NAICS
in
cooperation
with
representatives
from
INEGI
and
Statistics
Canada.
The
ECPC
also
established
the
U.
S.
Coordinating
Committee
that
was
responsible
for
coordinating
the
work
of
the
U.
S.
subcommittees
and
the
work
with
INEGI
and
Statistics
Canada.
The
structure
of
NAICS
was
developed
in
a
series
of
meetings
among
the
three
countries.
Public
proposals
for
individual
industries
from
all
three
countries
were
considered
for
acceptance
if
the
proposed
industry
was
based
on
the
production­
oriented
concept
of
NAICS.
As
groups
of
subsectors
of
NAICS
were
completed
and
agreed
upon
by
the
three
countries,
the
ECPC
published
the
proposed
industries
for
those
subsectors
for
public
comment
in
the
Federal
Register.
Five
successive
Federal
Register
notices
were
published
asking
for
comment.
A
first
notice
published
in
the
Federal
Register,
July
26,
1995
(
pp.
38436­
38452),
requested
comment
on
proposed
industry
structures
for
petroleum
and
coal
product
manufacturing,
chemical
manufacturing,
and
rubber
and
plastics
manufacturing;
for
broadcasting
and
telecommunications;
and
for
food
services
and
drinking
places
and
accommodations.
A
second
Federal
Register
notice
published
on
February
6,
1996
(
pp.
4524­
4578),
requested
comment
on
proposed
industry
structures
for
crop
production,
animal
production,
forestry
and
logging;
textile
mills,
textile
product
mills,
apparel
manufacturing,
and
leather
and
allied
product
manufacturing;
food
manufacturing
and
beverage
and
tobacco
product
manufacturing;
fabricated
metal
product
manufacturing;
machinery
manufacturing;
electrical
equipment,
appliance
and
component
manufacturing;
and
transportation
equipment
manufacturing.
A
third
Federal
Register
notice
published
on
May
28,
1996
(
pp.
26558­
26668),
requested
comment
on
proposed
industry
structures
for
health
and
social
assistance;
educational
services;
computers
and
electronics
product
manufacturing;
furniture
manufacturing;
printing
and
related
support
activities;
professional,
technical
and
scientific
services;
performing
arts,
spectator
sports
and
related
industries;
museums,
historical
sites
and
similar
institutions;
recreation,
amusement
and
gambling;
information;
wood
product
manufacturing,
except
furniture;
rental
and
leasing;
repair
and
maintenance;
management
and
support;
transportation;
mining;
paper
manufacturing;
nonmetallic
minerals
manufacturing;
primary
metal
manufacturing;
miscellaneous
manufacturing;
and
postal
service
and
couriers.
A
fourth
Federal
Register
notice
published
on
July
5,
1996
(
pp.
35384­
35515),
requested
comment
on
proposed
industry
structures
for
finance
and
insurance;
wholesale
trade;
retail
trade;
construction;
utilities;
waste
management
and
remediation
services;
real
estate;
lessors
of
other
nonfinancial
assets;
personal
and
laundry
services;
and
religious,
grant
making,
civic,
and
other
membership
organizations.
That
notice
also
requested
comments
on
the
proposed
hierarchy
and
coding
system
for
NAICS.
Finally,
a
fifth
Federal
Register
notice
published
on
November
5,
1996
(
pp.
57006­
57183),
announced
the
ECPC's
final
recommendations
to
OMB
for
the
complete
structure
of
NAICS
United
States,
including
the
hierarchy
and
coding
system,
and
asked
for
public
comments.
Final
comments
were
due
on
December
20,
1996.
Changes
incorporated
into
the
new
system
based
on
comments
in
response
to
the
November
5,
1996,
notice
are
presented
in
the
section
below
containing
OMB's
Final
Decisions.
In
response
to
those
notices,
the
ECPC
received
approximately
400
additional
comments.
A
significant
number
of
these
comments
supported
the
development
of
NAICS,
expressed
the
view
that
NAICS
is
a
significant
improvement
over
the
SIC
system,
or
supported
the
inclusion
in
NAICS
of
specific
industries.
Other
comments
requested
clarification
of
a
concept
or
industry
title.
Of
the
few
who
commented
on
the
proposed
coding
system,
over
one­
half
supported
the
6­
digit
system
that
has
been
adopted.
Over
one­
half
of
the
comments
received
requested
changes
to
the
proposed
system.
Some
of
these
proposed
changes
were
requests
for
new
or
revised
industries
even
though
the
deadline
for
receiving
such
requests
was
November
7,
1994.
However,
the
ECPC
did
consider
these
new
requests.
There
were
also
requests
for
title
changes.
Each
comment
was
carefully
considered,
as
were
comments
received
by
INEGI
and
Statistics
Canada.
After
consultation
with
INEGI
and
Statistics
Canada,
changes
based
on
the
comments
were
incorporated
into
the
ECPC's
final
recommendations
to
OMB
for
NAICS
United
States
as
presented
in
the
November
5,
1996,
Federal
Register
notice
(
pp.
57006­
57183).

