[Federal Register Volume 60, Number 143 (Wednesday, July 26, 1995)]
[Notices]
[Pages 38436-38452]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18258]




[[Page 38435]]

_______________________________________________________________________

Part III





Office of Management and Budget





_______________________________________________________________________



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

  Federal Register / Vol. 60, No. 143 / Wednesday, July 26, 1995 / 
Notices  


[[Page 38436]]


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 Proposed NAICS industry classification structure for 
Petroleum and Coal Products Manufacturing, Chemicals Manufacturing, and 
Rubber and Plastics Products Manufacturing; Broadcasting and 
Telecommunications; and Foodservices and Drinking Places and 
Accommodations.

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

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.
    This notice, the third related to preparation of NAICS and the 
first in a series seeking comment on proposed industry revisions, 
presents the proposed NAICS structures for petroleum and coal products 
manufacturing, chemical manufacturing, and rubber and plastics 
manufacturing; broadcasting and telecommunications; and foodservices 
and drinking places and accommodations.
    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.
    Subsequent Federal Register notices will seek comment on other 
industry sector and subsector proposals. OMB is publishing the proposed 
new industry structure as soon as the drafting is completed, to provide 
as much information as quickly as possible and to ensure extensive 
public participation in the process. A final Federal Register notice, 
to be published in the fall of 1995, will include the entire NAICS 
structure for public comment.
    NAICS is being developed in cooperation with Statistics Canada and 
Mexico's Instituto Nacional de Estadistica, Geografia e Informatica 
(INEGI). The new NAICS system provides common industry definitions for 
Canada, Mexico, and the United States to facilitate economic analyses 
that cover the economies of the three North American countries. The 
three country collaboration on an industry classification system for 
North America was announced for public comment in the Federal Register, 
July 26, 1994, pp. 38092-38096.
    The July 26, 1994, Federal Register notice includes the concepts 
for the new system, as developed by Statistics Canada, Mexico's INEGI, 
and the ECPC. It also includes a copy of the joint statement of the 
three countries' statistical agencies regarding the development of 
NAICS. That agreement includes the following principles:
    (1) NAICS will be erected on a production-oriented, or supply-
based, conceptual framework. This means that producing units that use 
identical or similar production processes will be grouped together in 
NAICS.
    (2) The system will give special attention to developing 
production-oriented classifications for (a) new and emerging 
industries, (b) service industries in general, and (c) industries 
engaged in the production of advanced technologies.
    (3) Time series continuity will be maintained to the extent 
possible. However, changes in the economy and proposals from data users 
must be considered. In addition, adjustments will be required for 
sectors where the United States, Canada, and Mexico presently have 
incompatible industry classification definitions in order to produce a 
common industry system for all three North American countries.
    (4) The system will strive for compatibility with the 2-digit level 
of the International Standard Industrial Classification of All Economic 
Activities (ISIC, Rev. 3) of the United Nations.
    ECPC Report No. 3--Summary of Public Responses to the Proposed New 
North American Industry Classification Industry System provides a 
summary of public comments received in response to the July 26, 1994, 
Federal Register notice.

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 September 
18, 1995. The 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.
    Copies of all ECPC issues papers and ECPC reports are available by 
contacting 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.

ELECTRONIC AVAILABILITY AND COMMENTS: This document is available on the 
Internet from the Census Bureau via WWW browser, ftp, and email.
    To obtain this document via WWW browser, connect to ``http://
www.census.gov'' then select ``Economy,'' then select ``Economy-Wide 
Programs,'' then select ``NAICS Documents.''
    To obtain this document via ftp, login 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 email, send a message to 
[email protected] 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 
[email protected] (do not include any capital letters in the address). 
Comments received at this address by the date 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 
number: (301) 457-2668, FAX number: (301) 457-1343.

SUPPLEMENTARY INFORMATION:

Structure of Notice:

    There are three parts to this notice. PART 1 includes the proposals 
for petroleum and coal products manufacturing, chemicals manufacturing, 
and rubber and plastics products manufacturing; PART 2 includes 
broadcasting and telecommunications; and PART 3, includes foodservices 
and drinking places and accommodations. 

[[Page 38437]]

    Each of the three 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. This will allow each country to 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. The second section of the 
notice 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.
    NAICS is organized in a hierarchical structure much like the 
existing SIC. The first digit of a NAICS code designates the sector. 
The code also designates 2-digit subsectors, 3-digit industry groups, 
and 4-digit industries. 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. The proposed United States NAICS system, for example, would 
include 5-digit 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 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 (not highlighted in structure).           
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.

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 organizations 
that responded 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 Petroleum and Coal Products 
Manufacturing, Chemicals Manufacturing, and Rubber and Plastics 
Products Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 1
    This Document represents the proposed agreement on the structure of 
the North American Industry Classification System (NAICS) for the 
following industries:

Petroleum and Coal Products Manufacturing
Chemicals Manufacturing
Rubber and Plastics Products 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 
discussions 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 May 18 and 19 in Ottawa, Canada.

------------------------------------------------------------------------
           Accepted                       Signature               Date  
------------------------------------------------------------------------
Canada........................  /S/ Jacob Ryten..............    5/19/95
Mexico........................  /S/ Enrique Ordaz............    5/19/95
United States.................  /S/ Jack E. Triplett.........    5/19/95
------------------------------------------------------------------------


                     Attachment 1.--NAICS Structure                     
                                                                        
                                                                        
XX                Petroleum and Coal Products Manufacturing             
XXX                 Petroleum and Coal Products Manufacturing.          
XXXX                  Petroleum Refineries.                             
XXXX                  Asphalt Paving and Roofing and Saturated Materials
                   Manufacturing.                                       
XXXX                  Other Petroleum and Coal Products Manufacturing.  
XX                Chemicals Manufacturing                               
XXX                 Basic Chemicals Manufacturing.                      
XXXX                  Petrochemicals Manufacturing.                     
XXXX                  Industrial Gases Manufacturing.                   
XXXX                  Dyes and Pigments Manufacturing.                  
XXXX                  Other Inorganic Chemicals Manufacturing.          
XXXX                  Other Organic Chemicals Manufacturing.            
XXX                 Resins, Synthetic Rubber, Artificial and Synthetic  
                   Fibers and Filament Manufacturing.                   
XXXX                  Resins and Synthetic Rubber Manufacturing.        
XXXX                  Artificial and Synthetic Fibers and Filament      
                   Manufacturing.                                       
XXX                 Pesticides, Fertilizers, and Other Agricultural     
                   Chemicals Manufacturing.                             
XXXX                  Fertilizers Manufacturing.                        
XXXX                  Pesticides and Other Agricultural Chemicals       
                   Manufacturing.                                       
XXX                 Pharmaceuticals and Medicine Manufacturing.         
XXX                   Pharmaceuticals and Medicine Manufacturing.       
XXX                 Paints, Coatings, Adhesives, and Sealants           
                   Manufacturing.                                       
XXXX                  Paints and Coatings Manufacturing.                
XXXX                  Adhesives and Sealants Manufacturing.             

[[Page 38438]]
                                                                        
XXX                 Soaps, Cleaning Compounds, and Toilet Preparations  
                   Manufacturing.                                       
XXXX                  Soaps and Cleaning Compounds Manufacturing.       
XXXX                  Toilet Preparations Manufacturing.                
XXX                 Miscellaneous Chemical Products Manufacturing.      
XXXX                  Printing Ink Manufacturing.                       
XXXX                  Explosives Manufacturing.                         
XXXX                  Other Miscellaneous Chemical Products             
                   Manufacturing.                                       
XX                Rubber and Plastics Products Manufacturing.           
XXX                 Rubber Products Manufacturing.                      
XXXX                  Tires and Tubes Manufacturing.                    
XXXX                  Rubber and Plastics Hose and Belting              
                   Manufacturing.                                       
XXXX                  Other Rubber Products Manufacturing.              
XXX                 Plastics Products Manufacturing.                    
XXXX                  Unsupported Plastics Films, Sheets and Bags       
                   Manufacturing.                                       
XXXX                  Unsupported Profile Shapes, Plastics Pipes, and   
                   Fittings Manufacturing.                              
XXXX                  Laminated Plastics Plates, Sheets, and Shapes     
                   Manufacturing.                                       
XXXX                  Polystyrene Foam Products Manufacturing.          
XXXX                  Urethane Foam Products Manufacturing.             
XXXX                  Plastics Bottles Manufacturing.                   
XXXX                  Other Plastics Products Manufacturing.            


Attachment 2--North American Industry Classification System

Draft Classification for:
    Petroleum and Coal Products Manufacturing
    Chemicals Manufacturing
    Rubber and Plastics Products Manufacturing

    Representatives of the statistical agencies of Canada, Mexico and 
the United States have agreed to a draft industry classification for 
these industries.
    The draft classification provides for three industry subsectors, 
Petroleum and Coal Products Manufacturing; Chemicals Manufacturing; and 
Rubber and Plastics Products Manufacturing. These are further 
subdivided into ten industry groups and thirty industries. These 
industry subsectors will be part of the Manufacturing sector(s) of the 
NAICS classification.

