[Federal Register Volume 61, Number 25 (Tuesday, February 6, 1996)]
[Notices]
[Pages 4524-4578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2139]




[[Page 4523]]

_______________________________________________________________________

Part II





Office of Management and Budget





_______________________________________________________________________



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

  Federal Register / Vol. 61, No. 25 / Tuesday, February 6, 1996 / 
Notices   

[[Page 4524]]


OFFICE OF MANAGEMENT AND BUDGET


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

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

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

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

SUMMARY: Under Title 44 U.S.C. 3504, the Office of Management and 
Budget (OMB) is seeking public comment on a series of notices 
documenting the development of the new North American Industry 
Classification System (NAICS), the industry classification system being 
proposed to replace the current Standard Industrial Classification 
(SIC) system. All Federal agencies that collect establishment-based 
data are expected to utilize the new system.
    This notice, the fourth related to preparation of NAICS and the 
second in a series seeking comment on proposed industry structures, 
presents the proposed industry structure for the NAICS subsectors 
listed in the Supplementary Information section below.
    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. A final Federal Register notice 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 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.
    A notice was published in the Federal Register, July 26, 1995, 
pp.38436-38452, requesting comment on proposed industry structures for 
petroleum and coal product manufacturing, chemical manufacturing, and 
rubber and plastic manufacturing; for broadcasting and 
telecommunications; and for food services and drinking places and 
accommodations.

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 April 8, 
1996. 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 E-mail.
    To obtain this document via WWW browser, connect to ``http://
www.census.gov'' then select ``Economy,'' then select ``Economy-Wide 
Programs,'' then select ``NAICS Documents.''
    To obtain this document via ftp, log in to ftp.census.gov as 
anonymous, and retrieve the file ``prop01.txt'' from the ``/pub/epcd/
naics'' directory. (That directory also contains previous NAICS Federal 
Register Notices and related documents.)
    To obtain this document via Internet E-mail, send a message to 
[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 E-mail 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 seven parts to this notice. PART I includes the proposals 
for crop production, animal production, forestry and logging, fishing, 
hunting and trapping, and support activities for agriculture; PART II 
includes textile mills, textile product mills, apparel manufacturing, 
and leather and allied product manufacturing; PART III includes food 
and kindred product manufacturing and beverage and tobacco product 
manufacturing; PART IV includes fabricated metal product manufacturing; 
PART V includes machinery manufacturing; PART VI includes electrical 
equipment, 

[[Page 4525]]
appliance, and component manufacturing; PART VII includes 
transportation equipment manufacturing.
    Each of the seven parts of the notice is organized into two 
sections. The first section includes a copy of the proposed agreement 
signed by ECPC, Statistics Canada, and INEGI; the structure of NAICS; 
and an explanation of the structure. For a number of reasons, NAICS 
industries do not always provide as much industry detail as has been 
present in the U.S. SIC. Each country may add additional detailed 
industries, below the 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
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 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 Crop Production; Animal 
Production; Forestry and Logging; Fishing, Hunting, and Trapping; and 
Support Activities for Agriculture and Forestry

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 4

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

Crop Production
Animal Production
Forestry and Logging
Fishing, Hunting, and Trapping
Support Activities for Agriculture and Forestry

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on August 30, 1995--September 1, 1995 in 
Washington, DC.

------------------------------------------------------------------------
              Accepted:                      Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........     9/1/95
Mexico..............................  /S/ Enrique Ordaz......     9/1/95
United States.......................  /S/ Jack E. Triplett...     9/1/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Crop Production
XXX  Grain and Oilseed Farming
XXXX  Wheat Farming
XXXX  Corn Farming
XXXX  Rice Farming
XXXX  Other Grain Farming
XXXX  Soybean Farming
XXXX  Oilseed Farming, except Soybean Farming
XXXX  Dry Pea and Bean Farming
XXX  Root, Tuber, and Peanut Farming
XXXX  Potato Farming
XXXX  Peanut and Other Root and Tuber Farming
XXX  Vegetable and Melon Farming
XXXX  Vegetable and Melon Farming
XXX  Tree Nut and Fruit Farming
XXXX  Orange Groves
XXXX  Other Citrus Groves
XXXX  Tree Nut and Noncitrus Fruit Farming
XXX  Greenhouse, Nursery, and Floriculture Production
XXXX  Food Crops Grown Under Cover
XXXX  Nursery and Floriculture Production
XXX  Other Crop Farming
XXXX  Tobacco Farming
XXXX  Cotton Farming
XXXX  Sugarcane Farming
XXXX  Hay Farming
XXXX  All Other Crop Farming
XX  Animal Production
XXX  Cattle Ranching and Farming
XXXX  Beef Cattle Ranching and Farming, Including Feedlots
XXXX  Dairy Cattle and Milk Production
XXXX  Dual-Purpose Cattle Ranching and Farming
XXX  Hog and Pig Farming
XXXX  Hog and Pig Farming
XXX  Poultry Production
XXXX  Chicken Egg Production
XXXX  Broiler and Other Meat-Type Chicken Production
XXXX  Turkey Production
XXXX  Poultry Hatcheries and Other Poultry Production
XXX  Sheep and Goat Farming
XXXX  Sheep Farming
XXXX  Goat Farming 

[[Page 4526]]

XXX  Animal Aquaculture
XXXX  Animal Aquaculture
XXX  Other Animal Production
XXXX  Apiculture
XXXX  Horses and Other Equine Production
XXXX  Fur-Bearing Animal and Rabbit Production
XXXX  All Other Animal Production
XX  Forestry and Logging
XXX  Timber Tract Operations
XXXX  Timber Tract Operations
XXX  Forest Nurseries and Gathering of Forest Products
XXXX  Forest Nurseries and Gathering of Forest Products
XXX  Logging
XXXX  Logging
XX  Fishing, Hunting, and Trapping
XXX  Fishing
XXXX  Fishing
XXX  Hunting and Trapping
XXXX  Hunting and Trapping
XX  Support Activities for Agriculture And Forestry
XXX  Support Activities for Crop Production
XXXX  Support Activities for Crop Production
XXX  Support Activities for Animal Production
XXXX  Support Activities for Animal Production
XXX  Support Activities for Forestry
XXXX  Support Activities for Forestry

Attachment 2--North American Industry Classification System

    Draft Classification for:

Crop Production
Animal Production
Forestry and Logging
Fishing, Hunting, and Trapping
Support Activities for Agriculture and Forestry

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industry classification for these 
industries.
    The draft classification applies to the five subsectors, Crop 
Production; Animal Production; Forestry and Logging; Fishing, Hunting, 
and Trapping; and Support Activities for Agriculture and Forestry. 
These subsectors are sub-divided into twenty industry groups and forty-
three industries. The subsectors are part of the Agriculture, Forestry, 
Fishing, Hunting, and Trapping sector of the classification.

A General Outline

    The Crop Production industries involve growing crops mainly for 
food and fiber. The industries are grouped by similarity of production 
activity, biological and physiological characteristics, and economic 
requirements. The length of growing season, degree of crop rotation, 
extent of input specialization, labor requirements, and capital demands 
were taken into account when developing the industry structure. The 
production process is typically completed when the raw product or 
commodity grown reaches the ``farm gate'' for market or point of first 
sale or price determination.
    The subsector Animal Production involves raising animals. These 
animals are kept for eventual sale and gain in product value. The 
animals may be raised in various environments, from total confinement 
or captivity to controlled grazing on open range pasture.
    The Forestry and Logging subsector involves timber tract and other 
forest operations. A distinction has been made for the length of the 
production cycle for wood products. The production of short rotation 
woody crops such as cut Christmas trees and cottonwoods for pulpwood 
are considered to be agricultural crop production, and so have been 
placed in Nursery and Floriculture Production. The typical life cycle 
of this process is ten years or less. On the other hand, timber 
production often requires fifty years.
    The Fishing, Hunting, and Trapping subsector includes 
establishments engaged in the harvesting of animals in a natural 
habitat. Activities involving the raising of animals in captivity for 
eventual sale or market are classified in Animal Production, e.g., 
Animal Aquaculture, Fur-bearing Animal and Rabbit Production, and so 
forth.
    The Support Activities for Agriculture and Forestry include 
activities that support growing crops, raising animals and producing 
forest products. These activities are in a separate agricultural, 
forestry, fishing, hunting, and trapping subsector. These 
establishments provide an alternative source of inputs required for the 
production process for a given crop, animal, or forestry industry.

Limitations and Constraints of the Classification

    There are some analytical needs that cannot be met by an industry 
classification. There are needs for information on the total production 
of various agriculture commodities. However, because of vertical 
integration and multiple activities occurring at a single farm, an 
industry classification system will not provide this information. For 
example, wine- making establishments that produce their own grapes will 
be included in the Wines, Brandy and Brandy Spirits industry not the 
Tree Nut and Noncitrus Fruit Farming industry.
    Though the industries are defined by similarities in the types and 
quantities of inputs per unit of output used in production, data users 
should be aware that certain differences in technologies and 
cultivating or production practices exist within industries.
    There are a few factors that constrained the structure and detail 
of the classification in the area under consideration. In the Crop and 
Animal Production subsectors, most activities present in one country 
exist in the others. However, often an activity is not economically 
significant to the same degree in all countries due to factors such as 
climate and soil conditions. For example, cotton cannot be grown in 
Canada. Further, data for some significant activities cannot be 
published for a particular country for reasons of confidentiality. 
Finally, the way activities are combined in establishments differs to 
some extent in the different countries.
    Economic significance in each country also influenced the 
development of the classification structure. For example, apple 
production is significant in the three countries but fruit production, 
excluding apples in Canada, is too small for separate publication at 
the industry level. Each country will publish additional categories 
that comprise subdivisions of the NAICS industries to present data for 
activities that are nationally significant.