NAICS
Structure
NAICS
is
organized
in
a
hierarchical
structure,
much
like
the
existing
U.
S.

[[
Page
17291]]

SIC.
The
1987
SIC
employs
a
4­
digit
coding
system,
in
which
the
first
two
digits
designate
a
  
major
group''
that
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
U.
S.
SIC,
the
two
digits
26
designate
the
major
group
for
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.''
NAICS
employs
a
6­
digit
coding
system
in
which
the
first
two
digits
designate
the
sector
(
the
NAICS
term
  
sector''
is
replacing
the
term
  
division''
used
in
the
1987
SIC),
the
third
digit
designates
the
subsector,
the
fourth
digit
designates
the
industry
group,
the
fifth
digit
represents
the
NAICS
industry
(
the
most
detailed
level
at
which
comparable
data
will
be
available
for
Canada,
Mexico,
and
the
United
States),
and
the
sixth
digit
designates
individual
country­
level
national
industries.
Using
the
paper
mill
example
above,
in
NAICS
United
States
industry
322121
the
two
initial
digits
32
designate
a
manufacturing
sector
and
the
three
digits
322
designate
the
paper
manufacturing
subsector.
Within
322
is
the
industry
group
3221,
Pulp,
Paper,
and
Paperboard
Mills,
within
which
is
NAICS
industry
32212,
Paper
Mills.
There
are
two
U.
S.
national
industries
under
Paper
Mills:
322121,
Paper
(
except
Newsprint)
Mills,
and
322122,
Newsprint
Mills.
The
NAICS
coding
system
was
expanded
to
six
digits
from
the
four
digits
used
in
the
SIC
for
two
reasons.
First,
it
is
desirable
that
the
first
character
or
characters
in
a
coding
system
designate
the
sector.
A
modern
economy
is
too
complex
to
be
described
adequately
with
the
nine
or
ten
sectors
permitted
by
using
only
a
single
digit
in
a
coding
system.
For
example,
NAICS
has
20
sectors.
Accordingly,
the
first
two
digits
are
used
to
designate
the
sector
in
NAICS.
Second,
the
NAICS
agreements
among
the
ECPC,
INEGI,
and
Statistics
Canada
permit
each
country
to
designate
detailed
industries,
below
the
level
of
a
five­
digit
NAICS
industry,
to
meet
national
needs.
The
United
States
will
have
such
national
industry
detail
in
many
places
in
the
new
classification.
The
sixth
digit
in
the
NAICS
United
States
codes
designates
the
U.
S.
detailed
national
industries.
Thus
NAICS
will
have
a
six­
digit
coding
system
in
which
the
first
two
digits
designate
the
NAICS
sector,
and
the
third,
fourth,
fifth,
and
sixth
digits
designate,
respectively,
the
NAICS
subsector,
industry
group,
and
industry,
and
U.
S.
national
industry
(
if
any).
Although
the
1997
NAICS
United
States
industries
will
now
have
six
digits
compared
with
four
digits
for
1987
U.
S.
SIC
industries,
there
will
not
be
a
uniform
corresponding
increase
in
classification
detail
that
the
1997
NAICS
United
States
provides
compared
with
the
1987
U.
S.
SIC.
As
explained
above,
the
two
additional
digits
primarily
allow
for
more
sectors
and
for
individual
country­
level
detailed
national
industries.