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. 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 level of 
the structure. All countries agree on the detailed definitions of the 
industries.
    The classification improves comparability with other countries. 
With the exception of the ``miscellaneous'' industries, all industries 
are compatible with the 2-digit level of the current International 
Standard Industrial Classification of All Economic Activities (ISIC, 
Revision 3) of the United Nations. This means that each NAICS industry 
is the same as, or part of, a single ISIC 2-digit Division. Therefore, 
data tabulated using NAICS can be readily re-tabulated according to 
ISIC. This comparability extends to higher levels of the NAICS. For 
example, there is little difference between the NAICS Chemical 
Industries, and ISIC 24, Manufacture of Chemicals and Chemical 
Products.
    Objectives of the NAICS project other than comparability are not so 
relevant in the classification of these subsectors as in others. These 
objectives are the delineation of new and emerging industries, service 
industries and industries engaged in the production of advanced 
technologies. These manufacturing industry subsectors are relatively 
mature, generally produce goods, and have always employed relatively 
advanced technology. Therefore the emphasis in developing this area has 
been on the production concept and comparability.
    The industries have high specialization ratios, and they are 
economically significant. The detail 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, disruptions to time series at the NAICS industry 
level have been kept to a minimum. Most of the changes at the detail to 
existing classifications are marginal. The major changes are well-
identified and can be taken into account in linking time series.

Limitations of the Classification

    On the other hand, there are some analytical requirements that 
cannot be met by the proposed industry classification. In particular, 
there is a demand for data on the production of all articles of 
plastic. This cannot be accommodated by the proposed industry 
classification due to the ubiquity of plastics in manufactured 
products. Many industrial activities that incorporate plastics in 
combination with other materials are classified elsewhere in 
manufacturing.
    Similarly, a breakdown of plastics industries that follows market 
lines cannot be produced. This arises from the fact that, in general, 
plastics fabricators can and do switch production from one type of 
product to another as market conditions change. In some cases a market 
or demand category does correspond to a distinct production process, in 
which case an industry can be defined that supports the needs of both 
supply-oriented and demand-oriented analyses. An example of this is the 
NAICS Plastics Bottles Manufacturing industry. However, in general, 
this is not possible because of the way businesses have organized their 
production facilities.
    Users requiring data for demand analysis can instead make use of 
statistics based on commodity classifications. Each country publishes 
such data. Efforts are underway to harmonize the commodity 
classifications to allow comparability of these statistics.

Constraints on the NAICS Classification

    A few factors constrained the structure and detail of the 
classification in the area under consideration.
    An issue related to the coding structure is the ability to publish 
and the economic significance of the items defined in the 
classification. In the chemicals 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 
countries. Further, data for some significant activities cannot be 
published for a particular country for reasons of confidentiality, such 
as the matches manufacturing industry in Canada. Finally, the way 
activities are combined in establishments differs to some extent in the 
different countries. A structure could have been developed that 
specified such activities in NAICS, but the resulting statistical 
tables for any given country would have numerous insignificant or 
suppressed entries. It was preferable to adopt an operating rule that 
the NAICS industries for this 

[[Page 38439]]
area must be economically significant and publishable. It is 
anticipated that each country will publish additional categories that 
comprise sub-divisions of NAICS industries, to present data for 
activities that are significant nationally.
    Other constraints did involve the nature of the industries to be 
classified. In the case of chemicals, it was essential for NAICS to 
include Petrochemicals Manufacturing as an industry, due to the 
significance of this activity in Mexico. This is a major change for the 
United States and Canada. It involves some extra work for these 
countries in implementing the classification, since the direct 
assignment of industry codes from commodity output information (a 
common technique for most manufacturing industries) cannot be used 
without modification. Nevertheless, the importance of the activity, and 
the fact that it is based on a well-defined production process, 
resulted in its inclusion in NAICS.
A General Outline

    The Petroleum and Coal Products Manufacturing subsector is based on 
the transformation of crude petroleum and coal into usable products. 
The dominant process is petroleum refining, which involves the 
separation of crude petroleum into component products through such 
techniques as cracking and distillation.
    The Chemicals Manufacturing subsector is based on the 
transformation of organic and inorganic raw materials by a chemical 
process, and the formulation of products. This subsector distinguishes 
the production of basic chemicals, which comprises the first industry 
group, from the production of intermediate and end products produced by 
further processing of basic chemicals, which make up the remaining 
industry groups.
    Concerning Basic Chemicals Manufacturing industries, data users 
will note that a general distinction has not been made between organic 
and inorganic basic chemicals. The production of organic and inorganic 
industrial gases is a single activity. In Mexico, the production of 
organic and inorganic dyes and pigments commonly takes place in the 
same establishments.
    The industry subsector Rubber and Plastics Products Manufacturing 
includes establishments that make goods by processing raw rubber and 
plastics materials. To the extent possible, this subsector is 
restricted to industrial activities whose core technology is the 
production of products made of just one material, rubber or plastic. 
Many manufacturing activities use rubber or plastic as one of several 
inputs, to the extent that the core technology relates to the type of 
product produced. An example of this is the manufacture of footwear. 
Typically, more than one material is used to produce shoes, so 
technologies that allow disparate materials to be formed and combined 
are of central importance in describing the footwear manufacturing 
activity. Such activities, for example footwear and furniture 
manufacture, are generally classified elsewhere than in the industry 
subsectors organized around the core technologies of rubber and 
plastic.
    The main exception to this principle is Tires and Tubes 
Manufacturing. The production of tires is included in Rubber Products 
Manufacturing to minimize the disruption of time series and for 
comparability with ISIC, rather than because it particularly fits the 
general production process of the major group subsector. Tires are 
normally made from several materials.
    A distinction is made between rubber and plastics products at the 
industry group level. It is not a rigid distinction, as can be seen 
from the definition of Rubber and Plastics Hose and Belting 
Manufacturing. As materials technology improves, plastics are 
increasingly being used as a substitute for rubber. Eventually, the 
distinction may disappear as a basis for defining establishments, and 
be limited to the commodity classification.
    The Plastics Products Manufacturing industry subsector consists 
generally of activities involving the processing of plastics materials 
in forms such as pellets into intermediate or final products, using 
such processes as extrusion and injection moulding. Within most of 
these industries, the production process is such that a wide variety of 
products can be produced.

Some Changes to the National Classifications

    This section highlights some of the significant changes to existing 
national classifications.
    In Petroleum and Coal Products Manufacturing, the main change to an 
existing classification is the inclusion of activities currently in 
CSIC \1\ 2721, Asphalt Roofing Industry, in NAICS Asphalt Paving and 
Roofing and Saturated Materials Manufacturing. It is included here 
because the defining feature of the production process (the saturation 
of paper with asphalt) is the manipulation of asphalt.

    \1\ CSIC refers to the Standard Industrial Classification of 
Canada, 1980 Revision. USIC refers to the Standard Industrial 
Classification of the United States, 1987 Revision. CMAP refers to 
the Classification of Activities and Products of Mexico.
---------------------------------------------------------------------------

    The production of alumina from bauxite is currently classified in 
USIC 2819, Industrial Inorganic Chemicals, NEC. The production of 
alumina does involve the use of a chemical process, but it is analogous 
to the chemical activities involved in the processing of other ores in 
smelting and refining industries. It will therefore be treated as an 
activity in the primary metals, rather than in NAICS Other Inorganic 
Chemicals Manufacturing.
    The production of artificial and synthetic fibers is treated as a 
textile activity in CSIC. While the outputs are a basic raw material 
for textile production, the fiber production itself is an activity with 
chemical characteristics. It is basically a polymerization process, 
similar to the production of synthetic resins. It is therefore included 
in the NAICS Chemicals Manufacturing subsector (Artificial and 
Synthetic Fibers and Filament Manufacturing).
    The manufacture of photographic chemicals and sensitized paper is 
classified in CSIC 3912, Other Instruments and Related Products 
Industry and in USIC 3861, Photographic Equipment and Supplies. NAICS 
classifies the production of these goods in Miscellaneous Chemical 
Products Manufacturing, since their production process is a chemical 
products process, not an equipment manufacturing process.
    The new classification eliminates the 2-digit distinction between 
rubber products and plastics products that was found in CSIC (groups 15 
and 16). NAICS combines CSIC group 15, rubber products, and group 16, 
plastics products, into one subsector, Rubber and Plastics Products 
Manufacturing.
    NAICS Tires and Tubes Manufacturing includes an activity--the 
retreading and recapping of tires--which in CSIC and USIC is classified 
as non-manufacturing. The tire retreading and recapping activity is 
included in manufacturing because it involves more than just a repair. 
This activity is an example of ``re-building'', which occurs when a 
manufactured article is returned to usability using processes similar 
to those used in the original manufacturing operation. Re-building 
activities will be included in manufacturing in NAICS.
    NAICS Rubber and Plastics Products Manufacturing excludes the 
manufacture of footwear, furniture and toys of rubber and plastic. This 
is a significant change to CMAP, which includes these activities in 
CMAP 3550, Rubber Industry and 3560, Manufacture of Plastics Products. 

[[Page 38440]]

    NAICS Unsupported Plastics Films, Sheet and Bags Manufacturing 
includes the manufacture of plastic laminates for packaging and plastic 
bags, which are classified respectively in USIC 2671, Packaging Paper 
and Plastics Film, Coated and Laminated and 2673, Plastics, Foil and 
Coated Paper Bags.
    NAICS Other Plastics Products Manufacturing includes the 
manufacture of most of the plastics motor vehicle parts, such as 
interior and exterior trim of plastics, which are classified in CSIC 
3256, Plastics Parts and Accessories for Motor Vehicles.