Relationship with ISIC

    Most 4-digit NAICS industries in these subsectors are contained 
within Division 01, Agriculture, Hunting and Related Service Activities 
of the current International Standard Industrial Classification of all 
Economic Activities (ISIC, Revision 3) of the United Nations. Data 
tabulated using NAICS can be retabulated according to ISIC with one 
exception: Tree Nut and Noncitrus Fruit Farming cannot be assigned to 
an ISIC division without being sub-divided since integrated grape 
growing and wine manufacturing are classified in ISIC as an 
agricultural activity and in NAICS as a manufacturing activity.

Some Changes to the National Classifications

    For Canada, Mexico, and the United States, an industry group is 
created for root, tuber, and peanut farming. The grouping includes 
industry activities for potatoes, sugar beets, peanuts, and other root-
type crops, except vegetables. Canada previously classified these 
establishments in field crops and the U.S. in field crops, except cash 
grains. In Mexico, the industries were classified in CMAP 111102 or 
111103 as short-cycle crops.
    Support Activities for Agriculture and Forestry is redefined for 
Canada, 

[[Page 4527]]
Mexico, and the United States. This subsector contains the following 
industry groups: Support Activities for Crop Production, Support 
Activities for Animal Production, and Support Activities for Forestry. 
The CSIC Major Group 02, Service Industries Incidental to Agriculture, 
is included in the NAICS Support Activities subsector with some 
exceptions, namely veterinary services, companion animal services 
except breeding, certain research activities, and selected activities 
related to ornamental plants. For Mexico, the activities included in 
this subsector are moved from CMAP 971010. For the United States, 
support activities include 1987 SIC Industry Group 085, Forestry 
Services, and 1987 SIC Major Group 07, Agricultural Services, with the 
exception of veterinary services, landscape and horticultural services, 
animal specialty services, except breeding and equine support 
activities.
    For the United States, cotton ginning has been moved to 
Miscellaneous Manufacturing as a separate 4-digit NAICS industry. 
Cotton ginning is the mechanical process of removing the seed from the 
cotton lint. The activity generally takes place ``off the farm'' at a 
cotton gin.
    For Canada and the U.S., the new industry group Grain and Oilseed 
Farming constitutes a change in the crop production structure. It 
essentially replaces the CSIC industry group Field Crop Farms and the 
1987 SIC Industry Group 011, Cash Grains.
    Orange Groves are a separate crop farming industry for Mexico and 
the United States. Historically, Mexico and the U.S. classified these 
establishments in Growing of Fruit Trees and Citrus Fruits, 
respectively.
    Canadian Poultry and Egg Farms and Mexican Poultry Farms are 
disaggregated into Chicken Egg Production, Broiler and Other Meat-type 
Chicken Production, and Turkey Production. These NAICS industries plus 
Poultry Hatcheries and Other Poultry Production form the industry group 
Poultry Production. The new industries reflect the structure and 
current production practices within each country.
    Animal Aquaculture is a new industry for both Canada and Mexico. 
The Canadian industry, Services Incidental to Fishing, has been deleted 
since the other activities within the industry were either identified 
as non-existent or were more appropriately classified elsewhere. In 
Mexico, aquaculture has been moved from the fishing subsector 13 to 
Animal Production to be consistent with the production oriented 
principle. In the U.S., Fish Hatcheries and Preserves classified in 
1987 SIC 0921 and fish propagation in captivity are included in this 
industry group.
    For Mexico, the CMAP class 111212 for hunting is moved to the NAICS 
subsector Fishing, Hunting, and Trapping.
    For the U.S., a new industry will exist for apiculture.
    The subsector Forestry and Logging includes logging, formerly in 
the U.S. Manufacturing 1987 SIC 2411. As a production activity, the 
harvesting of standing timber or logging is more similar to the 
harvesting of agricultural crops than the processing of harvested wood 
products, the primary activity of the 1987 SIC Major Group 24, Lumber 
and Wood Products, except Furniture. The production activity for the 
forestry industry is narrowly defined to be long-term timber growth. 
Short rotation timber growth and its harvesting is placed in the NAICS 
industry for Nursery and Floriculture Production.

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, (4-digit) 
level of the structure. All countries agree on the definitions of the 
industries.
    Other objectives of the NAICS project such as the inclusion of new 
and emerging industries, service industries, and advanced technology 
producing industries were not as relevant in this area of the 
classification as in others. This is due to the relatively well 
established and technological stable nature of the agricultural and 
related subsectors.
    The industries have high specialization ratios, and with the 
exception of citrus and cotton farming in Canada and dual purpose 
cattle farming in Canada and the United States, they are economically 
significant. Smaller industries are present because comparability is 
given priority over size. Finally, disruptions to time series have been 
kept to a minimum. Most of the changes to existing classifications are 
marginal. The major changes have been identified and can be taken into 
account in linking time series.

Section B-Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the 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 five 
NAICS industry subsectors covered in Part I of this notice. For cases 
where no 5-digit detail is shown, the ECPC is proposing that the NAICS 
4-digit industries will also represent the most detailed U.S. 
industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                         1997 NAICS and U.S.                         1987 SIC                                   
                             description             Status code       code           1987 SIC description      
----------------------------------------------------------------------------------------------------------------
XX................  Crop Production;                                                                            
XXX...............    Grain and Oilseed Farming:                                                                
XXXX..............     Wheat Farming............  E                      0111  Wheat General Farms, Primarily   
                                                                                Crop (Wheat Farming).           
XXXX..............     Corn Farming.............  R                      0115  Corn.                            
                                                  ................      *0119  Cash Grain, NEC (Popcorn         
                                                                                Farming).                       
XXXX..............     Rice Farming.............  E                      0112  Rice.                            
XXXX..............     Other Grain Farming......  R                     *0119  Cash Grains, NEC (Except Popcorn,
                                                                                Barley, Soybean, and Dry Pea and
                                                                                Bean).                          

[[Page 4528]]
                                                                                                                