NAICS
United
States
Highlights
The
1987
U.
S.
SIC
(
excluding
Nonclassifiable
Establishments)
includes
10
divisions
subdivided
into
1004
4­
digit
industries,
of
which
125
are
nonmanufacturing
goods
producing
industries
(
agriculture,
mining,
construction,
and
electric,
natural
gas,
and
water
utility
industries);
459
are
manufacturing
industries;
and
420
are
service
producing
industries.
In
contrast,
the
1997
NAICS
United
States
(
excluding
Unclassified
Establishments)
has
20
sectors
subdivided
into
1174
5­
digit
and/
or
6­
digit
industries,
of
which
132
are
nonmanufacturing
goods
producing
industries
(
agriculture,
mining,
construction,
and
electric,
natural
gas,
and
water
utility
industries);
473
are
manufacturing
industries;
and
569
are
service
producing
industries.
Most
of
the
170
industry
increase
between
the
1987
U.
S.
SIC
and
the
1997
NAICS
United
States
is
in
the
service
producing
industries
with
a
net
increase
of
149
industries,
although
there
are
net
increases
of
seven
industries
in
the
Agriculture,
Forestry,
Hunting,
and
Fishing
sector;
one
in
Utilities;
two
in
Construction;
and
14
in
Manufacturing.
There
is
a
net
decrease
of
three
industries
in
Mining.
Most
of
the
changes
in
the
Agriculture,
Forestry,
Hunting,
and
Fishing
sector
and
the
Mining
sector
are
the
result
of
changes
necessary
to
achieve
comparability
with
Canada
and
Mexico.
The
Utilities
sector
was
reorganized
to
reflect
the
changing
regulatory
and
technological
structure
of
the
industries
within
that
sector.
The
Manufacturing
sector
was
reorganized
to
promote
international
comparability
and
to
recognize
technological
changes
occurring
in
that
sector.
For
example,
a
new
subsector,
Computer
and
Electronic
Product
Manufacturing,
was
created
to
bring
together
industries
producing
electronic
products
and
their
components.
The
manufacture
of
computers,
communications
equipment,
audio
and
video
equipment,
and
semiconductors
is
grouped
into
the
same
subsector
because
of
the
inherent
technological
similarities
of
their
production
processes,
and
the
likelihood
that
these
technologies
will
continue
to
converge
in
the
future.
An
important
change
is
that
the
reproduction
of
packaged
software
is
placed
in
this
sector,
rather
than
in
the
services
sector,
because
the
reproduction
of
packaged
software
is
a
manufacturing
process,
and
the
product
moves
through
the
wholesale
and
retail
distribution
systems
like
any
other
manufactured
product.
NAICS
acknowledges
the
importance
of
these
electronic
industries,
their
rapid
growth
over
the
past
several
years,
and
the
likelihood
that
these
industries
will,
in
the
future,
become
even
more
important
in
the
economies
of
the
three
North
American
countries.
NAICS
creates
a
new
sector,
Information,
that
groups
industries
that
primarily
create
and
disseminate
products
with
intellectual
property
content.
In
addition,
the
NAICS
Information
sector
brings
together
those
activities
that
transform
information
into
a
commodity
that
is
produced
and
distributed,
and
activities
that
provide
the
means
for
distributing
those
products,
other
than
through
traditional
wholesale­
retail
distribution
channels.
A
few
of
the
newly
revised
industries
in
this
sector
include:
database
and
directory
publishers;
software
publishers;
music
publishers;
paging
services;
cellular
and
other
wireless
telecommunications
services;
telecommunications
resellers;
and
satellite
telecommunications.
Also
included
in
the
Information
sector
are
newspaper,
periodical,
and
book
publishers
(
but
not
printing,
which
is
still
included
in
manufacturing);
motion
picture
and
sound
recording
industries;
and
libraries
and
archives.
There
are
34
industries
in
the
Information
sector,
20
of
which
are
new.
NAICS
divides
the
1987
SIC
Services
division
into
eight
new
sectors.
One
of
the
new
sectors
is
the
Professional,
Scientific
and
Technical
Services
sector,
which
comprises
establishments
engaged
in
activities
where
human
capital
is
the
major
input.
The
industries
within
this
sector
are
defined
by
the
expertise
and
training
of
the
service
provider.
The
sector
includes
such
industries
as
offices
of
lawyers;
engineering
services;
environmental
consulting
services;
advertising
agencies;
and
translation
and
interpretation
services.
Forty­
eight
industries
comprise
this
sector,
29
of
which
are
recognized
for
the
first
time.
The
new
sector,
Health
Care
and
Social
Assistance,
recognizes
the
merging
of
the
boundaries
of
health
care
and
social
assistance.
The
industries
in
[[
Page
17292]]