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 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 three 
NAICS industry subsectors covered in Part I of this notice. In the 
following tables, proposed 5-digit detail is indicated in italics. 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                                                    
 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.                 
----------------------------------------------------------------------------------------------------------------
                                                                            1987 USIC                           
                      1997 NAICS and U.S. description          Status code     code      1987 USIC description  
----------------------------------------------------------------------------------------------------------------
XX            Petroleum and Coal Products Manufacturing                                                         
XXX             Petroleum and Coal Products Manufacturing                                                       
XXXX              Petroleum Refineries......................  E                  2911  Petroleum Refining.      
XXXX              Asphalt Paving and Roofing and Saturated                                                      
               Materials Manufacturing                                                                          
XXXXX               Asphalt Paving Mixtures and Blocks        E                  2951  Asphalt Paving Mixtures  
               Manufacturing.                                                           and Blocks.             
XXXXX               Asphalt Felts and Coatings Manufacturing  E                  2952  Asphalt Felts and        
                                                                                        Coatings.               
XXXX              Other Petroleum and Coal Products                                                             
               Manufacturing                                                                                    
XXXXX               Lubricating Oils and Greases              E                  2992  Lubricating Oils and     
               Manufacturing.                                                           Greases.                
XXXXX               All Other Petroleum and Coal Products     R                  2999  Petroleum and Coal       
               Manufacturing.                                                           Products, NEC.          
                                                                                *3312  Blast Furnaces and Steel 
                                                                                        Mills (Coke Ovens).     
XX            Chemicals Manufacturing                                                                           
XXX             Basic Chemicals Manufacturing                                                                   
XXXX              Petrochemicals Manufacturing..............  N                 *2865  Cyclic Crudes and        
                                                                                        Intermediates           
                                                                                        (Aromatics).            
                                                                                *2869  Industrial Organic       
                                                                                        Chemicals, NEC          
                                                                                        (Aliphatics).           
XXXX              Industrial Gases Manufacturing............  R                  2813  Industrial Gases.        
                                                                                *2869  Industrial Organic       
                                                                                        Chemicals, NEC          
                                                                                        (Fluorocarbon Gases).   
XXXX              Dyes and Pigments Manufacturing                                                               
XXXXX               Inorganic Dyes and Pigments               N                 *2816  Inorganic Pigments       
               Manufacturing.                                                           (Except Bone and Lamp   
                                                                                        Black).                 
                                                                                *2819  Industrial Inorganic     
                                                                                        Chemicals, NEC          
                                                                                        (Inorganic Dyes).       
XXXXX               Organic Dyes and Pigments Manufacturing.  N                 *2865  Cyclic Crudes and        
                                                                                        Intermediates (Organic  
                                                                                        Dyes and Pigments).     
XXXX              Other Inorganic Chemicals Manufacturing                                                       
XXXXX               Alkalies and Chlorine Manufacturing.....  E                  2812  Alkalies and Chlorine.   
XXXXX               Carbon Black Manufacturing..............  R                 *2816  Inorganic pigments (Bone 
                                                                                        and Lamp Black).        
                                                                                 2895  Carbon Black.            
XXXXX               All Other Inorganic Chemicals             R                 *2819  Industrial Inorganic     
               Manufacturing.                                                           Chemicals, NEC (Except  
                                                                                        Activated Carbon and    
                                                                                        Charcoal, Alumina, and  
                                                                                        Inorganic Industrial    
                                                                                        Dyes).                  
                                                                                *2869  Industrial Organic       
                                                                                        Chemicals, NEC (Carbon  
                                                                                        Bisulfide).             
XXXX              Other Organic Chemicals Manufacturing                                                         
XXXXX               Gum and Wood Chemicals Manufacturing....  E                  2861  Gum and Wood Chemicals.  
XXXXX               Cyclic Crudes and Intermediates           R                 *2865  Cyclic Crudes and        
               Manufacturing.                                                           Intermediates (Except   
                                                                                        Aromatics, Organic Dyes,
                                                                                        and Pigments).          

[[Page 38441]]
                                                                                                                
XXXXX               All Other Organic Chemicals               R                 *2869  Industrial Organic       
               Manufacturing.                                                           Chemicals, NEC (Except  
                                                                                        Aliphatics, Carbon      
                                                                                        Bisulfide, Ethyl        
                                                                                        Alcohol, Fatty Acid     
                                                                                        Esters, and Fluorocarbon
                                                                                        Gases).                 
XXX             Resins, Synthetic Rubber, Artificial and                                                        
               Synthetic Fibers and Filament Manufacturing                                                      
XXXX              Resins and Synthetic Rubber Manufacturing                                                     
XXXXX               Plastics Materials and Resins             E                  2821  Plastics Materials and   
               Manufacturing.                                                           Resins.                 
XXXXX               Synthetic Rubber Manufacturing..........  E                  2822  Synthetic Rubber.        
XXXX              Artificial and Synthetic Fibers and                                                           
               Filament Manufacturing                                                                           
XXXXX               Cellulosic Manmade Fibers Manufacturing.  E                  2823  Cellulosic Manmade       
                                                                                        fibers.                 
XXXXX               Noncellulosic Organic Fibers              E                  2824  Noncellulosic Organic    
               Manufacturing.                                                           Fibers.                 
XXX             Pesticides, Fertilizers and Other                                                               
               Agricultural Chemicals Manufacturing                                                             
XXXX              Fertilizers Manufacturing                                                                     
XXXXX               Nitrogenous Fertilizers Manufacturing...  E                  2873  Nitrogenous Fertilizers. 
XXXXX               Phosphatic Fertilizers Manufacturing....  E                  2874  Phosphatic Fertilizers.  
XXXXX               Fertilizers, Mixing Only Manufacturing..  E                  2875  Fertilizers, Mixing Only.
XXXX              Pesticides and Other Agricultural           E                  2879  Agricultural Chemicals,  
               Chemicals Manufacturing.                                                 NEC.                    
XXX             Pharmaceuticals and Medicine Manufacturing                                                      
XXXX              Pharmaceuticals and Medicine Manufacturing                                                    
XXXXX               Medicinals and Botanicals Manufacturing.  E                  2833  Medicinals and           
                                                                                        Botanicals.             
XXXXX               Pharmaceutical Preparations               R                  2834  Pharmaceutical           
               Manufacturing.                                                           Preparations.           
                                                                                *2835  Diagnostic Substances    
                                                                                        (Except in-Vitro        
                                                                                        Diagnostic).            
XXXXX               In-Vitro Diagnostic Substances            N                 *2835  Diagnostic Substances (In-
               Manufacturing.                                                           Vitro Diagnostic        
                                                                                        Substances).            
XXXXX               Biological Products, Except Diagnostic    E                  2836  Biological Products.     
               Manufacturing.                                                                                   
XXX             Paint, Coatings, Adhesives, and Sealants                                                        
               Manufacturing                                                                                    
XXXX              Paints and Coatings Manufacturing.........  R                  2851  Paints and Coatings.     
                                                                                *2899  Chemical Preparations,   
                                                                                        NEC (Frit).             
XXXX              Adhesives and Sealants Manufacturing......  E                  2891  Adhesives and Sealants.  
XXX             Soaps, Cleaning Compounds and Toilet                                                            
               Preparations Manufacturing                                                                       
XXXX              Soaps and Cleaning Compounds Manufacturing                                                    
XXXXX               Soaps and Other Detergents Manufacturing  R                  2841  Soaps and Other          
                                                                                        Detergents.             
                                                                                *2844  Toilet Preparations      
                                                                                        (Toothpaste).           
XXXXX               Polishes and Other Sanitation Goods       E                  2842  Polishes and Other       
               Manufacturing.                                                           Sanitation Goods.       
XXXXX               Surface Active Agents Manufacturing.....  E                  2843  Surface Active Agents.   
XXXX              Toilet Preparations Manufacturing.........  R                 *2844  Toilet Preparations      
                                                                                        (Except Toothpaste).    
XXX             Miscellaneous Chemical Products                                                                 
               Manufacturing                                                                                    
XXXX              Printing Ink Manufacturing................  R                  2893  Printing Inks.           
                                                                                *2899  Chemical Preparations,   
                                                                                        NEC (Writing and        
                                                                                        Stamping Inks).         
                                                                                *3952  Lead Pencils and Art     
                                                                                        Goods (Drawing Inks and 
                                                                                        India Ink).             
XXXX              Explosives Manufacturing..................  E                  2892  Explosives.              
XXXX              Other Miscellaneous Chemical Products                                                         
               Manufacturing                                                                                    
XXXXX               Custom Compounding Purchased Resins       E                  3087  Custom Compounding       
               Manufacturing.                                                           Purchased Resins.       
XXXXX               Photographic Films, Papers, Plates and    N                 *3861  Photographic Equipment   
               Chemicals Manufacturing.                                                 and Supplies            
                                                                                        (Photographic Films,    
                                                                                        Paper and Chemicals).   
XXXXX               All Other Miscellaneous Chemical          R                 *2819  Chemical Preparations,   
               Products Manufacturing.                                                  NEC (Activated Carbon   
                                                                                        and Charcoal).          
                                                                                *2869  Industrial Organic       
                                                                                        Chemicals, NEC (Fatty   
                                                                                        Acid Esters).           
                                                                                *2899  Chemical Preparations,   
                                                                                        NEC (Except Frit and    
                                                                                        Writing and Stamp Ink). 
                                                                                *3999  Manufacturing Industries,
                                                                                        NEC (Matches).          
XX            Rubber and Plastics Products Manufacturing                                                        
XXX             Rubber Products Manufacturing                                                                   
XXXX              Tires and Tubes Manufacturing                                                                 

[[Page 38442]]
                                                                                                                