XXXX..............     Soybean Farming..........  E                      0116  Soybeans.                        
XXXX..............     Oilseed Farming, Except    N                     *0119  Cash Grains, NEC (Oilseed, Except
                        Soybean Farming.                                        Soybean).                       
XXXX..............     Dry Pea and Bean Farming.  N                     *0119  Cash grains, NEC (Dry Pea and    
                                                                                Bean).                          
XXX...............    Root, Tuber, and Peanut     ................  .........  .................................
                       Farming                                                                                  
XXXX..............     Potato Farming...........  E                      0134  Irish Potatoes.                  
XXXX..............     Peanut and Other Root and  ................  .........  .................................
                        Tuber Farming                                                                           
XXXXX.............      Sugarbeet Farming.......  N                     *0133  Sugar Cane and Sugar Beets       
                                                                                (Sugarbeet Farming).            
XXXXX.............      Peanut Farming..........  N                     *0139  Field crops, Except Cash Grains, 
                                                                                NEC (Peanut Farming).           
XXXXX.............      Other Root and Tuber      N                     *0139  Field Crops, Except Cash Grains, 
                         Farming.                                               NEC (Root and Tuber, Except     
                                                                                Potato and Sugarbeet).          
XXX...............    Vegetable and Melon                                                                       
                       Farming:                                                                                 
XXXX..............     Vegetable and Melon        E                      0161  Vegetables and Melons.           
                        Farming                                                                                 
XXX...............    Tree Nut and Fruit Farming  ................  .........  .................................
XXXX..............     Orange Groves............  N                     *0174  Citrus Fruits (Orange Groves).   
XXXX..............     Other Citrus Groves......  R                     *0174  Citrus Fruits (Except, Orange    
                                                                                Groves).                        
XXXX..............     Tree Nut and Noncitrus     ................  .........  .................................
                        Fruit Farming                                                                           
XXXXX.............      Apple Orchards..........  N                     *0175  Deciduous Tree Fruits (Apple).   
XXXXX.............      Grape Vineyards.........  E                      0172  Grapes.                          
XXXXX.............      Strawberry Farming......  N                     *0171  Berry Crops (Strawberry).        
XXXXX.............      Other Berry Farming.....  R                     *0171  Berry Crops (Except Strawberry). 
XXXXX.............      Tree Nut Farming........  E                      0173  Tree Nuts.                       
XXXXX.............      Other Noncitrus Fruit     R                     *0175  Deciduous Fruits (Except Apple)  
                         Farming.                                              0179                             
                                                                               Fruit and Tree Nuts, NEC.        
XXX...............    Greenhouse, Nursery and                                                                   
                       Floriculture Production:                                                                 
XXXX..............     Food Crops Grown Under                                                                   
                        Cover:                                                                                  
XXXXX.............      Mushroom Production.....  N                     *0182  Food Crop Grown Under Cover      
                                                                                (Mushroom).                     
XXXXX.............      Other Food Crops Grown    R                     *0182  Food Crops Grown Under Cover     
                         Under Cover.                                           (Except Mushroom).              
XXXX..............     Nursery and Floriculture   ................  .........  .................................
                        Production                                                                              
XXXXX.............      Nursery and Tree          N                     *0181  Ornamental Nursery Products      
                         Production.                                    *0811   (Nursery Farming).              
                                                                               Timber Tracts (Short Rotation    
                                                                                Woody Crops).                   
XXXXX.............      Floriculture Production.  N                     *0181  Ornamental Nursery Products Farms
                                                                                (Floriculture Farming).         
XXX...............    Other Crop Farming          ................  .........  .................................
XXXX..............     Tobacco Farming..........  E                      0132  Tobacco.                         
XXXX..............     Cotton Farming...........  E                      0131  Cotton.                          
XXXX..............     Sugarcane Farming........  N                     *0133  Sugarcane and Sugar Beets        
                                                                                (Sugarcane).                    
XXXX..............     Hay Farming..............  N                     *0139  Field Crops, Except Cash Grains, 
                                                                                NEC (Hay, Farming).             
XXXX..............     All Other Crop Farming...  R                     *0139  Field Crops, Except Cash Grains, 
                                                                                NEC (Except Root, Tuber, Peanut,
                                                                                and Hay).                       
                                                  ................       0191  General Farms, Primary Crop.     
                                                  ................      *0831  Forest Products (Maple Sap).     
XX................  Animal Production:                                                                          
XXX...............    Cattle Ranching and                                                                       
                       Farming:                                                                                 
XXXX..............     Beef Cattle Ranching and                                                                 
                        Farming, Including:                                                                     
                       Feedlots                                                                                 
XXXXX.............      Beef Cattle Ranching and  E                      0212  Beef Cattle, Except Feedlots     
                         Farming.                                               (Cattle Farming).               
XXXXX.............      Cattle Feedlots           E                      0211  Beef Cattle Feedlots (Cattle     
                                                                                Farming).                       
XXXX..............     Dairy Cattle and Milk      E                      0241  Dairy Farms.                     
                        Production.                                                                             
XXXX..............     Dual Purpose Cattle        L                 .........  .................................
                        Ranching and Farming.                                                                   
XXX...............    Hog and Pig Farming         ................  .........  .................................
XXXX..............     Hog and Pig Farming        E                      0213  Hogs.                            
XXX...............    Poultry Production          ................  .........  .................................
XXXX..............    Chicken Egg Production      E                      0252  Chicken Eggs.                    
XXXX..............     Broilers and Other Meat    E                      0251  Broiler, Fryer, and Roaster      
                        Type Chicken Production.                                Chickens.                       
XXXX..............     Turkey Production........  E                      0253  Turkeys and Turkey Eggs.         
XXXX..............     Poultry Hatcheries and     ................  .........  .................................
                        Other Poultry Production                                                                
XXXXX.............      Poultry Hatcheries......  E                      0254  Poultry Hatcheries.              
XXXXX.............      Other Poultry Production  E                      0259  Poultry and Eggs, NEC.           
XXX...............    Sheep and Goat Farming      ................  .........  .................................
XXXX..............     Sheep Farming............  N                     *0214  Sheep and Goats (Sheep).         
XXXX..............     Goat Farming.............  N                     *0214  Sheep and Goats (Goat).          
XXX...............    Animal Aquaculture          ................  .........  .................................
XXXX..............     Animal Aquaculture         ................  .........  .................................
XXXXX.............      Finfish Production......  N                     *0273  Animal Aquaculture (Finfish).    
                    ............................  ................      *0921  Fish Hatcheries and Preserve     
                                                                                (Finfish Hatcheries).           
XXXXX.............      Shellfish Production....  N                     *0273  Animal Aquaculture (Shellfish).  
                                                  ................      *0921  Fish Hatcheries and Preserve     
                                                                                (Shellfish Hatcheries).         

[[Page 4529]]
                                                                                                                
XXXXX.............      Other Animal Aquaculture  R                     *0273  Animal Aquaculture (Except       
                                                                                Finfish and Shellfish).         
XXX...............    Other Animal Production     ................  .........  .................................
XXXX..............     Apiculture...............  N                     *0279  Animal Specialties, NEC          
                                                                                (Apiculture).                   
XXXX..............     Horse and Other Equine     E                      0272  Horse and Other Equine.          
                        Production.                                                                             
XXXX..............     Fur-Bearing Animal and     E                      0271  Fur-Bearing Animals and Rabbits. 
                        Rabbit Production.                                                                      
XXXX..............  All Other Animal Production.  R                      0219  General Livestock NEC.           
                                                  ................      *0279  Animal Specialties, NEC (Except  
                                                                                Apiculture).                    
                                                  ................       0291  General Farms, Primarily Animals.
XX................  Forestry and Logging:                                                                       
XXX...............    Timber Tract Operations:                                                                  
XXXX..............     Timber Tract Operations..  R                     *0811  Timber Tracts (Long Term Timber  
                                                                                Farming).                       
XXX...............    Forest Nurseries and        ................  .........  .................................
                       Gathering of Forest                                                                      
                       Products                                                                                 
XXXX..............     Forest Nurseries and       E                     *0831  Forest Products (Forest Products,
                        Gathering of Forest                                     Except Maple Sap).              
                        Products.                                                                               
XXX...............    Logging                     ................  .........  .................................
XXXX..............     Logging..................  E                      2411  Logging.                         
XX................  Fishing, Hunting, and                                                                       
                     Trapping:                                                                                  
XXX...............    Fishing:                                                                                  
XXXX..............     Fishing                    ................  .........  .................................
XXXXX.............      Finfish Fishing.........  E                      0912  Finfish.                         
XXXXX.............      Shellfish Fishing.......  E                      0913  Shellfish.                       
XXXXX.............      Other Marine Fishing....  E                      0919  Miscellaneous Marine Products.   
XXX...............    Hunting and Trapping        ................  .........  .................................
XXXX..............     Hunting and Trapping.....  E                      0971  Hunting and Trapping, and Game   
                                                                                Propagation.                    
XX................  Support Activities for        ................                                              
                     Agriculture and Forestry:                                                                  
XXX...............  Support Activities For Crop   ................                                              
                     Production:                                                                                
XXXX..............    Support Activities For      ................                                              
                       Crop Production                                                                          
XXXXX.............     Soil Preparation,          R                      0711  Soil Preparation Services.       
                        Planting, and                                    0721  Crop Planting, Cultivating, and  
                        Cultivating                                             Protecting.                     
XXXXX.............      Crop Harvesting,          E                      0722  Crop Harvesting, Primarily by    
                         Primarily by Machine.                                  Machine.                        
XXXXX.............      Postharvest Crop          E                      0723  Crop Preparation Services For    
                         Activities.                                            Market.                         
XXXXX.............  Farm Labor Contractors and    E                      0761  Farm Labor Contractors.          
                     Crew Leaders.                                                                              
XXX...............    Support Activities For      ................                                              
                       Animal Production:                                                                       
XXXX..............     Support Activities For     N                     *0751  Livestock Services, Except       
                        Animal Production                                       Veterinary.                     
                                                  ................      *0752  Animal Specialty Services, Except
                                                                                Veterinary.                     
                                                  ................      *7699  Repair Services, NEC (Farriers). 
XXX...............    Support Activities for      ................  .........  .................................
                       Forestry:                                                                                
XXXX..............     Support Activities for     E                      0851  Forestry Services.               
                        Forestry.                                                                               
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E-existing industry; L-null industry for the U.S.; N-new        
  industry R-revised industry; and * means ``part of''. The abbreviation NEC is used for Not Elsewhere          
  Classified.                                                                                                   



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
0111....................................  Wheat...........................  Wheat Farming.                      
0112....................................  Rice............................  Rice Farming.                       
0115....................................  Corn............................  Corn Farming.                       
0116....................................  Soybeans........................  Soybean Farming.                    
0119....................................  Cash Grains, NEC                                                      
                                            Dry Pea and Bean Farms........  Dry Pea and Bean Farming.           
                                            Oilseed, Except Soybean Farms.  Oilseed Farming, Except Soybean     
                                                                             Farming.                           
                                            Popcorn Farms.................  Corn Farming.                       
                                            Other Farms...................  All Other Grain Farming.            
0131....................................  Cotton..........................  Cotton farming.                     
0132....................................  Tobacco.........................  Tobacco Farming.                    
0133....................................  Sugarcane and Sugar Beets                                             
                                            Sugarbeet.....................  Sugarbeet Farming.                  
                                            Sugarcane.....................  Sugarcane Farming.                  
0134....................................  Irish Potatoes..................  Potato Farming.                     
0139....................................  Field Crops, Except Cash Grains,                                      
                                           NEC                                                                  
                                            Hay, Farms....................  Other Hay Farming.                  
                                            Peanut Farming................  Peanut Farming.                     
                                            Root and Tuber, Except Potato,  Other Root and Tuber Farming.       
                                             Farms.                                                             
                                            Other Field Crop Farms........  All Other Crop Farming.             
0161....................................  Vegetables and Melons...........  Vegetable and Melon Farming.        
0171....................................  Berry Crops                                                           
                                            Strawberry Farms..............  Strawberry Farming.                 
                                            Other Berry Farms.............  Other Berry Farming.                