this
new
sector
are
arranged
in
an
order
that
reflects
the
range
and
extent
of
health
care
and
social
assistance
provided.
Some
new
industries
are
family
planning
centers,
out­
patient
mental
health
and
substance
abuse
centers,
HMO
medical
centers,
diagnostic
imaging
centers,
continuing
care
retirement
communities,
and
homes
for
the
elderly.
This
sector
has
39
industries,
27
of
which
are
new.
A
new
sector
for
Arts,
Entertainment,
and
Recreation
greatly
expands
the
number
of
industries
provided
for
these
services.
There
are
25
industries
in
this
sector,
19
of
which
are
new.
Another
new
sector
is
Accommodation
and
Foodservices
that
combines
eating
and
drinking
places
(
formerly
in
Retail
Trade)
with
accommodations
(
formerly
in
the
Services
division).
There
are
15
industries
in
this
sector,
10
of
which
are
new.
Some
new
industries
recognized
in
this
sector
are
casino
hotels,
bed
and
breakfast
inns,
full­
service
restaurants,
and
limited­
service
restaurants.
Other
new
sectors
that
were
created
from
industries
in
the
1987
SIC
Services
division
are
Real
Estate
and
Rental
and
Leasing
that
has
24
industries,
15
of
which
are
new;
Administrative
and
Support,
Waste
Management
and
Remediation
Services
that
has
43
industries,
29
of
which
are
new;
Educational
Services
that
has
17
industries,
12
of
which
are
new;
and
Other
Services
(
except
Public
Administration)
that
has
52
industries,
19
of
which
are
new.

Product
Classification
System
The
July
26,
1994,
Federal
Register
notice
(
p.
38095)
specifies
that
market­
oriented,
or
demand­
based
groupings
of
economic
data
are
required
for
many
purposes;
some
of
these
purposes
may
not
be
well
served
by
a
production­
oriented
industry
classification
system.
The
ECPC
committed
to
a
program
that
will
provide
improved
data
for
purposes
that
require
market­
orient
groupings.
The
first
part
of
that
commitment
was
to
expand
the
lists
of
commodities
and
services
that
would
be
available
from
the
1997
Economic
Census.
A
Product
Code
Task
Force
was
formed
and
charged
with
improving
the
basic
lists
of
products
and
commodities
and
with
constructing
new
detailed
codes
that
will
be
compatible
across
U.
S.
statistical
agencies
and
that
will
also
mesh
to
the
extent
possible
with
international
detailed
commodity
or
product
systems.
In
the
manufacturing
area,
the
investment
goods
product
detail
(
1987
SIC
major
groups
35­
38)
has
been
revised
to
better
compare
to
the
international
Harmonized
System
product
detail.
In
addition,
the
Census
Bureau
and
Bureau
of
Labor
Statistics
have
developed
a
plan
to
provide
more
comparable
product
data
from
their
statistical
programs.
In
the
nongoods
producing
industries,
additional
product
detail
has
been
added
for
certain
industries,
including
professional,
scientific,
and
technical
services;
software
publishing;
and
communications.
The
second
part
of
the
ECPC
commitment
was
to
develop
a
product
classification
system
for
use
by
all
U.
S.
government
statistical
agencies
in
2002.
Preliminary
plans
are
now
being
developed
to
begin
the
process
of
creating
a
product
classification
system.
It
is
planned
to
develop
this
system
in
cooperation
with
INEGI
and
Statistics
Canada.