XXXXX               Tires and Inner Tubes Manufacturing.....  E                  3011  Tires and Inner Tubes.   
XXXXX               Tire Rebuilding and Repair..............  E                  7534  Tire Rebuilding and      
                                                                                        Repair.                 
XXXX              Rubber and Plastics Hose and Belting        E                  3052  Rubber and Plastics Hose 
               Manufacturing.                                                           and Belting.            
XXXX              Other Rubber Products Manufacturing                                                           
XXXXX               Mechanical Rubber Products Manufacturing  E                  3061  Mechanical Rubber        
                                                                                        Products.               
XXXXX               All Other Rubber Products Manufacturing.  R                 *3053  Gaskets, Packings and    
                                                                                        Sealing Devices (Rubber 
                                                                                        Gaskets, Packings and   
                                                                                        Sealing Devices.        
                                                                                *3069  Fabricated Rubber        
                                                                                        Products, NEC (Except   
                                                                                        Rubberized Fabric and   
                                                                                        Rubber Resilient Floor  
                                                                                        Covering).              
XXX             Plastics Products Manufacturing                                                                 
XXXX              Unsupported Plastics Films, Sheets and                                                        
               Bags Manufacturing                                                                               
XXXXX               Unsupported Plastics Bags Manufacturing.  N                 *2673  Bags: Plastics,          
                                                                                        Laminated, and Coated   
                                                                                        (Plastics Bags).        
XXXXX               Unsupported Plastics Packaging Films and  N                 *2671  Paper Coated and         
               Sheets Manufacturing.                                                    Laminated, NEC (Plastics
                                                                                        Packaging Film and      
                                                                                        Sheet).                 
XXXXX               Unsupported Plastics Films and Sheets,    E                  3081  Unsupported Plastics Film
               Except Packaging Manufacturing.                                          and Sheets, Except      
                                                                                        Packaging.              
                                                                                *3073  Laminated Plastics Plate,
                                                                                        Sheet, and Profile      
                                                                                        Shapes (Acrylic Sheets).
XXXX              Unsupported Profile Shapes, Plastics                                                          
               Pipes, and Fittings Manufacturing                                                                
XXXXX               Unsupported Plastics Profile Shapes       R                  3082  Unsupported Plastics     
               Manufacturing.                                                           Profile Shapes.         
                                                                                *3089  Plastics Product, NEC    
                                                                                        (Plastics Sausage       
                                                                                        Casings).               
XXXXX               Plastics Pipes and Pipe Fittings          R                  3084  Plastics Pipes.          
               Manufacturing.                                                                                   
                                                                                *3089  Plastics Products, NEC   
                                                                                        (Plastics Pipe          
                                                                                        Fittings).              
XXXX              Laminated Plastics Plates, Sheets, and      E                 *3083  Laminated Plastics Plate,
               Shapes Manufacturing.                                                    Sheet and Shapes (Except
                                                                                        Acrylic Sheets).        
XXXX              Polystyrene Foam Products Manufacturing...  N                 *3086  Plastics Foam Products   
                                                                                        (Polystyrene Foam       
                                                                                        Products).              
XXXX              Urethane Foam Products Manufacturing......  N                 *3086  Plastics Foam Products   
                                                                                        (Urethane Foam          
                                                                                        Products).              
XXXX              Plastics Bottles Manufacturing............  E                  3085  Plastics Bottles.        
XXXX              Other Plastics Products Manufacturing                                                         
XXXXX               Plastics Plumbing Fixtures Manufacturing  E                  3088  Plastics Plumbing        
                                                                                        Fixtures.               
XXXXX               Resilient Floor Coverings Manufacturing.  R                 *3069  Fabricated Rubber        
                                                                                        Products, NEC (Rubber   
                                                                                        Resilient Floor         
                                                                                        Coverings).             
                                                                                 3996  Hard Surface Floor       
                                                                                        Coverings, NEC.         
XXXXX               All Other Plastics Products               R                 *3053  Gaskets, Packing and     
               Manufacturing.                                                           Sealing Devices         
                                                                                        (Plastics Gaskets,      
                                                                                        Packing Sealing         
                                                                                        Devices).               
                                                                                *3089  Plastics Products, NEC   
                                                                                        (Except Plastics Pipe   
                                                                                        Fittings and Plastics   
                                                                                        Sausage Casings).       
----------------------------------------------------------------------------------------------------------------



                                                     Table 2                                                    
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.                                                  
----------------------------------------------------------------------------------------------------------------
          1987 USIC code               1987 USIC description                  1997 U.S. description             
----------------------------------------------------------------------------------------------------------------
2812.............................  Alkalies and Chlorine.......  Alkalies and Chlorine Manufacturing.           
2813.............................  Industrial Gases............  Industrial Gases Manufacturing (pt).           
2816.............................  Inorganic Pigments..........                                                 
                                     Inorganic Pigments, Except  Inorganic Dyes and Pigments Manufacturing (pt).
                                    Bone and Lamp Black.                                                        

[[Page 38443]]
                                                                                                                
                                     Bone and Lamp Black.......  Carbon Black Manufacturing (pt).               
2819@............................  Industrial Inorganic                                                         
                                    Chemicals, NEC                                                              
                                     Activated Carbon and        Other Miscellaneous Chemical Preparations      
                                    Charcoal.                     Manufacturing (pt).                           
                                     Alumina...................  Primary Aluminum Manufacturing (pt).           
                                     Inorganic Dyes............  Inorganic Dyes and Pigments Manufacturing (pt).
                                     Other.....................  Other Miscellaneous Inorganic Chemicals        
                                                                  Manufacturing (pt).                           
2821.............................  Plastics Materials and        Plastics Materials and Resins Manufacturing.   
                                    Resins.                                                                     
2822.............................  Synthetic Rubber............  Synthetic Rubber Manufacturing.                
2823.............................  Cellulosic Manmade Fibers...  Cellulosic Manmade Fibers Manufacturing.       
2824.............................  Noncellulosic Organic Fibers  Noncellulosic Organic Fibers Manufacturing.    
2833.............................  Medicinals and Botanical....  Medicinals and Botanicals Manufacturing.       
2834.............................  Pharmaceutical Preparations.  Pharmaceutical Preparations Manufacturing (pt).
2835@............................  Diagnostic Substances                                                        
                                     Diagnostic Substances,      Pharmaceutical Preparations Manufacturing (pt).
                                    Except In-Vitro Diagnostic.                                                 
                                     In-Vitro Diagnostic         In-Vitro Diagnostic Substances Manufacturing.  
                                    Substances.                                                                 
2836.............................  Biological Products, Except   Biological Products, Except Diagnostic         
                                    Diagnostic.                   Manufacturing.                                
2841.............................  Soaps and Other Detergents..  Soaps and Other Detergents Manufacturing (pt). 
2842.............................  Polishes and Other            Polishes and Other Sanitation Goods            
                                    Sanitation Goods.             Manufacturing.                                
2843.............................  Surface Active Agents.......  Surface Active Agents Manufacturing.           
2844.............................  Toilet Preparations                                                          
                                     Toilet Preparations,        Toilet Preparations Manufacturing.             
                                    Except Toothpaste.                                                          
                                     Toothpaste................  Soap and Other Detergents Manufacturing (pt).  
2851.............................  Paints and Allied Products..  Paints and Coatings Manufacturing (pt).        
2861.............................  Gum and Wood Chemicals......  Gum and Wood Chemicals Manufacturing.          
2865@............................  Cyclic Crudes and                                                            
                                    Intermediates                                                               
                                     Aromatics.................  Petrochemicals Manufacturing (pt).             
                                     Organic Dyes and Pigments.  Organic Dyes and Pigments Manufacturing (pt).  
                                     Other.....................  Cyclic Crudes and Intermediates Manufacturing. 
2869@............................  Industrial Organic                                                           
                                    Chemicals, NEC                                                              
                                     Aliphatics................  Petrochemicals Manufacturing (pt).             
                                     Carbon Bisulfide..........  All Other Inorganic Chemicals Manufacturing    
                                                                  (pt).                                         
                                     Ethyl Alcohol.............  Distilled and Blended Liquors Manufacturing    
                                                                  (pt).                                         
                                     Fatty Acid Esters.........  Other Miscellaneous Chemicals Preparations     
                                                                  Manufacturing (pt).                           
                                     Fluorocarbon Gases........  Industrial Gases Manufacturing (pt).           
                                     Other.....................  Other Miscellaneous Organic Chemicals          
                                                                  Manufacturing.                                
2873.............................  Nitrogenous Fertilizers.....  Nitrogenous Fertilizers Manufacturing.         
2874.............................  Phosphatic Fertilizers......  Phosphatic Fertilizers Manufacturing.          
2875.............................  Fertilizers, Mixing Only....  Fertilizers, Mixing Only Manufacturing.        
2879.............................  Agricultural Chemicals, NEC.  Pesticides and Other Agricultural Chemicals    
                                                                  Manufacturing.                                
2891.............................  Adhesives and Sealants......  Adhesives and Sealants Manufacturing.          
2892.............................  Explosives..................  Explosives Manufacturing.                      
2893.............................  Printing Inks...............  Printing Ink Manufacturing (pt).               
2895.............................  Carbon Black................  Carbon Black Manufacturing (pt).               
2899.............................  Chemical Preparations, NEC                                                   
                                     Frit......................  Paints and Coatings Manufacturing (pt).        
                                     Writing and Drawing Inks..  Printing Ink Manufacturing (pt).               
                                     Other.....................  Other Miscellaneous Chemical Preparations      
                                                                  Manufacturing (pt).                           
2911.............................  Petroleum Refining..........  Petroleum Refineries.                          
2951.............................  Asphalt Paving Mixtures and   Asphalt Paving Mixtures and Blocks             
                                    Blocks.                       Manufacturing.                                
2952.............................  Asphalt Felts and Coatings..  Asphalt Felts and Coatings Manufacturing.      
2992.............................  Lubricating Oils and Greases  Lubricating Oils and Greases Manufacturing.    
2999.............................  Petroleum and Coal Products,  All Other Petroleum and Coal Products          
                                    NEC.                          Manufacturing (pt).                           
3011.............................  Tires and Inner Tubes.......  Tires and Inner Tubes Manufacturing.           
3021.............................  Rubber and Plastics Footwear  Rubber and Plastics Footwear Manufacturing.    
3052.............................  Rubber and Plastics Hose and  Rubber and Plastics Hose and Belting           
                                    Belting.                      Manufacturing.                                
3053@............................  Gaskets, Packings, and                                                       
                                    Sealing Devices                                                             
                                     Cork Gaskets, Packing, and  Other Miscellaneous Wood Products Manufacturing
                                    Sealing Devices.              (pt).                                         
                                     Metal Gaskets, Packing,     Other Miscellaneous Fabricated Metal Products  
                                    and Sealing Devices.          Manufacturing (pt).                           
                                     Plastics Gaskets, Packing,  All Other Plastics Products Manufacturing (pt).
                                    and Sealing Devices.                                                        
                                     Rubber Gaskets, Packing,    All Other Rubber Products Manufacturing (pt).  
                                    and Sealing Devices.                                                        