[[Page 4530]]
                                                                                                                
0172....................................  Grapes..........................  Grape Vineyards.                    
0173....................................  Tree Nuts.......................  Tree Nut Farming.                   
0174@...................................  Citrus Fruits                                                         
                                            Orange Groves and Farms.......  Orange Groves.                      
                                            Other Citrus Groves and Farms.  Other Citrus Groves.                
0175....................................    Deciduous Tree Fruits.........                                      
                                            Apple Orchard and Farms.......  Apple Orchards.                     
                                            Other Farms...................  Other Noncitrus Fruit Farming (pt). 
0179@...................................  Fruits and Tree Nuts, NEC.......  Other Noncitrus Fruit Farming (pt). 
0181@...................................  Ornamental Nursery Products                                           
                                            Floriculture Farming..........  Floriculture Production.            
                                            Nursery Farming...............  Nursery and Tree Production (pt).   
0182....................................  Food Crops Grown Under Cover                                          
                                            Mushroom, Growing Of..........  Mushroom Production.                
                                            Other Food Crops Grown Under    Other Food Crops Grown Under Cover. 
                                             Cover.                                                             
0191@...................................  General Farms, Primarily Crop...  All Other Crop Farming (pt).        
0211....................................  Beef Cattle Feed Lots...........  Cattle Feedlots.                    
0212....................................  Beef Cattle, Except Feedlots....  Beef Cattle Ranching and Farming.   
0213....................................  Hogs............................  Hog and Pig Farming.                
0214....................................  Sheep and Goats                                                       
                                            Sheep Farms...................  Sheep Farming.                      
                                            Goat Farms....................  Goat Farming.                       
0219@...................................  General Livestock, NEC..........  All Other Animal Production (pt).   
0241....................................  Dairy Farms.....................  Dairy Cattle and Milk Production.   
0251....................................  Broiler, Fryers, and Roaster      Broilers and Other Meat-Type Chicken
                                           Chickens.                         Production.                        
0252....................................  Chicken Eggs....................  Chicken Egg Production.             
0253....................................  Turkey and Turkey Eggs..........  Turkey Production.                  
0254....................................  Poultry Hatcheries..............  Poultry Hatcheries.                 
0259....................................  Poultry and Eggs, NEC...........  Other Poultry Production.           
0271....................................  Fur-Bearing Animals and Rabbits.  Fur-Bearing Animal and Rabbit       
                                                                             Production.                        
0272....................................  Horses and Other Equines........  Horses and Other Equine Production. 
0273....................................  Animal Aquaculture                                                    
                                            Finfish Farming...............  Finfish Production.                 
                                            Shellfish Farming.............  Shellfish Production.               
                                            Other Animal Aquaculture......  Other Animal Aquaculture (pt).      
0279@...................................    Animal Specialities, NEC......                                      
                                            Apiculture....................  Apiculture.                         
                                            Other.........................  All Other Animal Production (pt).   
0291@...................................  General Farms, Primarily Animal.  All Other Animal Production (pt).   
0711....................................  Soil Preparation Services.......  Soil Preparation, Planting and      
                                                                             Cultivating (pt).                  
0721....................................  Crop Planting and Protecting....  Soil Preparation, Planting and      
                                                                             Cultivating (pt).                  
0722....................................  Crop Harvesting.................  Crop Harvesting, Primarily By       
                                                                             Machine.                           
0723....................................  Crop Preparation Services For     Postharvest Crop Activities.        
                                           Market.                                                              
0724....................................  Cotton Ginning..................  Cotton Ginning (Included in         
                                                                             Miscellaneous Manufacturing        
                                                                             subsector).                        
0741....................................  Veterinary Service For Livestock  Veterinary Services(pt) (Included in
                                                                             Services to be shown later).       
0742....................................  Veterinary Services, Specialties  Veterinary Service (pt) (Included in
                                                                             Services to be shown later).       
0751@...................................  Livestock Services, Except                                            
                                           Veterinary                                                           
                                            Custom Slaughtering...........  Animal Slaughtering and Processing  
                                                                             (pt) (Included in Food             
                                                                             Manufacturing subsector).          
                                            Other Livestock Service,        Support Activities For Animal       
                                             Except Veterinary.              Production (pt).                   
0752@...................................  Animal Specialty Service                                              
                                            Horses and Equines Services     Support Activities For Animal       
                                             and Animal Production           Production (pt).                   
                                             Breeding.                                                          
                                            Breeding                                                            
                                            Other Specialty Animal          Animal Specialty Services, Except   
                                             Services.                       Veterinary (pt) (Included in       
                                                                             Services to be shown later).       
0761....................................  Farm Labor Contractors..........  Farm Labor Contractors and Crew     
                                                                             Leaders.                           
0762@...................................  Farm Management Services                                              
                                            Animal Production Management    Support Activities For Animal       
                                             Services.                       Production (pt).                   
                                            Crop Production Management      Included with the particular crop   
                                             Services.                       production industries they serve.  
0781....................................  Landscape Counseling and          Included in Services and            
                                           Planning.                         Construction Industries to be shown
                                                                             later.                             
0782....................................  Lawn and Garden Services........  Included in Services and            
                                                                             Construction Industries to be shown
                                                                             later.                             
0783....................................  Ornamental Shrub and Tree         Included in Services and            
                                           Services.                         Construction Industries to be shown
                                                                             later.                             
0811@...................................  Timber Tracts                                                         
                                            Short Rotation Woody Crops....  Nursery and Tree Production (pt).   

[[Page 4531]]
                                                                                                                
                                            Long Term Crops...............  Timber Tract Operations.            
0831@...................................  Forest Products                                                       
                                            Maple Sap.....................  All Other Crop Production (pt).     
                                            Other Forest Products.........  Forest Nurseries and Gathering of   
                                                                             Forest Products.                   
0851....................................  Forestry Services...............  Support Activities For Forestry.    
0912....................................  Finfish.........................  Finfish Production.                 
0913....................................  Shellfish.......................  Shellfish Production.               
0919....................................  Miscellaneous Marine Products...  Other Animal Aquaculture.           
0921@...................................  Fish Hatcheries and Preserves                                         
                                            Finfish Hatcheries............  Finfish Production (pt).            
                                            Shellfish Hatcheries..........  Shellfish Production (pt).          
                                            Fish Preserves................  Nature Parks and Similar            
                                                                             Institutions (pt) (Included in     
                                                                             Museums, Historical Sites and      
                                                                             Similar Institutions subsector to  
                                                                             be shown later).                   
0971....................................  Hunting, Trapping, Game           Hunting and Trapping.               
                                           Propagation.                                                         
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of''. @ means time series break has been created that is greater than 3% of
  the 1992 revenues for the 1987 SIC industry.                                                                  



Description of Changes to the U. S. System

    A number of the changes listed in this section were made for 
reasons of international comparability. Where one or more of the three 
North American countries had different definitions of an industry 
classification, adjustments to the definitions in one or more countries 
were required. In constructing NAICS, the three countries agreed to 
move, where change was required to attain international comparability, 
in the direction of the country or countries whose existing 
classification definitions most closely corresponded to the production-
oriented concept adopted for NAICS. Cases where the U.S. changed are 
listed below; other cases where Canada or Mexico moved toward the U.S. 
classification are not, of course, listed in this section.
    Crop Production--There were 13 new industries added to the 1997 
industry structure in this industry subsector. New industries were 
created for:
    Oilseed Farming, Except Soybean Farming and Dry Pea and Bean 
Farming from part of 1987 SIC 0119, Cash Grains, NEC, in response to a 
proposal and to achieve international comparability.
    Sugarbeet Farming and Sugarcane Farming from 1987 SIC 0133, Sugar 
Cane and Sugar Beets, to recognize significant industries with unique 
production processes and to achieve international comparability.
    Peanut Farming, Other Root and Tuber Farming, and Hay Farming from 
part of 1987 SIC 0139, Field Crops, Except Cash Grains, NEC, to 
recognize industries with unique production processes and to achieve 
international comparability.
    Orange Groves from part of 1987 SIC 0174, Citrus Fruits, to 
recognize an existing large industry with a unique production process.
    Apple Orchards from part of 1987 SIC 0175, Deciduous Tree Fruits, 
to recognize an existing large industry with a unique production 
process.
    Strawberry Farming from part of 1987 SIC 0171, Berry Crops, to 
recognize an existing large berry industry.
    Mushroom Production from part of 1987 SIC 0182, Food Crop Grown 
Under Cover, in response to a data user's proposal and to achieve 
international comparability.
    Nursery and Tree Production from part of 1987 SIC 0181, Ornamental 
Nursery Product, and part of 1987 SIC 0811, Timber Tract Operations, to 
achieve international comparability.
    Floriculture Production from part of 1987 SIC 0181, Ornamental 
Nursery Products, to recognize an existing large industry with a unique 
production process.
    Two activities were transferred into the 1997 Crop Production 
subsector.
    Short rotation woody crops (e.g., Christmas trees) farming was 
transferred from part of 1987 SIC 0811, Timber Tracts, into Nursery and 
Tree Production, in response to a proposal and because of similar 
production processes. Christmas trees and other woody products life 
cycle is typically less than ten years in contrast to trees growing in 
forests with a much longer growth cycle.
    Maple sap gathering was transferred from part of 1987 SIC 0831, 
Forest Products, into All Other Crop Production in response to an 
industry proposal. The production of maple syrup at the site where 
maple sap is gathered is included in All Other Crop Production while 
the production of maple syrup at a separate location is in the 
Manufacturing sector of NAICS.
    Also, there were several activities that transferred within the 
crop production industry group. The number of crop production 
industries increased from 20 in 1987 to 29 in 1997. For time series 
linkage, 16 of the 20 1987 industries are comparable within three 
percent of the 1997 industries.
    Animal Production--There were five new industries added to the 1997 
industry structure for this industry subsector. New industries were 
created for:
    Sheep Farming and Goat Farming from 1987 SIC 0214, Sheep and Goats, 
to achieve international comparability with Mexico.
    Finfish Production and Shellfish Production from part of 1987 SIC 
0273, Animal Aquaculture, to recognize emerging industries with unique 
production processes.
    Apiculture from part of 1987 SIC 0279, Animal Specialties, NEC, to 
achieve international comparability.
    Dual Purpose Cattle Ranching and Farming will be a null industry 
for the United States.
    One activity transferred into the 1997 Animal Production industry 
subsector.
    Fish Hatcheries were transferred from 1987 SIC 0921, Fish 
Hatcheries and Preserves, into Animal Aquaculture, to reflect a 
production process for fish propagated in captivity.
    A few activities were transferred within the animal production 
industry group. The number of animal production industries increased 
from 16 in 1987 to 19 in 1997. For time series linkage, 13 of the 16 
1987 industries are comparable within three percent of the 1997 
industries.
    Forestry and Logging--Three activities were transferred out of the 
1987 Major Group 08, Forestry.
    Short rotation woody crops (e.g., Christmas trees) were transferred 
from 