OMB's
Final
Decisions
After
taking
into
consideration
comments
submitted
in
response
to
the
November
5,
1996,
Federal
Register
notice,
as
well
as
benefits
and
costs,
and
after
consultation
with
the
ECPC,
INEGI,
and
Statistics
Canada,
OMB
has
made
the
final
determination
of
the
scope
and
substance
of
NAICS
United
States.
In
general,
OMB
accepted
the
ECPC's
final
recommendations
published
in
the
November
5,
1996,
Federal
Register
notice.
However,
in
response
to
public
comment
and
additional
information
gained
in
consultation
with
the
ECPC,
INEGI,
and
Statistics
Canada,
OMB
made
some
changes
to
the
ECPC's
recommendations
for
NAICS
United
States.
OMB
received
37
public
responses
and
6
responses
from
State
government
agencies
to
the
November
5,
1996,
Federal
Register
notice.
Comments
to
OMB
from
these
sources
can
be
grouped
into
a
few
categories.
Almost
half
the
letters
requested
further
changes
to
the
NAICS
United
States
structure,
including
title
changes.
OMB
carefully
considered
these
requests
and
any
changes
accepted
are
noted
below.
Seven
of
the
letters
specifically
supported
NAICS
United
States
and
thanked
the
ECPC
for
its
work.
Three
of
the
letters
objected
to
the
reclassification
of
auxiliaries,
which
also
is
addressed
below.
The
remainder
of
the
letters
requested
clarification
of
industry
content,
discussed
detailed
implementation
issues,
or
spoke
of
regulatory
concerns.
The
ECPC
is
currently
preparing
a
response
for
each
of
these
letters.
In
response
to
comments
and
consultation,
OMB
has
made
the
following
determinations:
Mining­­
NAICS
United
States
213112,
Support
Activities
for
Oil
and
Gas
Field
Exploration,
and
213113,
Other
Oil
and
Gas
Field
Support
Activities,
have
been
combined
and
numbered
and
titled,
213112,
Support
Activities
for
Oil
and
Gas
Field
Operations.
Since
geophysical
mapping
and
surveying
has
been
moved
to
NAICS
54136,
Geophysical
Survey
and
Mapping
Services,
the
remaining
activities
in
the
original
NAICS
United
States
213112,
Support
Activities
for
Oil
and
Gas
Field
Exploration,
are
too
small
to
support
a
separate
industry.
Because
of
the
above
change,
the
following
industries
have
been
renumbered:
Support
Activities
for
Coal
Mining,
is
now
213113;
Support
Activities
for
Metal
Mining
is
now
213114;
and
Support
Activities
for
Non­
Metallic
Minerals
(
except
Fuels)
is
now
213115.
Manufacturing­­
NAICS
subsector
337
Furniture
and
Related
Product
Manufacturing
has
been
revised.
The
new
structure
changes
from
an
emphasis
on
furniture
manufacture
by
type
of
material,
i.
e.,
wood,
metal,
and
other
materials,
to
one
by
type
of
furniture,
i.
e.,
household,
office
and
other.
A
separate
NAICS
industry
also
was
created
for
kitchen
cabinet
and
countertop
manufacturing.
This
change
better
represents
the
way
the
furniture
industry
is
structured
and
is
consistent
with
the
production
principle
on
which
NAICS
is
based.
The
creation
of
many
detailed
furniture
manufacturing
NAICS
industries
for
the
three
countries
was
not
possible,
however,
because
the
internal
structure
of
furniture
manufacturing
differs
from
country
to
country.
For
example,
the
production
of
institutional
furniture
(
furniture
for
schools,
libraries,
etc.)
combined
with
the
production
of
household
furniture
takes
place
in
a
significant
number
of
establishments
in
one
country
and
does
not
in
another;
similarly,
the
combined
production
of
custom
architectural
woodwork
and
millwork
and
of
office
furniture
takes
place
in
a
significant
number
of
establishments
in
one
country
and
does
not
in
another.
NAICS
United
States
321912,
Hardwood
Dimension
Mills,
and
321913,
Softwood
Cut
Stock,
Resawing
Lumber,
and
Planing,
are
combined
into
NAICS
United
States
321912,
Cut
Stock,
Resawing
Lumber,
and
Planing.
The
processes
used
to
produce
the
products
of
these
industries
are
the
same
or
similar,
the
major
difference
being
the
use
of
hardwood
versus
softwood.
Therefore,
the
industries
are
combined.
NAICS
United
States
339117,
Eyeglass
and
Contact
Lens
Manufacturing,
is
combined
with
NAICS
United
States
339115,
Ophthalmic
Goods
Manufacturing.
There
is
no
production
[[
Page
17293]]