[[Page 38444]]
                                                                                                                
3061.............................  Mechanical Rubber Products..  Mechanical Rubber Products Manufacturing.      
3069.............................  Fabricated Rubber Products,                                                  
                                    NEC                                                                         
                                     Rubberized Fabric.........  Coated Fabrics Including Rubberized Mills (pt).
                                     Rubber Resilient Floor      Resilient Floor Covering Manufacturing (pt).   
                                    Covering.                                                                   
                                     Other.....................  All Other Rubber Products Manufacturing (pt).  
3081.............................  Unsupported Plastics Film     Unsupported Plastics Films and Sheets, Except  
                                    and Sheets, Except            Packaging Manufacturing (pt).                 
                                    Packaging.                                                                  
3082.............................  Unsupported Plastics Profile  Unsupported Plastics Profile Shapes            
                                    Shapes.                       Manufacturing (pt).                           
3083.............................  Laminated Plastics Plate,                                                    
                                    Sheet                                                                       
                                     Acrylic Sheets............  Unsupported Plastics Films and Sheets, Except  
                                                                  Packaging Manufacturing (pt).                 
                                     Other.....................  Laminated Plastics Plates, Sheets, and Shapes  
                                                                  Manufacturing.                                
3084@............................  Plastics Pipes..............  Plastics Pipes and Pipe Fittings Manufacturing 
                                                                  (pt).                                         
3085.............................  Plastics Bottles............  Plastics Bottles Manufacturing.                
3086.............................  Plastics Foam Products                                                       
                                     Urethane Foam Products....  Urethane Foam Products Manufacturing.          
                                     Polystyrene Foam Products.  Polystyrene Foam Products Manufacturing.       
3087.............................  Custom Compounding of         Custom Compounding of Purchased Resins         
                                    Purchased Resins.             Manufacturing.                                
3088.............................  Plastics Plumbing Fixtures..  Plastics Plumbing Fixtures Manufacturing.      
3089.............................  Plastics Products, NEC                                                       
                                     Pipe Fittings.............  Plastics Pipes and Pipe Fittings Manufacturing 
                                                                  (pt).                                         
                                     Plastics Sausage Casings..  Unsupported Plastics Profile Shapes            
                                                                  Manufacturing (pt).                           
                                     Other.....................  All Other Plastics Products Manufacturing (pt).
----------------------------------------------------------------------------------------------------------------


Description of Changes to the U.S. System

    1. Petroleum and Coal Products Manufacturing--There was one change 
from the 1987 industry structure for this sector.
    Coke ovens, not operated with a blast furnace transferred from 1987 
Industry Code 3312, Blast Furnaces and Steel Mills to the 1997 Other 
Petroleum and Coal Products, NEC.
    The number of 1997 petroleum and coal products industries remains 
unchanged at five from 1987. For time series linkage, all five 1987 
industries are comparable within three percent of the 1997 industries.
    2. Chemicals Manufacturing--There were five new industries added to 
the 1997 industry structure for this industry subsector. New industries 
were created for:
    Petrochemicals Manufacturing from parts of 1987 Industry Code 2865, 
Cyclic Crudes and Intermediates and 1987 Industry Code 2869, Industrial 
Organic Chemicals, NEC.
    Organic Dyes and Pigments Manufacturing from part of old Industry 
Code 2865, Cyclic Crudes and Intermediates.
    In-Vitro Diagnostic Substances Manufacturing from part of old 
Industry Code 2835, Diagnostic Substances.
    Photographic Films, Papers, Plates, and Chemicals Manufacturing 
from part of 1987 Industry Code 3861, Photographic Equipment and 
Supplies.
    Custom Compounding Purchased Resins Manufacturing transferred from 
the 1987 Major Group Code 30, Rubber and Miscellaneous Plastics 
Products.
    Two activities transferred out of 1987 Major Group 28, Chemicals 
and Allied Products.
    Alumina transferred from 1987 Industry Code 2819, Industrial 
Inorganic Chemicals, NEC into Primary Aluminum Manufacturing.
    Ethyl Alcohol transferred from 1987 Industry Code 2869, Industrial 
Organic Chemicals into Distilled and Blended Liquors Manufacturing.
    Two activities transferred into the 1997 Chemicals Manufacturing.
    Drawing ink and India ink transferred from old Industry Code 3952, 
Lead Pencils and Art Goods into Printing Ink Manufacturing.
    Matches transferred from old Industry Code 3999, Manufacturing 
Industries, NEC into All Other Miscellaneous Chemical Preparations.
    Also, there were several activities that transferred within the 
chemical industry. The number of chemical industries increased from 29 
in 1987 to 34 in 1997. For time series linkage, 25 of the 29 1987 
industries are comparable within three percent of the 1997 industries.
    3. Rubber and Plastics Products Manufacturing--There were six new 
industries added to the 1997 industry structure for this industry 
subsector.
    Tire Rebuilding and Repair transferred from the 1987 Services Major 
Group Code 75, Auto Repair, Services, and Parking.
    Unsupported Plastics Packaging Films and Sheets Manufacturing from 
part of 1987 Industry Code 2671, Paper Coated and Laminated, NEC.
    Unsupported Plastics Bags from part of 1987 Industry Code 2673, 
Bags: Plastics, Laminated, and Coated.
    Polystyrene Foam Products from part of 1987 Industry Code 3086, 
Plastics Foam Products.
    Urethane Foam Products from part of 1987 Industry Code 3086, 
Plastics Foam Products.
    Resilient Floor Coverings from parts of 1987 Industry Code 3069, 
Fabricated Rubber Products, NEC and 1987 Industry Code 3996, Hard 
Surface Floor Coverings, NEC.
    Three industries were removed from this industry group.
    Rubber and Plastics Footwear transferred into the 1997 NAICS 
Industry Subsector, Leather and Allied Products Manufacturing.
    Gaskets, Packings, and Sealing Devices were deleted and the 
products were split into various residual industries by material.
    Custom Compounding Purchased Resins transferred into the 1997 NAICS 
Industry subsector, Chemicals Manufacturing.
    One activity transferred out of the 1987 Major Group, Rubber and 
Plastics Products.
    Rubberized Fabric transferred from the 1987 Industry Code 3069, 
Fabricated 

[[Page 38445]]
Rubber Products, NEC to 1997 NAICS Industry, Coated Fabric Mills 
including Rubberized Fabric Mills.
    Also, there were several activities that transferred within the 
rubber and plastics products industries. The number of rubber and 
plastics products industries increased from 15 in 1987 to 17 in 1997. 
For time series linkage, 13 of the 15 1987 industries are comparable 
within three percent of the 1997 industries.
Part II--Proposed New Industry Structure for Broadcasting and 
Telecommunications

Section A--NAICS Structure and Narrative

North American Industry Classificattion System
(NAICS)
Agreement Number 2
    This Document represents the proposed agreement on the structure of 
the North American Industry Classification System (NAICS) for the 
following industries:

Broadcasting and Telecommunications

    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 
discussions 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 May 18 and 19 in Ottawa, Canada.

------------------------------------------------------------------------
           Accepted                       Signature               Date  
------------------------------------------------------------------------
Canada........................  /S/ Jacob Ryten..............    5/19/95
Mexico........................  /S/ Enrique Ordaz............    5/19/95
United States.................  /S/ Jack E. Triplett.........    5/19/95
------------------------------------------------------------------------


                     Attachment 1.--NAICS Structure                     
                                                                        
                                                                        
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.                         

Attachment 2--North American Industry Classification System

Draft Classification for:
    Broadcasting and Telecommunications

    Representatives of the statistical agencies of Canada, Mexico and 
the United States have agreed to a draft industry classification for 
the Broadcasting and Telecommunications subsector. The draft 
establishes three industry groups and nine industries. It has not yet 
been determined in which industry sector in NAICS the Broadcasting and 
Telecommunications industry subsector will be included.