[[Page 4532]]
part of 1987 SIC 0811, Timber Tracts, into Nursery and Tree Production 
to reflect similar production processes based on the length of the 
commodities growth cycle.
    Maple sap gathering was transferred from part of 1987 SIC 0831, 
Forest Products, into part of All Other Crop Production in response to 
an industry proposal.
    1987 SIC 0851, Forestry Services, was transferred into the 1997 
Support Activities for Crop and Animal Production and Forestry 
subsector, to reflect similar production support processes.
    One activity was transferred into 1997 Forestry and Logging 
Industry subsector.
    1987 SIC 2411, Logging, was transferred into this subsector because 
the production process is more clearly aligned to forestry and for 
international comparability.
    The number of 1997 forestry and logging industries remained 
unchanged at three from 1987. For time series linkage, only one of the 
three 1987 industries are comparable within three percent of the 1997 
industries.
    Fishing, Hunting, and Trapping--Two activities were transferred out 
of the 1987 Major Group 09, Fishing, Hunting, and Trapping.
    Fish hatcheries were transferred from part of 1987 SIC 0921, Fish 
Hatcheries and Preserves, into Finfish Hatcheries and Shellfish 
Hatcheries, to reflect production processes for fish propagated in 
captivity.
    Fish preserves were transferred from part of 1987 SIC 0921, Fish 
Hatcheries and Preserves, into 1997 NAICS Museums, Historical Sites and 
Similar Institutions subsector, to reflect similar production 
processes.
    Also, there were several activities that transferred within the 
fishing, hunting and trapping industries. The number of fishing, 
hunting, and trapping industries decreased from five in 1987 to four in 
1997. For time series linkage, four of the 1987 industries are 
comparable within three percent of the 1997 industries.
    Support Activities for Agriculture and Forestry--There was one new 
industry added to the industry structure for this subsector. An 
industry was created for:
    Support Activities for Animal Production from part of 1987 SIC 
0751, Livestock Services, Except Veterinary; 0752, Animal Specialty 
Services, Except Veterinary; and 7699, Repair Services, NEC, to reflect 
similar production processes.
    Eight activities were transferred out of 1987 SIC Major Group 07, 
Agriculture Services.
    Cotton Ginning was transferred into the NAICS Miscellaneous 
Manufacturing subsector, to achieve international comparability with 
Mexico.
    Veterinary Services for Livestock, 1987 SIC 0741, and Veterinary 
Services for Animal Specialties, 1987 SIC 0742, will be combined and 
transferred into one of the 1997 services industry subsectors, to 
achieve international comparability. Also, the services require very 
specialized input and highly skilled workers not found in other support 
activities for animal production.
    Custom slaughtering was transferred from part of 1987 SIC 0751, 
Livestock Services, Except Veterinary, into the 1997 manufacturing 
industry subsector Food Product Manufacturing, to reflect a similar 
production process.
    Animal Specialty Services, Except Veterinary were transferred from 
part of 1987 SIC 0752, Animal Specialty Services, Except Veterinary, 
into one of the new service industry subsectors, to reflect unique 
production processes. Services for horses and equines and activities 
related to breeding of animals will be in Support Activities for Animal 
Production.
    Farm Management Services, 1987 SIC 0762, will be integrated with 
the particular crop production industries they serve. For example, 
``citrus grove management and maintenance'' will be classified with 
Orange Groves or Other Citrus Groves, depending on the crop managed. If 
there is not a dominant cropping activity, crop farm management 
services will be placed with the 4-digit NAICS industry, All Other Crop 
Farming. Activities are grouped together that have similar production 
processes.
    Landscape architects and landscape planning was transferred from 
part of 1987 SIC 0781, Landscape Counseling and Planning, into 1997 
NAICS subsector, Professional, Technical, and Scientific Services, to 
reflect similar production processes involving similar inputs and 
particularly skills in architecture and planning.
    Garden planning horticulture advisory and counseling services were 
transferred from part of 1987 SIC 0781, Landscape Counseling and 
Planning, into one of the 1997 services industries, to achieve 
international comparability and separate out non-crop production 
activities.
    Lawn and garden care services, excluding installation and initial 
planting activities were transferred from part of 1987 SIC 0782, Lawn 
and Garden Services, and 1987 SIC 0783, Ornamental Shrub and Tree 
Service, was transferred partly into one of the new 1997 services 
industries. Lawn and garden installation and initial planting of 
materials were transferred into the Construction Industries sector, to 
reflect similar production processes. Also, this achieves international 
comparability with Canada that now divides these industries between 
construction and services.
    Two activities were transferred into the NAICS Support Activities 
for Agriculture and Forestry subsector.
    1987 SIC 0851, Forestry Services, were transferred into the 
industry group, Support Activities for Forestry, to reflect similar 
production processes, i.e., support activities for agriculture and 
forestry.
    Farriers (Blacksmith Shops) were transferred from part of 1987 SIC 
7699, Repair Services, NEC, into the industry group, Support Activities 
for Animal Production, to achieve international comparability. This 
activity provides direct support to the animal production subsector.
    Also, there were several activities that transferred within the 
support activities for crop and animal production and forestry 
industries. The number of support activities for crop and animal 
production and forestry industry decreased from 14 in 1987 to 6 in 
1997. For time series linkage, 11 of the 14 1987 industries are 
comparable within three percent of the 1997 industries.

Part II--Proposed New Industry Structure for Textile Mills, Textile 
Product Mills, Apparel Manufacturing, Leather and Allied Product 
Manufacturing

Section A--NAICS Structure

North American Industry Classification System (NAICS)
Agreement Number 5
    This Document represents the proposed agreement on the structure of 
the North American Industry Classification System (NAICS) for the 
following industries:

Textile Mills
Textile Product Mills
Apparel Manufacturing
Leather and Allied Product Manufacturing

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. For the apparel industries only, each country may develop a 
different national structure. These structures must, however, permit 
each country to aggregate to the NAICS structure in Attachment 1. Each 

[[Page 4533]]
country's detailed apparel structure is shown in Attachment 3. Comments 
received will be shared among the countries and discussions held before 
a final decision on the structure is made. This NAICS structure was 
presented and provisionally accepted at the NAICS Committee meeting 
held June 22 and 23, 1995 in Ottawa, Canada.

------------------------------------------------------------------------
            Accepted                        Signature             Date  
------------------------------------------------------------------------
Canada..........................  /S/ Jacob Ryten.............   6/23/95
Mexico..........................  /S/ Enrique Ordaz...........   6/23/95
United States...................  /S/ Jack E. Triplett........   6/23/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Textile Mills
XXX  Fiber, Yarn and Thread Mills
XXXX  Fiber, Yarn and Thread Mills
XXX  Fabric Mills
XXXX  Broadwoven Fabric Mills
XXXX  Narrow Fabric Mills and Schiffli Machine Embroidery
XXXX  Nonwoven Fabric Mills
XXXX  Knit Fabric Mills
XXX  Textile and Fabric Finishing and Fabric Coating Mills
XXXX  Textile and Fabric Finishing Mills
XXXX  Fabric Coating Mills
XX  Textile Product Mills
XXX  Textile Furnishings Mills
XXXX  Carpet and Rug Mills
XXXX  Curtain and Linens Mills
XXX  Miscellaneous Textile Product Mills
XXXX  Textile Bags and Canvas Mills
XXXX  Other Miscellaneous Textile Product Mills
XX  Apparel Manufacturing
XXX  Cut and Sew Apparel Manufacturing
XXXX  Outerwear Manufacturers and Jobbers
XXXX  Underwear and Nightwear Manufacturers and Jobbers
XXXX  Cut and Sew Apparel Contractors
XXX  Apparel Knitting Mills
XXXX  Hosiery and Socks Mills
XXXX  Other Apparel Knitting Mills
XXX  Apparel Accessories and Other Apparel Manufacturing
XXXX  Apparel Accessories and Other Apparel Manufacturing
XX  Leather And Allied Product Manufacturing
XXX  Leather and Hide Tanning and Finishing
XXXX  Leather and Hide Tanning and Finishing
XXX  Footwear Manufacturing
XXXX  Footwear Manufacturing
XXX  Miscellaneous Leather and Allied Product Manufacturing
XXXX  Miscellaneous Leather and Allied Product Manufacturing

Attachment 2--North American Industry Classification System

    Draft Classification for:

Textile Mills
Textile Product Mills
Apparel Manufacturing
Leather and Allied Product Manufacturing

    Representatives of the statistical agencies of Canada, Mexico and 
the United States agree to a draft industry classification for these 
industries.
    The draft classification provides for four subsectors; Textile 
Mills; Textile Product Mills; Apparel Manufacturing; and Leather and 
Allied Product Manufacturing. These groups are further sub-divided into 
eleven industry groups and twenty industries. The subsectors will be 
part of the Manufacturing sector of the NAICS classification.