distinction
between
these
two
industries
and
thus
they
are
combined.
NAICS
United
States
331421
has
been
renamed
Copper
Rolling,
Drawing,
and
Extruding
and
NAICS
United
States
331422
has
been
renamed
Copper
Wire
(
except
Mechanical)
Drawing.
This
clarifies
the
fact
that
brass
mills
producing
mechanical
wire
are
included
in
331421
and
wire
mills
producing
wire
are
classified
in
331422.
Other
title
changes
in
manufacturing
are:
311225
is
retitled
Fats
and
Oils
Refining
and
Blending;
325188
is
retitled
All
Other
Basic
Inorganic
Chemical
Manufacturing;
325199
is
retitled
All
Other
Basic
Organic
Chemical
Manufacturing;
325221
is
retitled
Cellulosic
Organic
Fiber
Manufacturing;
32552
is
retitled
Adhesive
Manufacturing;
32731
is
retitled
Cement
Manufacturing;
336322
is
retitled
Other
Motor
Vehicle
Electrical
and
Electronic
Equipment
Manufacturing;
and
339911
is
retitled
Jewelry
(
except
Costume)
Manufacturing.
Retail­­
NAICS
United
States
453999,
All
Other
Miscellaneous
Store
Retailers
(
except
Tobacco
Stores)
is
renumbered
to
453998.
There
is
no
change
in
the
title.
Transportation
and
Warehousing­­
NAICS
48121,
Nonscheduled
Chartered
Air
Transportation,
and
NAICS
48122,
Nonscheduled
Specialty
Air
Transportation,
have
been
combined
and
numbered
and
titled,
48121,
Nonscheduled
Air
Transportation.
Since
some
of
the
typical
activities
performed
by
establishments
providing
a
combination
of
specialty
air
transportation
or
flying
services
overlap
with
establishments
providing
nonscheduled
chartered
air
transportation
of
passengers
and/
or
cargo,
the
three
countries
agreed
to
combine
these
establishments
into
one
NAICS
industry.
The
U.
S.
national
industries
within
NAICS
48121,
Nonscheduled
Air
Transportation,
are
as
follows:
NAICS
United
States
481211,
Nonscheduled
Chartered
Passenger
Air
Transportation;
NAICS
United
States
481212,
Nonscheduled
Chartered
Freight
Air
Transportation;
and
NAICS
United
States
481219,
Other
Nonscheduled
Air
Transportation.
The
following
NAICS
industry
groups
and
industries
are
retitled:
4852
is
retitled
Interurban
and
Rural
Bus
Transportation;
48521
is
retitled
Interurban
and
Rural
Bus
Transportation;
4854
is
retitled
School
and
Employee
Bus
Transportation;
48541
is
retitled
School
and
Employee
Bus
Transportation;
NAICS
United
States
488112
is
retitled
and
renumbered
488119,
Other
Airport
Operations;
49311
is
retitled
General
Warehousing
and
Storage
Facilities;
49312
is
retitled
Refrigerated
Warehousing
and
Storage
Facilities;
49313
is
retitled
Farm
Product
Warehousing
and
Storage
Facilities;
and
49319
is
retitled
Other
Warehousing
and
Storage
Facilities.
Finance
and
Insurance­­
NAICS
52593
has
been
retitled
Real
Estate
Investment
Trusts.
Professional,
Scientific,
and
Technical
Services­­
NAICS
United
States
541199
has
been
retitled
All
Other
Legal
Services;
NAICS
54143
has
been
retitled
Graphic
Design
Services;
and
54182
has
been
retitled
Public
Relations
Agencies.
Management
of
Companies
and
Enterprises­­
NAICS
United
States
551113
has
been
renumbered
551114,
Corporate,
Subsidiary
and
Regional
Managing
Offices.
Administrative
and
Support
Services­­
NAICS
United
States
561431
has
been
renumbered
and
retitled
561439,
Other
Business
Service
Centers
(
including
Copy
Shops)
and
NAICS
United
States
561432
has
been
renumbered
561431,
Private
Mail
Centers.
Accommodation
and
Foodservices­­
NAICS
72233
has
been
retitled
Mobile
Foodservices.
Other
Services
(
except
Public
Administration)­­
NAICS
United
States
811121
has
been
retitled
Automotive
Body,