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. Based on existing data, all three countries 
expect to be able to publish data regularly at the NAICS industry level 
of the NAICS structure with the exception of satellite 
telecommunications, which will be published only in the United States. 
All countries agree on the detailed definitions of the classes.
    The classification improves comparability with other countries. 
With the exception of radio dispatch services and radio and television 
relay systems, all industries are compatible with the 2-digit level of 
the current International Standard Industrial Classification of All 
Economic Activities (ISIC, Revision 3) of the United Nations. Radio 
dispatch services and radio and television relay systems activities are 
not significant.
    Other objectives of the NAICS project have also been met. In an 
effort to identify high technology and new and emerging industries, new 
industries for cable networks, and satellite telecommunications have 
been identified. A relatively new economic development has been 
identified by creating an industry for telecommunications resellers.
    In addition to the above objectives of the NAICS project, the 
classification meets the objectives of an industry classification. The 
classifications are homogeneous and account for most of the activities 
that define them. In addition, they are economically significant. 
Finally, disruptions to time series at the NAICS industry level have 
been kept to a minimum. The major changes in country detail are well-
defined and can be taken into account in linking time series.

Limitations of the Classification

    There are some limitations to the draft Broadcasting and 
Telecommunications hierarchy. First, the proposed structure attempts to 
describe the subsector as it currently exists. It is therefore rooted 
in today's technology and regulatory environment and it reflects the 
current profile of service providers. However, many are anticipating 
fundamental changes in this sector. For instance, the distinction 
between the Wired Telecommunication Carriers industry 

[[Page 38446]]
and the Cable and Program Distribution industry may not be viable in 
the future if both industries are engaged in the carriage of voice 
(basic telephone service), data, and video (including television 
programs). Similarly, the systems that are now used to distribute 
television programs may well be used in the future to distribute other 
types of products such as games and software or be used for other 
purposes such as interactive home shopping or banking. In such an 
environment, the provision of menus, interactive controls, and billing 
services could become an integral part of the bundle of services 
provided by carriers.
    Secondly, it may be argued that for some purposes a number of 
industries that are important users of telecommunications, as outlined 
in the proposal, should be included in this subsector. These include 
telephone answering services and other message services that may 
include the use of paging and voice mail, phone booth operations, and 
on-line information services. These industries have not been included 
in this subsector as they are users of telecommunications services, not 
providers of the telecommunications services as defined in the 
proposal. They will be classified elsewhere in NAICS.
    These few examples illustrate the difficulty of building a 
classification for an evolving sector that will stand the test of time.

Constraints on the NAICS Classification

    A number of industries that can appropriately be defined in terms 
of production distinctions could not be published in all countries 
because of considerations of size and confidentiality.

A General Outline

    The Broadcasting and Telecommunications subsector has been defined 
to include 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 operates 
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 generate revenues from the sale of air 
time to advertisers, and from donations, subsidies, and/or the sale of 
programs. The distinction between radio and television broadcasting 
involves the use of equipment dealing in audio versus audio/video 
signal.
    The Cable Networks and Program Distribution industry group includes 
two types of establishments. Cable networks operate studios and 
facilities for the broadcasting of programs that are typically 
narrowcast 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 and the delivery of 
the programs to customers is handled by other establishments that 
operate cable systems, direct-to-home satellite systems, or other 
similar systems. These distribution systems establishments are 
classified to the Cable and Program Distribution industry.
    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.
    Wired Telecommunications Carriers operate and maintain switching 
and transmission facilities (usually land lines and microwave) to 
provide one-to-one communications via landlines (including microwave) 
or a combination of landline and satellite communications.
    Wireless Telecommunications Carriers, Except Satellite operate and 
maintain switching and transmission facilities to provide one-to-one 
communications via airwaves. The United States classification further 
distinguishes wireless carriers on the basis of technology by 
separating paging services and other wireless services such as cellular 
and personal communications services.
    Telecommunications Resellers provide services similar to those of 
telecommunications carriers but do not operate and maintain a network. 
They principally purchase the services of carriers for resale to 
customers.
    The Satellite Telecommunications industry principally provides 
point-to-point communications services to other establishments in the 
telecommunications and broadcasting industries by forwarding 
communications signals via a system of satellites. The Other 
Telecommunications industry includes establishments that specialize in 
the provision of other types of services such as satellite tracking, 
radar station operations, and overseas telecommunications (except for 
satellite telecommunications).

Some Changes to the National Classifications

    This section highlights some of the significant changes to the 
existing national industry classification systems.
    The only change to USIC 4832 Radio Broadcasting Stations is to add 
detail to separate the radio networks from the radio stations. It was 
felt that the programming function of the network was a significant 
production difference. There is a significant change for Mexico in that 
the draft proposes the elimination of the designation of private versus 
public.
    The change in the Television Broadcasting industry for the U.S. is 
restricted to a title change to clarify the proper classification for 
television networks. The issue of private versus public television is a 
change for Mexico.
    Cable Networks is similar to Radio Broadcasting, in that the 
programming function is being used to identify these establishments as 
a separate industry. This would be a new classification for all three 
countries.
    Cable and Program Distribution establishments are separated from 
the cable networks based on the absence of the programming function. 
This would be a new industry for all three countries.
    The Wired Telecommunications Carriers industry group has been 
changed to include the activities of USIC 4822 Telegraph and Other 
Message Communications. Detail was also added for carriers and 
resellers. USIC 4822 has been a declining industry and has assumed more 
and more of the characteristics of the wired telecommunications 
industry. This change also improved comparability with both Mexico and 
Canada.
    Recent changes in the telephone industry have paved the way for new 
businesses. The most prevalent are the telecommunications resellers. A 
reseller purchases communications services from the telecommunications 
carrier and resells the services to its customers. The reseller does 
not operate the communications network but instead may operate only the 
switching system to connect customers to the carriers' network. 
Telecommunication Carriers and Telecommunications Resellers are new 
industries for all three countries. It is a new economic development 
and, as such, is being identified as a new and emerging industry. 

[[Page 38447]]

    Changes in the Wireless Telecommunications Carriers, Except 
Satellite industry involve moving radio dispatch from USIC 4899 and 
adding detail to reflect different technologies and updating the 
terminology. The production function of radio dispatch is similar to 
that of wireless telecommunications. This change also increased 
comparability with Canada and Mexico. Paging was found to have a 
distinct production function. Canada could not support this activity as 
a NAICS industry so it was added as a 5-digit U.S. industry. Wireless 
Telecommunications Carriers, Except Satellite will be a new industry 
for all three countries.
    Satellite Telecommunications is a new industry in all three 
countries. It is a new technology that is now being identified as a new 
and emerging industry.
    Other Telecommunications is a new industry for all three countries.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, 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 this NAICS 
industry subsector. In the following tables, proposed 5-digit detail is 
indicated in italics. 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                                                    
 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.                 
----------------------------------------------------------------------------------------------------------------
                                                                            1987 USIC                           
                      1997 NAICS and U.S. description          Status code     code      1987 USIC description  
----------------------------------------------------------------------------------------------------------------
XX            Broadcasting and Telecommunications                                                               
XXX             Radio and Television Broadcasting                                                               
XXXX              Radio Broadcasting                                                                            
XXXXX               Radio Networks..........................  N                 *4832  Radio Broadcasting       
                                                                                        Stations.               
XXXXX               Radio Stations..........................  N                 *4832  Radio Broadcasting       
                                                                                        Stations.               
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.    
XXXX          Cable and Program Distribution................  N                 *4841  Cable and Other Pay      
                                                                                        Television Services.    
XXX           Telecommunications                                                                                
XXXX            Wired Telecommunications Carriers...........  N                 *4813  Telephone Communications,
                                                                                        Except Radiotelephone   
                                                                                        (Carriers).             
                                                                                 4822  Telegraph and Other      
                                                                                        Message Communications. 
XXXX            Wireless Telecommunications Carriers, Except  N                                                 
               Satellite.                                                                                       
XXXXX               Paging..................................  N                 *4812  Radiotelephone           
                                                                                        Communications (Paging  
                                                                                        Carriers).              
XXXXX             Cellular and Other Wireless                 N                 *4812  Radiotelephone           
               Telecommunications.                                                      Communications (Cellular
                                                                                        Carriers).              
                                                                                *4899  Communication 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  Communication Services,  
                                                                                        NEC (Satellite).        
XXXX            Other Telecommunications....................  N                 *4899  Communication Services,  
                                                                                        NEC.                    
----------------------------------------------------------------------------------------------------------------


                                                     Table 2                                                    
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.    
----------------------------------------------------------------------------------------------------------------
          1987 USIC code               1987 USIC description                  1997 U.S. description             
----------------------------------------------------------------------------------------------------------------
4812@............................  Radiotelephone                Wireless Telecommunications (pt).              
                                    Communications.              Telecommunications Resellers (pt).             
4813@............................  Telephone Communications,     Wired Telecommunications Carriers (pt.).       
                                    Except Radiotelephone.       Telecommunications Resellers (pt.).            
4822@............................  Telegraph and Other Message   Wired Telecommunications Carriers (pt.).       
                                    Communications.                                                             
4832.............................  Radio Broadcasting Stations.  Radio Networks.                                
                                                                 Radio Stations.                                
4833.............................  Television Broadcasting       Television Broadcasting.                       
                                    Stations.                                                                   

[[Page 38448]]
                                                                                                                
4841.............................  Cable and Other Pay           Cable Networks.                                
                                    Television Services.         Cable and Program Distribution.                
4899.............................  Communications Service, NEC.  Wireless Telecommunications Carriers (pt).     
                                                                 Satellite Telecommunications.                  
                                                                 Other Telecommunications.                      
----------------------------------------------------------------------------------------------------------------