A General Outline

    Textile Mills comprise a group of industries that transform a basic 
fiber (natural or synthetic) into a product that is further 
manufactured into usable items such as apparel, sheets and towels, and 
textile bags for individual or industrial consumption. The main 
processes in this subsector include preparation and spinning of fiber, 
knitting or weaving of fabric, and finally the finishing of the 
textile. The NAICS structure follows and captures this process flow. 
Major industries in this flow such as preparation of fibers, weaving of 
fabric, knitting of fabric, and fiber and fabric finishing are uniquely 
identified. Texturizing, throwing, twisting, and winding of yarn 
contains aspects of both fiber preparation and fiber finishing. In the 
end, the decision was to class these with preparation of fibers rather 
than with finishing of fiber.
    The subsector Textile Product Mills includes the production of 
textile products, except apparel. With a few exceptions, processes used 
in these industries are generally ``cut and sew,'' i.e., purchasing 
fabric and cutting and sewing to make a non-apparel textile product 
such as sheets and towels. By creating a separate subsector, the 
classification more accurately reflects both the production aspect and 
the strong desire for a separate identification for these activities by 
many data users.
    The Apparel Manufacturing subsector consists of establishments with 
two distinct manufacturing processes: (1) ``cut and sew'' as described 
above and (2) the manufacture of garments in establishments that first 
knit fabric and then cut and sew the fabric into a garment. Knitting, 
when done alone, is classified in the Textile Mills subsector, but when 
knitting is combined with the production of complete garments, the 
production processes are similar to those in Apparel Manufacturing. The 
three countries agreed to establish separate subsectors for Textile 
Product Mills and Apparel Manufacturing. These groupings allow for the 
unique identification at a high classification level for Apparel 
Manufacturing, an extremely important international trade grouping.
    The subsector Leather and Allied Product Manufacturing consists of 
transforming hides into leather by tanning or curing, and fabricating 
the leather into products for final consumption. It also includes the 
manufacture of certain other, similar products from other materials, 
including products other than apparel made from ``leather 
substitutes'', such as rubber, plastic, or textiles. Rubber footwear, 
textile luggage, and plastic purses or wallets are examples of 
``leather substitute'' products included in this group. The products 
made from leather substitutes are produced in similar ways as are the 
leather products (luggage, for example) and they are made in the same 
establishments so it is not practical to separate them. The inclusion 
of leather production in this subsector is partly because leather 
tanning is a relatively small industry that has few close neighbors as 
a production process, partly because leather is an input to some of the 
other products classified in this subsector, and partly for historical 
reasons.

Limitations and Constraints of the Classification

    There are some analytical needs that cannot be met by this industry 
classification. For example, there is a need in the U.S. and Canada for 
data for separate statistics for men's and women's apparel, even though 
overlap of production exists for many specific clothing items. This 
cannot be accommodated by NAICS because of differences in the way 
apparel production is organized in Canada, Mexico, and the U.S. 
Specifically, in Mexico, producers of children's wear are not 
specialized according to gender as they are in the U.S. and Canada. It 
is therefore, not possible for Mexico to create separate industries for 
men's and boys' versus women's and girls''. Canada and the U.S., on the 
other hand, can recognize this distinction and in the national detail 
of the two countries, these groupings are recognized. Moreover, Mexico 
requires that uniforms be grouped together in a single industry; in the 
U.S. and Canada, production of men's uniforms is usually separate from 
production of women's uniforms. Additionally, size constraints prohibit 
separation of some activities in Canada. For example, Canada cannot 
support a separate men's work clothing industry.
    These differences in the way apparel production is organized in the 
three countries also greatly limits the number 

[[Page 4534]]
of NAICS industries that can be defined in this subsector. As a result, 
NAICS industries have been defined at a rather highly aggregated level 
(e.g., outerwear) because only at these levels of aggregation will it 
be possible to publish comparable data across all three countries. 
Therefore, the three countries agreed that each country will publish 
more detailed national industries that meet their respective national 
needs for data on apparel. For the apparel industries only, each 
country may develop a different national structure. These structures 
must, however, permit each country to aggregate to the NAICS structure 
shown in Attachment 1. Attachment 3 shows each country's detailed 
national structure for apparel.
    For users requiring detailed commodity information, each country 
will publish information on products of these industries. Efforts also 
are underway to harmonize the commodity classifications to allow 
comparability of these statistics.
    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 apparel 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 because of confidentiality rules. 
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. For example, Canada cannot support 
a separate men's work clothing industry because of size. It was 
preferable to adopt an operating rule for this industry subsector that 
the NAICS industries 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 nationally significant.

Relationship to ISIC

    The new NAICS structure for textiles, apparel, and leather does not 
match the current International Standard Industrial Classification of 
all Economic Activities (ISIC, Revision 3). The ISIC divisions covered 
by these NAICS subsectors are: Division 17, Manufacture of Textiles; 
Division 18, Manufacture of Wearing Apparel: Dressing and Dyeing of 
Fur; and Division 19, Tanning and Dressing of Leather; Manufacture of 
Luggage, Handbags, Saddlery, Harness and Footwear. Within ISIC, apparel 
made from fabric made in the same establishment is classified in one 
division and that made from fabric made by another establishment is 
classified in a different division. Within ISIC, both manufacturing of 
primary textiles and made-up textile products are classified in the 
same division while in NAICS these functions have been separated into 
two subsectors.
    However, of the twenty one NAICS 4-digit industries in these 
subsectors, only four do not fall within a single ISIC Division. The 
four that do not, cross two ISIC divisions. Moreover, the majority of 
the NAICS industries created fall within a single 4-digit ISIC 
industry.

Some Changes to the National Classifications

    This section highlights some of the significant changes to existing 
national classifications.
    In Textile Mills, the NAICS structure following the production flow 
resulted in a major restructuring for Canada. Every new national 
industry in Canada will have some change. For the United States, the 
main industry change involves moving finishing of fiber, yarn, thread, 
and wool fabric into separate classifications. The United States 
converters of non knit (woven) fabric also were moved to manufacturing. 
In Mexico, the changes were minor.
    The subsector Textile Product Mills contains no major changes for 
any of the three countries. In NAICS, all three countries moved 
curtains and draperies made from purchased materials to this grouping.
    The major change for Mexico and the U. S. for all NAICS industries 
in Apparel Manufacturing was the classification of cut and sew 
contracting into a separate NAICS industry group. The fact that cut and 
sew apparel contractors make women's dresses one week and women's 
blouses the next or make men's shirts one week and men's pants the next 
results in difficulties in classifying establishments. In addition, 
these contractors are typically small, thus causing additional 
difficulties in classifying these establishments. Classifying all 
contractors together eases the data collection process. Creating a 
separate contracting industry for apparel results in a change in 
virtually every U.S. (13) and Mexican (6) apparel manufacturing 
industry. Canada already recognizes apparel contracting in its current 
structure. It should be noted that Mexico will continue to collect and 
publish a combined industry (including contractors) for the cut and sew 
area, but will publish separate NAICS for this industry. The U.S. 
Census Bureau has published information in the past on cut and sew 
contractors. This information will be used as a bridge to link the 1997 
Economic Census data based on NAICS to data that would have been 
published on the 1987 SIC basis. This link will provide data users 
essential information for time series comparability.

Achievement of Objectives

    The classification meets the objectives for the NAICS. It is 
comprised of industries that group establishments with similar 
production processes, that is, it applies the production-oriented 
economic concept. In the main, the hierarchical structure of the 
classification also follows the production concept.
    The classification achieves comparability for the three 
participating countries. 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.
    Other objectives of the NAICS project are not as relevant in this 
area of the classification as in others. These objectives are the 
delineation of new and emerging industries, service industries, and 
industries engaged in the production of advanced technologies. The 
industry subsector in question is relatively mature, generally produces 
goods, and has employed relatively stable technology. Therefore, the 
emphasis was on the objectives listed above.
    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. For Textile Mills and Textile Product Mills, disruptions to 
time series have been kept to a minimum. In Apparel Manufacturing, 
however, the establishment of a separate industry for cut and sew 
contractors results in a change for the U.S. to nearly all of the 
existing apparel industries. A link between the old and new industries 
will be provided where possible.