Paint,
and
Interior
Repair
and
Maintenance
and
NAICS
industry
group
8122
has
been
retitled
Death
Care
Services.
Auxiliaries­­
Three
private
sector
commentors
and
one
State
agency
objected
to
classifying
auxiliary
establishments
(
those
establishments
that
primarily
produce
support
services
not
intended
for
use
outside
the
enterprise)
based
on
their
primary
activity
rather
than
maintaining
the
historic
SIC
treatment
of
classifying
auxiliary
establishments
based
on
the
industry
classification
of
the
establishments
they
primarily
serve.
Two
State
government
agencies
supported
the
change.
Those
who
objected
acknowledge
that
there
are
problems
associated
with
the
1987
SIC
classification
of
auxiliaries,
but
are
concerned
about
the
loss
of
employment
in
manufacturing
industries
if
auxiliary
establishments
such
as
accounting
offices,
administrative
and
corporate
offices,
and
warehouses
are
classified
according
to
their
primary
activity.
NAICS,
however,
is
based
on
the
economic
principle
that
establishments
should
be
grouped
together
based
on
their
production
processes,
i.
e.,
units
that
use
identical
or
similar
production
processes
in
producing
a
good
or
service
should
be
grouped
together.
For
example,
classifying
a
data
processing
services
establishment
of
an
automobile
producer
that
performs
services
for
its
automobile
assembly
plants
in
the
automobile
industry
violates
that
principle.
The
data
processing
center's
production
process
is
much
more
like
that
of
establishments
in
NAICS
51421,
Data
Processing
Services,
than
those
establishments
in
NAICS
United
States
336111,
Automobile
Manufacturing.
In
addition,
more
and
more
of
these
auxiliary
establishments
are
selling
their
services
to
establishments
outside
their
enterprise.
For
example,
the
1992
Economic
Censuses
reported
that
auxiliary
establishments
had
more
than
$
142
billion
in
outside
sales,
more
than
doubling
the
$
64
billion
reported
in
1987.
These
sales
are
not
reflected
in
the
industries
in
which
they
occur,
but
rather
in
the
industries
that
the
auxiliary
establishment
primarily
serves,
thereby
understating
the
receipts
of
many
service
industries.
Therefore,
NAICS
will
classify
auxiliary
establishments
based
on
their
primary
activity.
To
address
the
concern
about
the
apparent
loss
of
manufacturing
employment,
the
Census
Bureau
will
code
auxiliary
establishments
for
the
1997
Economic
Censuses
both
by
primary
activity
and
by
the
industry
of
the
establishments
they
primarily
serve,
thereby
providing
a
link
between
the
1992
and
1997
data.
NAICS
United
States
Implementation
The
NAICS
United
States
replacement
of
the
SIC
is
effective
January
1,
1997.
The
first
data
to
be
available
on
a
NAICS
United
States
basis
will
be
from
the
1997
Economic
Censuses
to
be
published
in
early
1999.
For
most
programs,
data
will
be
introduced
over
several
years.
Data
series
may
not
always
be
revised
for
years
before
the
respective
program's
implementation
of
NAICS
United
States.
INEGI,
OMB,
and
Statistics
Canada
have
put
in
place
a
process
for
ensuring
that
the
implementation
of
NAICS
is
comparable
across
all
three
countries.
Regularly
scheduled
meetings
among
the
three
countries
will
ensure
that
there
is
a
smooth
transition
to
NAICS
in
all
three
countries.
In
addition,
the
three
countries
plan
to
continually
review
and
update
NAICS
to
ensure
that
new
activities
are
promptly
recognized
and
to
extend
NAICS
to
the
5­
digit
industry
level
in
those
sectors
where
agreement
is
now
at
only
the
sector,
subsector,
or
industry
group
level.