Description of Changes to the U.S. System

    The Broadcasting and Telecommunications subsector has been 
completely restructured for 1997 to reflect the changing technology of 
the subsector. New industries are the following:
    Radio Networks from part of 1987 Industry Code 4832, Radio 
Broadcasting Stations.
    Radio Stations from part of 1987 Industry Code 4832, Radio 
Broadcasting Stations.
    Cable Networks from part of 1987 Industry Code 4841, Cable and 
Other Pay Television Services.
    Cable and Program Distribution from part of 1987 Industry Code 
4841, Cable and Other Pay Television Services.
    Wired Telecommunications Carriers from part of 1987 Industry Code 
4813, Telephone Communications, except Radiotelephone and Industry Code 
4822, Telegraph and Other Message Communications.
    Paging from part of 1987 Industry Code 4812, Radiotelephone 
Communications.
    Cellular and Other Wireless Telecommunications from parts of 1987 
Industry Codes 4812, Radiotelephone Communications and Industry Code 
4899, Communications Services, Not Elsewhere Classified.
    Telecommunications Resellers from part of 1987 Industry Code 4812, 
Radiotelephone Communications and part of Industry Code 4813, Telephone 
Communications, Except Radiotelephone.
    Satellite Telecommunications from part of 1987 Industry Code 4899, 
Communications Services, Not Elsewhere Classified.
    Other Telecommunications from part of 1987 Industry Code 4899, 
Communications Services, Not Elsewhere Classified.
    The number of industries in this industry subsector increased from 
7 in 1987 to 11 in 1997. For time series linkage, 4 of the 7 1987 
industries are comparable within three percent of the 1997 industries. 
For the other 3 industries, changes involve splitting a part of 1987 
SIC 4-digit industries to obtain more industry detail, in response to 
new economic and technological developments in this subsector; the new 
more detailed industries can readily be reaggregated for analytical 
purposes where time series comparability is important.

Part III--Proposed New Industry Structure for Food Services and 
Drinking Places and Accommodations

Section A--NAICS Structure and Narrative

North American Industry Classification System
(NAICS)
Agreement Number 3
    This Document represents the proposed agreement on the structure of 
the North American Industry Classification System (NAICS) for the 
following industries:

Foodservices and Drinking Places
Accommodations

    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 
discussions 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 May 18 and 19 in Ottawa, Canada.

------------------------------------------------------------------------
           Accepted                       Signature               Date  
------------------------------------------------------------------------
Canada........................  /S/ Jacob Ryten..............    5/19/95
Mexico........................  /S/ Enrique Ordaz............    5/19/95
United States.................  /S/ Jack E. Triplett.........    5/19/95
------------------------------------------------------------------------


                     Attachment 1.--Naics Structure                     
                                                                        
                                                                        
XX                Foodservices and Drinking Places.                     
XXX                 Full-Service Restaurants.                           
XXXX                  Full-Service Restaurants.                         
XXX                 Limited-Service Eating Places.                      
XXXX                  Limited-Service Restaurants and Cafeterias.       
XXXX                  Refreshment Places.                               
XXX                 Special Foodservices.                               
XXXX                  Foodservice Contractors.                          
XXXX                  Caterers.                                         
XXXX                  Mobile Caterers.                                  
XXX                 Bars, Taverns, and Other Drinking Places (Alcoholic 
                   Beverages).                                          
XXXX                  Bars, Taverns, and Other Drinking Places          
                   (Alcoholic Beverages).                               
XX                Accommodations.                                       
XXX                 Traveler Accommodations.                            
XXXX                  Hotels and Motels, except Casinos.                
XXXX                  Casino Hotels.                                    

[[Page 38449]]
                                                                        
XXXX                  Other Traveler Accommodations.                    
XXX                 Recreational and Other Accommodations.              
XXXX                  Recreational Vehicle Parks and Camps.             
XXXX                  Rooming and Boarding Houses.                      


Attachment 2--North American Industry Classification System

Draft Classification for:
    Foodservices and Drinking Places Accommodations

    Representatives of the statistical agencies of Canada, Mexico and 
the United States have agreed to a draft industry classification for 
Foodservices and Drinking Places and Accommodations. These are further 
subdivided into six industry groups and ten industries.

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. Based on existing data, all three countries 
expect to be able to publish data regularly at the NAICS 4-digit 
industry level of the NAICS structure with the exception of Casino 
Hotels, which will be published only in the United States. All 
countries agree on the detailed definitions of the industries.
    The classification improves comparability with other countries. The 
grouping of the Accommodations Subsector with the Foodservices and 
Drinking Places Subsector achieves comparability with the International 
Standard Industrial Classification of All Economic Activities (ISIC, 
Revision 3) of the United Nations at the 2-digit level, with the 
exception of doughnut shops which are included in the Foodservices and 
Drinking Places Subsector in NAICS and in the Manufacturing Division in 
ISIC. This means that the NAICS classification is the same as, or part 
of, a single ISIC 2-digit Division.
    Other objectives of the NAICS project have also been met. New 
industries for different types of restaurants have been designated. 
These classifications reflect changes in the industry that have 
occurred in the past but have never been identified in the 
classification system.
    In addition to the above objectives of the NAICS project, the 
classification meets the objectives of an industry classification. The 
industries are homogeneous and they are economically significant. 
Finally, disruptions to time series at the NAICS industry level have 
been kept to a minimum. In the United States, the major changes to 
existing classifications at the country level establish additional 
detail in the industry group, which can readily be linked to construct 
time series.
Foodservices and Drinking Places

Limitations of the Classification

    There are some limitations to the draft foodservices and drinking 
places hierarchy. A number of related industries that provide 
foodservices as a secondary activity are not included. These are such 
activities as dinner theaters, dinner cruises, and fraternal 
organizations that provide foodservices to their members. These 
activities are not included in this industry subsector but will be 
classified in other service related industry subsectors based on their 
primary activity.

Constraints on the NAICS Classification

    A number of industries that can appropriately be defined in terms 
of production distinctions could not be published in all countries 
because of considerations of size and confidentiality. In addition, the 
way activities are combined in establishments differs to some extent in 
the different countries. It is anticipated that each country will 
publish additional categories that comprise sub-divisions of NAICS 
industries, to present data for activities that are nationally 
significant.

A General Outline

    The foodservices and drinking places grouping of industries is 
defined to include establishments that are primarily engaged in 
preparing meals, snacks, and beverages to customer order for immediate 
consumption, primarily on the premises. Within the subsector Food 
Services and Drinking Places, the industry groups (Full-Service 
Restaurants; Limited-Service Eating Places; Special Foodservices; and 
Bars, Taverns, and Other Drinking Places) reflect the level of service 
provided. The NAICS industries are described below.
    Full-Service Restaurants provide a complete menu of full meals and 
full waiter/waitress service.
    Limited-Service Eating Places provide a limited menu, limited 
waiter/waitress service, or both. This group is separated into limited-
service restaurants and cafeterias. Limited-Service includes fast food 
and take out, plus cafeterias which are distinguished based on the 
cafeteria-style serving equipment. Refreshment places include doughnut 
shops, pretzel shops, cookie shops, coffee shops, and other such 
locations that primarily prepare and provide a single-item menu of food 
and drink for immediate consumption. Establishments that primarily 
resell food and drink prepared elsewhere, and that do not provide an 
eating place, are classified in retail trade.
    Special Foodservices provide foodservices under special conditions. 
The group distinguishes Foodservice Contractors, Caterers, and Mobile 
Caterers. Foodservice Contractors operate under a long term contract to 
provide foodservices primarily in institutional, office, or industrial 
locations. Caterers provide event-based foodservice for both households 
(weddings, etc.) and industrial accounts (trade shows, etc.). Mobile 
Caterers are distinguished based on the use of a specialized vehicle 
and mobile service. Food carts that prepare foods rather than merely 
selling food prepared elsewhere are classified in this industry.
    Bars, Taverns, and Other Drinking Places (Alcoholic Beverages) are 
distinguished based on the use of special equipment, training and 
skills in the preparation and serving of alcoholic beverages.

Some Changes to National Classification

    This section highlights some of the significant changes to existing 
national industry classifications. For foodservices, all countries have 
had separate industries based on food versus alcoholic beverages; 
however, this draft proposes new detail for the U.S. and a redefinition 
of many of the industries for both Canada and Mexico.
    For Canada, this draft regroups the activities included in CSIC 
9211, 9212, 

[[Page 38450]]
and 9213. Full-Service includes some of the operations that are 
currently in CSIC 9211 and 9212. The remaining establishments in these 
industries, namely those providing limited service are combined with 
the establishments in CSIC 9213 to form the Limited-Service Eating 
Places industry of NAICS. New detail for foodservices contractors, 
caterers, and mobile caterers has been established from within CSIC 
9214.
    For Mexico, parts of CMAP 931011 (all but cafeterias, dining cars, 
and vending machines), 931013, and 931015 are combined in the full-
service classification. CMAP 931012 (except industrial cafeterias), 
931014, and 931015 make up the new Limited-Service Eating Place 
industry group.
    For the United States, USIC 5812 is split into separate detail for 
full-service, limited-service, and special services restaurants with 
additional U.S. detail for special services including foodservice 
contractors, caterers, and mobile caterers, a total of six new 
industries.