Attachment 3--Individual Country Structure for Apparel 
Manufacturing-- NAICS Description

Canada

XX  Apparel Manufacturing
XXX  Men's and Boys' Cut and Sew Apparel Manufacturers and Jobbers 

[[Page 4535]]

XXXX  Men's and Boys' Cut and Sew Shirt, including Work Shirt 
Manufacturers and Jobbers
XXXX  Men's and Boys' Cut and Sew Trouser, Slack and Jean, including 
Work Clothing Manufacturers and Jobbers
XXXX  Men's and Boys' Cut and Sew Suit, Coat, and Overcoat 
Manufacturers and Jobbers
XXXX  Men's and Boys' Cut and Sew Other Outerwear Manufacturers and 
Jobbers
XXXX  Men's and Boys' Cut and Sew Underwear and Nightwear 
Manufacturers and Jobbers
XXX  Women's and Girls' Cut and Sew Apparel Manufacturers and 
Jobbers
XXXX  Women's and Girls' Cut and Sew Blouse and Shirt Manufacturers 
and Jobbers
XXXX  Women's and Girls' Cut and Sew Dress Manufacturers and Jobbers
XXXX  Women's and Girls' Cut and Sew Suit, Coat, Tailored Jacket and 
Skirt Manufacturers and Jobbers
XXXX  Women's and Girls' Cut and Sew Other Outerwear Manufacturers 
and Jobbers
XXXX  Women's and Girls' Cut and Sew Lingerie, Loungewear and 
Nightwear Manufacturers and Jobbers
XXX  Other Cut and Sew Apparel Manufacturers and Jobbers
XXXX  Infants' Cut and Sew Apparel Manufacturers and Jobbers
XXXX  Fur and Leather Apparel Manufacturers and Jobbers
XXXX  All Other Cut and Sew Apparel Manufacturers and Jobbers
XXX  Cut and Sew Apparel Contractors
XXX  Apparel Knitting Mills
XXXX  Hosiery and Socks Mills
XXXX  Other Apparel Knitting Mills
XXX  Apparel Accessories and Other Apparel Manufacturing
XXXX  Apparel Accessories and Other Apparel Manufacturing

Mexico

XX  Apparel Manufacturing
XXXXXX  Making up of mass-produced men's outerwear
XXXXXX  Making up of made-to-measure men's outerwear
XXXXXX  Making up of mass-produced women's outerwear
XXXXXX  Making up of women's made-to-measure outerwear
XXXXXX  Making up of shirts
XXXXXX  Making up of uniforms
XXXXXX  Making up of men's wear from leather, hides and synthetics
XXXXXX  Making up of women's wear from leather, hides and synthetics
XXXXXX  Making up of children's outerwear
XXXXXX  Making up of other outerwear
XXXXXX  Making up of foundation garments
XXXXXX  Making up of other innerwear
XXXXXX  Manufacture of hats, caps, etc.
XXXXXX  Manufacture of hats, caps, etc., from palm and other hard 
fibers
XXXXXX  Manufacture of gloves, ties, scarves, etc.

United States

XX  Apparel Manufacturing
XXX  Men's and Boys' Cut and Sew Apparel Manufacturers and Jobbers
XXXX  Men's and Boys' Cut and Sew Shirt, except Work Shirt 
Manufacturers and Jobbers
XXXX  Men's and Boys' Cut and Sew Trouser, Slack, and Jean 
Manufacturers and Jobbers
XXXX  Men's and Boys' Cut and Sew Work Clothing Manufacturers and 
Jobbers
XXXX  Men's and Boys' Cut and Sew Suit, Coat, and Overcoat 
Manufacturers and Jobbers
XXXX  Men's and Boys' Cut and Sew Other Outerwear Manufacturers and 
Jobbers
XXXX  Men's and Boys' Cut and Sew Underwear and Nightwear 
Manufacturers and Jobbers
XXX  Women's and Girls' Cut and Sew Apparel Manufacturers and 
Jobbers
XXXX  Women's and Girls' Cut and Sew Blouse and Shirt Manufacturers 
and Jobbers
XXXX  Women's and Girls' Cut and Sew Dress Manufacturers and Jobbers
XXXX  Women's and Girls' Cut and Sew Suit, Coat, Tailored Jacket and 
Skirt Manufacturers and Jobbers
XXXX  Women's and Girls' Cut and Sew Other Outerwear Manufacturers 
and Jobbers
XXXX  Women's and Girls' Cut and Sew Lingerie, Loungewear, and 
Nightwear Manufacturers and Jobbers
XXX  Other Cut and Sew Apparel Manufacturers and Jobbers
XXXX  Infants' Cut and Sew Apparel Manufacturers and Jobbers
XXXX  Fur and Leather Apparel Manufacturers and Jobbers
XXXX  All Other Cut and Sew Apparel Manufacturers and Jobbers
XXX  Cut and Sew Apparel Contractors
XXXX  Men's and Boys' Apparel Contractors
XXXX  Women's and Girls' Apparel Contractors
XXX  Apparel Knitting Mills
XXXX  Hosiery and Socks Mills
XXXXX  Sheer Hosiery Mills
XXXXX  Other Hosiery and Socks Mills
XXXX  Other Apparel Knitting Mills
XXXXX  Outerwear Knitting Mills
XXXXX  Underwear and Nightwear Knitting Mills
XXX  Apparel Accessories and Other Apparel Manufacturing
XXXX  Hat, Cap, and Millinery Manufacturing
XXXX  Glove and Mitten Manufacturing
XXXX  Men's and Boys' Neckwear Manufacturing
XXXX  Apparel Belt, Apparel Accessories, and Other Apparel 
Manufacturing

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. For cases 
where no 5-digit detail is shown, the ECPC is proposing that the NAICS 
4-digit industries will also represent the most detailed U.S. 
industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Textile Mills:                 ................                                            
XXX................    Fiber, Yarn and Thread       ................                                            
                        Mills:                                                                                  
XXXX...............     Fiber, Yarn and Thread      ................                                            
                         Mills:                                                                                 
XXXXX..............      Yarn Spinning Mills......  R                    2281  Yarn Spinning Mills.             
                                                    ................     2299  Textile goods, NEC (Yarn of Hard 
                                                                                Fiber).                         
                                                    ................     3999  Manufacturing Industries NEC     
                                                                                (Yarn of Animal Hair).          
XXXXX..............      Yarn Texturing, Throwing,  R                    2282  Throwing and Winding Mills       
                          and Twisting Mills.                                   (Except Spooling Purchased      
                                                                                Yarns).                         
XXXXX..............      Thread Mills.............  R                   *2284  Thread Mills (Except Finishing). 
                                                    ................    *2299  Textile Goods, NEC (Thread of    
                                                                                Hard Fiber).                    
                                                    ................    *3999  Manufacturing Industries NEC     
                                                                                (Thread of Animal Hair).        
XXX................    Fabric Mills:                                                                            

[[Page 4536]]
                                                                                                                