[[
Page
17294]]

Time
Series
Continuity
The
standard
approach
to
preserving
time
series
continuity
after
classification
revisions
is
to
create
linkages
where
the
series
break.
This
is
accomplished
by
producing
the
data
series
using
both
the
old
and
new
classifications
for
a
given
period
of
transition.
With
the
dual
classifications
of
data,
the
full
impact
of
the
revision
can
be
assessed.
Data
producers
then
may
measure
the
reallocation
of
the
data
at
aggregate
industry
levels
and
develop
a
concordance
between
the
new
and
old
series
for
that
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
the
1997
NAICS
United
States
will
be
developed
by
the
statistical
agencies
in
the
U.
S.

NAICS
Nonstatistical
Use
NAICS
was
designed,
as
was
the
SIC
before
it,
solely
for
statistical
purposes.
Although
it
is
expected
that
NAICS,
like
the
SIC,
will
also
be
used
for
various
nonstatistical
purposes
(
e.
g.,
administrative,
regulatory,
or
taxation),
the
requirements
of
government
agencies
that
use
it
for
nonstatistical
purposes
have
played
no
role
in
its
development.
Consequently,
as
has
been
the
case
with
the
SIC
(
Statistical
Policy
Directive
No.
8,
Standard
Industrial
Classification
of
Establishments),
NAICS
shall
not
be
used
in
any
administrative,
regulatory,
or
tax
program
unless
the
head
of
the
agency
administering
that
program
has
first
determined
that
the
use
of
such
industry
definitions
is
appropriate
to
the
implementation
of
the
program's
objectives.
If
the
terms,
  
North
American
Industry
Classification
System,''
  
NAICS,''
or
  
NAICS
United
States''
are
to
be
used
in
the
operative
text
of
any
law
or
regulation
to
define
industry
(
or
trade
or
commerce),
language
similar
to
the
following
should
be
used
to
assure
sufficient
flexibility:
  
An
industry
or
grouping
of
industries
shall
mean
a
North
American
Industry
Classification
System
industry
or
grouping
of
industries
as
defined
by
the
Office
of
Management
and
Budget
subject
to
such
modifications
with
respect
to
individual
industries
or
groupings
of
industries
as
the
Secretary
(
Administrator)
may
determine
to
be
appropriate
for
the
purpose
of
this
Act
(
regulation).''

1997
NAICS
United
States
Industry
Structure
and
Relationship
to
1987
SIC
Table
1
below
presents
the
final
decisions
for
the
entire
structure
of
the
1997
NAICS
United
States
classification
system
including
both
5­
digit
NAICS
and
6­
digit
NAICS
United
States
national
detail
industries.
It
shows
the
hierarchy
and
the
coding
system
in
1997
NAICS
United
States
sequence;
it
also
relates
the
1997
NAICS
United
States
to
the
1987
U.
S.
SIC.
Table
2
is
in
1987
U.
S.
SIC
sequence
and
relates
the
1987
U.
S.
SIC
industries
to
the
1997
NAICS
United
States
including
the
6­
digit
U.
S.
national
detail
industries.
All
OMB
final
changes
to
the
structure
of
the
1997
NAICS
United
States
based
on
public
comment
and
consultation
with
the
ECPC,
INEGI,
and
Statistics
Canada
are
included
in
Tables
1
and
2.

BILLING
CODE
3110­
01­
P