Accommodations

Limitations and Constraints of the NAICS Classification

    There are some limitations to the draft accommodations structure. 
Accommodation establishments, especially hotels and motels, provide 
many services other than lodging. For example, many establishments have 
restaurants. Others have recreational facilities. Small establishments 
with very limited lodging facilities may offer no amenities at all. 
Hotels and motels are accordingly not homogeneous with respect to the 
services they provide. Moreover, this is by far the largest industry in 
the subsector. Nevertheless, no acceptable way was found to clearly 
demarcate the hotel and motel 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. 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 NAICS industry level in order to ensure full 
comparability among the three countries.
A General Outline

    The accommodations area is defined to include establishments that 
are primarily engaged in providing short-term accommodations. The 
industry groups and industries within accommodations have been grouped 
based on the various levels of services and facilities provided. The 
NAICS industries are described below.
    Hotels and Motels primarily provide traditional types of lodging 
services to travelers. In addition to lodging, a range of other 
services may be provided.
    Casino Hotels include both lodging and gaming casinos as an 
integrated facility. Both the lodging and gaming services are generally 
major operations and a separate industry has been created to classify 
these establishments. Casino Hotels are classified in this industry 
regardless of whether separate data are available for the gambling and 
hotel activities of these establishments. This industry is becoming 
large in the United States, though it does not currently exist in 
Canada and Mexico.
    Other Traveler Accommodations include bed and breakfast 
establishments, hostels, and other establishments that provide lodging 
to travelers but provide few of the types of ancillary services that 
hotels and motels commonly provide.
    Recreational Vehicle Parks and Camps provide special types of 
accommodations for travelers, vacationers, and others. The facilities 
are often outdoors (such as campsites) and are recreational in nature.
    Rooming and Boarding Houses include establishments renting rooms, 
with or without board, for indefinite periods. This industry primarily 
includes establishments known as rooming houses and student residences.

Changes to the National Classifications

    This section highlights some changes to each country's current 
industry classification of accommodations. The most significant are:
    For the United States, the distinction between membership and non-
membership organizations that provide lodging has been deleted from the 
classification. Such activities will be classified based upon the type 
of accommodations being provided. The current industry for hotels and 
motels (SIC 7011) has been divided into four NAICS industries. Also, 
separate industries for recreational vehicle parks and sporting camps 
have been combined.
    For Canada, the proposal regroups four existing industries (CSIC's 
9111, 9112, 9113, 9114) into two NAICS industries within the Traveler 
Accommodations industry group. In addition, three existing industries 
have been combined into a recreational vehicle parks and camp industry.
    For Mexico, the proposal regroups three existing industries (CMAP's 
932001, 932002, 932012) into two NAICS industries within the industry 
group for traveler accommodations.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, the 
three country agreement on NAICS envisions that each country may choose 
to 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 III of this notice. In the 
following tables, proposed 5-digit detail is indicated in italics. 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                                                    
 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.                 
----------------------------------------------------------------------------------------------------------------
                                                                            1987 USIC                           
                      1997 NAICS and U.S. description          Status Code     Code      1987 USIC description  
----------------------------------------------------------------------------------------------------------------
XX            Foodservices and Drinking Places                                                                  
XXX             Full-Service Restaurants                                                                        
                  Full-Service Restaurants..................  N                 *5812  Eating Places.           
XXX             Limited-Service Eating Places                                                                   
XXXX              Limited-Service Restaurants and Cafeterias                                                    
XXXXX               Limited-Service Restaurants.............  N                 *5812  Eating Places(Limited-   
                                                                                        Service Restaurants).   

[[Page 38451]]
                                                                                                                
XXXXX               Cafeterias..............................  N                 *5812  Eating Places            
                                                                                        (Cafeterias).           
XXXX            Refreshment Places..........................  N                 *5812  Eating Places            
                                                                                        (Refreshment Places).   
                                                                                *5461  Retail Bakeries (Snacks).
XXX             Special Foodservices                                                                            
XXXX            Foodservice Contractors.....................  N                 *5812  Eating Places (Food      
                                                                                        Service Contractors).   
XXXX            Caterers....................................  N                 *5812  Eating Places (Caterers).
XXXX            Mobile Caterers.............................  N                 *5963  Direct Selling           
                                                                                        Establishments (Mobile  
                                                                                        Caterers).              
XXX           Bars, Taverns, and Other Drinking Places                                                          
               (Alcoholic Beverages).                                                                           
XXXX            Bars, Taverns, and Other Drinking Places      E                  5813  Drinking Places          
               (Alcoholic Beverages)                                                    (Alcoholic Beverages).  
XX            Accommodations                                                                                    
XXX             Traveler Accommodations                                                                         
XXXX              Hotels and Motels, except Casino Hotels...  R                 *7011  Hotels and Motels (Hotels
                                                                                        and Motels, Except      
                                                                                        Casino Hotels).         
XXXX                                                                            *7041  Organization Hotels and  
                                                                                        Lodging Houses, on      
                                                                                        Membership Basis (Except
                                                                                        Hotels).                
                                                                                                                
XXXX              Casino Hotels.............................  N                 *7011  Hotels and Motels (Casino
                                                                                        Hotels).                
XXXX            Other Traveler Accommodations                                                                   
XXXXX             Bed and Breakfast Inns....................  N                 *7011  Hotels and Motels (Bed   
                                                                                        and Breakfast Inns)     
XXXXX         All Other Traveler Accommodations ............  N                 *7011  Hotels and Motels (Except
                                                                                        Hotels, Motels and Bed  
                                                                                        and Breakfast Inns).    
                  Recreation and Other Accommodations.......                    *7041  Organization Hotels and  
                                                                                        Lodging Houses, on      
                                                                                        Membership Basis (Except
                                                                                        Hotels)                 
XXXX          Recreational Vehicle Parks and Camps..........                                                    
XXXXX           Sporting and Recreation Camps                 E                  7032  Sporting and Recreational
                                                                                        Camps.                  
XXXXX             Recreational Vehicle Parks and              E                  7033  Recreational Vehicle     
               CampgroundsE.                                                            Parks and Campgrounds   
XXXX          Rooming and Boarding Houses...................  R                  7021  Rooming and Boarding     
                                                                                        Houses.                 
                                                                                *7041  Organization Hotels and  
                                                                                        Lodging Houses, on      
                                                                                        Membership Basis        
                                                                                        (Rooming and Boarding   
                                                                                        Houses).                
----------------------------------------------------------------------------------------------------------------



                                                     Table 2                                                    
 The abbreviation ``pt'' means ``part of''. @ means a time series break has been created that is greater than 3%
                                 of the 1992 revenues for the 1987 SIC industry.                                
----------------------------------------------------------------------------------------------------------------
          1987 USIC code               1987 USIC description                  1997 U.S. description             
----------------------------------------------------------------------------------------------------------------
5812@............................  Eating Places...............  Full-Service Restaurants.                      
                                                                 Limited-Service Restaurants.                   
                                                                 Cafeterias.                                    
                                                                 Refreshment Places (pt).                       
                                                                   Foodservice Contractors.                     
                                                                   Caterers.                                    
5813.............................  Drinking Places.............  Bars, Taverns, and Other Drinking Places       
                                                                  (Alcoholic Beverages).                        
7011.............................  Hotels and Motels...........  Hotels and Motels, except Casino Hotels (pt).  
                                                                 Casino Hotels.                                 
                                                                 Bed and Breakfast Inns.                        
                                                                 All Other Traveler Accommodations, NEC.        
7021.............................  Rooming and Boarding Houses.  Rooming and Boarding Houses (pt).              
7032.............................  Sporting and Recreational     Sporting and Recreation Camps.                 
                                    Camps.                                                                      
7033.............................  Recreational Vehicle Parks    Recreational Vehicle Parks and Campgrounds.    
                                    and Campsites.                                                              
7041@............................  Organization Hotels and       Hotels and Motels, except Casino Hotels (pt.). 
                                    Lodging Houses, on           Rooming and Boarding Houses (pt).              
                                    Membership Basis.                                                           
----------------------------------------------------------------------------------------------------------------


[[Page 38452]]


Description of Changes to the U.S. System

    1. Foodservices and Drinking Places--Seven new industries are added 
to the 1997 industry structure for this industry subsector. New 
industries are the following:
    Full-Service Restaurants from part of 1987 Industry Code 5812, 
Eating Places.
    Limited-Service Restaurants from part of 1987 Industry Code 5812, 
Eating Places.
    Cafeterias from part of 1987 Industry Code 5812, Eating Places.
    Refreshment Places from parts of 1987 Industry Code 5812, Eating 
Places and Industry Code 5461, Retail Bakeries.
    Foodservice Contractors from part of 1987 Industry Code 5812, 
Eating Places.
    Caterers from part of 1987 Industry Code 5812, Eating Places.
    Mobile Caterers transferred from part of 1987 Industry Code 5963, 
Direct Selling Establishments.
    The number of Foodserving and Drinking Places increased from 2 in 
1987 to 8 in 1997. For time series linkage, 1 of the 1987 industries is 
comparable within three percent of the 1997 industries. Industry 5812 
was split into 6 new industries.
    2. Accommodations--Three new industries are added to the 1997 
industry structure for this industry subsector. New industries are the 
following:
    Casino Hotels from part of 1987 Industry Code 7011, Hotels and 
Motels.
    Bed and Breakfast Inns from part of 1987 Industry Code 7011, Hotels 
and Motels.
    Other Traveler Accommodations, NEC from part of 1987 Industry Code 
7011, Hotels and Motels.
    One industry was deleted from this industry subsector.
    Organization Hotels and Lodging Houses, on Membership Basis was 
deleted and the accommodations were split between Hotels and Motels, 
except Casino Hotels and Rooming and Boarding Houses.
    The number of 1997 Accommodations Industries increased from 5 in 
1987 to 7 in 1997. For time series linkage, 4 of the 5 1987 industries 
are comparable within three percent of the 1997 industries.
Sally Katzen,
Administrator, Office of Information and Regulatory Affairs
[FR Doc. 95-18258 Filed 7-25-95; 8:45 am]
BILLING CODE 3110-01-P