XXXX...............     Broadwoven Fabric Mills...  N                    2211  Broadwoven Fabric Mills, Cotton. 
                                                                         2221  Broadwoven Fabric Mills, Manmade.
                                                                        *2231  Broadwoven Fabric Mills, Wool    
                                                                                (Except Wool Finishing).        
                                                    ................    *2299  Textile Goods, NEC (Broadwoven   
                                                                                Fabrics of Hard Fiber).         
XXXX...............    Narrow Fabric Mills and                                                                  
                        Schiffli Machine                                                                        
                        Embroideries:                                                                           
XXXXX..............      Narrow Fabric Mills......  R                    2241  Narrow Fabric Mills.             
                                                    ................    *2299  Textile Goods, NEC (Narrow Fabric
                                                                                of Hard Fiber).                 
XXXXX..............      Schiffli Machine           E                    2397  Schiffli Machine Embroideries.   
                          Embroideries.                                                                         
XXXX...............     Nonwoven Fabric Mills.....  R                    2297  Nonwoven Fabrics.                
                                                    ................    *2299  Textile Goods, NEC (Nonwoven     
                                                                                Felt).                          
XXXX...............    Knit Fabric Mills:                                                                       
XXXXX..............      Weft Knit Fabric Mills...  R                   *2257  Weft Knit Fabric Mills (Except   
                                                                                Finishing).                     
                                                    ................    *2259  Knitting Mills NEC (Finished     
                                                                                Articles).                      
XXXXX..............      Other Knit Fabric and      R                   *2258  Lace and Warp Knit Fabric Mills  
                          Lace Mills.                                           (Except Finishing).             
                                                    ................    *2259  Knitting Mills NEC (Finished     
                                                                                Articles).                      
XXX................    Textile and Fabric                                                                       
                        Finishing and Fabric                                                                    
                        Coating Mills:                                                                          
XXXX...............     Textile and Fabric                                                                      
                         Finishing Mills:                                                                       
XXXXX..............      Broadwoven Fabric          N                   *2231  Broadwoven Fabric Mills, Wool    
                          Finishing Mills.                                      (Wool Broadwoven Fabric         
                                                                                Finishing).                     
                                                    ................     2261  Finishing Plants, Cotton.        
                                                    ................     2262  Finishing Plants, Manmade.       
                                                    ................    *2269  Finishing Plants, NEC (Linen     
                                                                                Fabric Finishing).              
                                                    ................    *5131  Piece Goods and Notions          
                                                                                (Broadwoven Converters).        
XXXXX..............  Textile and Fabric Finishing   N                   *2231  Broadwoven Fabric Mills, Wool    
                      Mills, except Broadwoven                                  (Wool Finishing except          
                      Fabric.                                                   Broadwoven Fabric).             
                                                    ................     2257  Weft Knit Fabric Mills           
                                                                                (Finishing).                    
                                                    ................    *2258  Lace and Warp Knit Fabric Mills  
                                                                                (Finishing).                    
                                                    ................    *2269  Finishing Plants, NEC (Except    
                                                                                Linen Fabric Finishing).        
                                                    ................    *2282  Throwing and Winding Mills (Yarn 
                                                                                Finishing).                     
                                                    ................    *2284  Thread Mills (Thread Finishing). 
                                                    ................    *2299  Textile Goods, NEC (Finishing    
                                                                                Yarn/Thread of Hard Fibers).    
                                                    ................    *5131  Piece Goods and Notions          
                                                                                (Converters, Except Broadwoven  
                                                                                and Knit).                      
XXXX...............     Fabric Coating Mills......  R                    2295  Coated Fabrics, Not Rubberized.  
                                                    ................    *3069  Fabricated Rubber Products, NEC  
                                                                                (Rubberized Fabric).            
XX.................  Textile Product Mills:                                                                     
XXX................    Textile Furnishings Mills:                                                               
XXXX...............     Carpet and Rug Mills......  E                    2273  Carpets and Rugs.                
XXXX...............     Curtain and Linen Mills...                                                              
XXXXX..............      Curtain and Drapery Mills  E                    2391  Curtains and Draperies.          
XXXXX..............      Other Household Textile    R                   *2392  Housefurnishings, NEC (Except    
                          Product Mills                                         Mops and Bags).                 
XXX................    Miscellaneous Textile                                                                    
                        Product Mills:                                                                          
XXXX...............     Textile Bags and Canvas                                                                 
                         Mills:                                                                                 
XXXXX..............      Textile Bag Mills........  R                   *2392  Housefurnishings, NEC (Blanket   
                                                                                and Laundry Bags).              
                                                    ................     2393  Textile Bags.                    
XXXXX..............      Canvas and Related         E                    2394  Canvas and Related Products.     
                          Product Mills.                                                                        
XXXX...............     Other Miscellaneous                                                                     
                         Textile Product Mills:                                                                 
XXXXX..............      Rope, Cordage and Twine    E                    2298  Cordage and Twine.               
                          Mills.                                                                                
XXXXX..............      Tire Cord and Tire Fabric  E                    2296  Tire Cord and Fabrics.           
                          Mills.                                                                                
XXXXX..............      All Other Miscellaneous    R                   *2259  Knitting Mills, NEC (Except      
                          Textile Product Mills.                                Apparel).                       
                                                    ................    *2299  Textile Goods, NEC (Other Textile
                                                                                Products).                      
                                                    ................    *2395  Pleating and Stitching (Except   
                                                                                Apparel Contractors).           
                                                    ................    *2396  Automotive and Apparel Trimmings 
                                                                                (Textile Products Except        
                                                                                Automotive Trim and Printing on 
                                                                                Apparel).                       
                                                    ................    *2399  Fabricated Textile Products, NEC 
                                                                                (Except Apparel, Automotive Seat
                                                                                Belts, and Seat Covers).        
XX.................  Apparel Manufacturing:                                                                     
XXX................    Men's and Boys' Cut and Sew                                                              
                        Apparel Manufacturers and                                                               
                        Jobbers:                                                                                
XXXX...............     Men's and Boy's Cut and     R                   *2321  Men's and Boys' Shirts (Except   
                         Sew Shirt, except Work                                 Contractors).                   
                         Shirt Manufacturers and                                                                
                         Jobbers.                                                                               
                                                    ................    *2361  Girls' and Children's Dresses,   
                                                                                Blouses (Boys' Except           
                                                                                Contractors).                   
XXXX...............     Men's and Boy's Cut and     R                   *2325  Men's and Boys' Trousers and     
                         Sew Trouser, Slack, and                                Slacks (Except Contractors.     
                         Jean Manufacturers and                                                                 
                         Jobbers.                                                                               

[[Page 4537]]
                                                                                                                
                                                    ................    *2369  Girls' and Children's Outerwear, 
                                                                                NEC (Boys' Except Contractors). 
XXXX...............     Men's and Boy's Cut and     R                   *2326  Men's and Boys' Work Clothing    
                         Sew Work Clothing                                      (Except Contractors).           
                         Manufactuers and Jobbers.                                                              
XXXX...............     Men's and Boys' Cut and     R                   *2311  Men's and Boys' Suits and Coats  
                         Sew Suit, Coat, and                                    (Except Contractors).           
                         Overcoat Manufacturers                                                                 
                         and Jobbers.                                                                           
                                                    ................    *2369  Girls' and Children's Outerwear, 
                                                                                NEC (Boys' Except Contractors). 
                                                    ................    *2385  Waterproof Outerwear (Men and    
                                                                                Boys' Except Contractors).      
XXXX...............     Men's and Boys' Cut and     R                   *2329  Men's and Boys' Clothing, NEC    
                         Sew Other Outerwear                                    (Except Contractors).           
                         Manufacturers and Jobbers.                                                             
                                                    ................    *2369  Girls' and Children's Outerwear, 
                                                                                NEC (Boys' Except Contractors). 
                                                    ................    *2385  Waterproof Outerwear (Except     
                                                                                Contractors).                   
XXXX...............     Men's and Boys' Cut and     R                   *2322  Men's and Boys' Underwear and    
                         Sew Underwear and                                      Nightwear (Except Contractors). 
                         Nightwear Manufacturers                                                                
                         and Jobbers.                                                                           
                                                    ................    *2341  Women's and Children's Underwear 
                                                                                (Boys' Except Contractors).     
                                                    ................    *2369  Girls' and Childrens' Outerwear, 
                                                                                NEC (Boys' Robes Except         
                                                                                Contractors).                   
                                                    ................    *2384  Robes and Dressing Gowns (Men's  
                                                                                Except Contractors).            
XXX................    Women's and Girls' Cut and                                                               
                        Sew Apparel Manufacturers                                                               
                        and Jobbers.                                                                            
XXXX...............     Women's and Girls' Cut and  R                   *2331  Women's and Misses' Blouses and  
                         Sew Blouse and Shirt                                   Shirts (Except Contractors).    
                         Manufacturers and Jobbers.                                                             
                                                    ................    *2361  Girls' and Children's Dresses,   
                                                                                Blouses (Girls' Except          
                                                                                Contractors).                   
XXXX...............  Women's and Girls' Cut and     R                   *2335  Women's, Juniors', and Misses'   
                      Sew Dress Manufacturers and                               Dresses (Except Contractors).   
                      Jobbers                                                                                   
                                                    ................    *2361  Girls' and Children's Dresses,   
                                                                                Blouses (Girls' Except          
                                                                                Contractors).                   
XXXX...............     Women's and Girls' Cut and  R                   *2337  Women's and Misses' Suits and    
                         Sew Suit, Coat, Tailored                               Coats (Except Contractors).     
                         Jacket and Skirt                                                                       
                         Manufacturers and Jobbers.                                                             
                                                    ................    *2369  Girls' and Children's Outerwear, 
                                                                                NEC (Girls' Except Contractors).
                                                    ................    *2385  Waterproof Outerwear (Except     
                                                                                Contractors).                   
XXXX...............     Women's and Girls' Cut and  R                   *2339  Women's and Misses' Outerwear,   
                         Sew Other Outerwear                                    NEC (Except Contractors).       
                         Manufacturers and Jobbers.                                                             
                                                    ................    *2369  Girls' and Children's Outerwear, 
                                                                                NEC (Girls' Except Contractors).
                                                    ................    *2385  Waterproof Outerwear (Women's and
                                                                                Girls' Except Contractors).     
XXXX...............     Women's and Girls' Cut and  R                   *2341  Women's and Children's Underwear 
                         Sew Lingerie, Loungewear,                              (Women and Girls' Except        
                         and Nightwear.                                         Contractors).                   
                                                    ................     2342  Bras, Girdles, and Allied        
                                                                                Garments (Except Contractors).  
                                                    ................    *2369  Girls' and Children's Outerwear, 
                                                                                NEC (Girls' Except Contractors).
                                                    ................    *2384  Robes and Dressing Gowns (Women's
                                                                                Except Contractors).            
                                                    ................    *2389  Apparel and Accessories, NEC     
                                                                                (Garter Belts).                 
XXX................    Other Cut and Sew Apparel                                                                
                        Manufacturers and Jobbers:                                                              
XXXX...............     Infants' Cut and Sew        R                   *2341  Women's and Children's Underwear 
                         Apparel Manufacturers and                              (Infants' Except Contractors).  
                         Jobbers.                                                                               
                                                    ................    *2361  Girls' and Children's Dresses,   
                                                                                Blouses (Infants' Except        
                                                                                Contractors).                   
                                                    ................    *2369  Girls' and Children's Outerwear, 
                                                                                NEC (Infants' Except            
                                                                                Contractors).                   
                                                    ................    *2385  Waterproof Outerwear (Infants'   
                                                                                Except Contractors).            
XXXX...............     Fur and Leather Apparel     N                    2371  Fur Goods.                       
                         Manufacturers and Jobbers.                                                             
                                                    ................     2386  Leather and Sheep-lined Clothing.
XXXX...............     All Other Cut and Sew       R                   *2329  Men's and Boys' Outerwear, NEC   
                         Apparel Manufacturers and                              (Athletic Uniforms Except       
                         Jobbers.                                               Contractors).                   
                                                    ................    *2339  Women's and Misses' Outerwear,   
                                                                                NEC (Athletic Uniforms Except   
                                                                                Contractors).                   
                                                    ................    *2385  Waterproof Outerwear (Except     
                                                                                Contractors).                   
                                                    ................    *2389  Apparel and Accessories, NEC     
                                                                                (Garments).                     
XXX................    Cut and Sew Apparel                                                                      
                        Contractors:                                                                            

[[Page 4538]]
                                                                                                                
XXXX...............     Men's and Boys' Cut and     N                   *2311  Men's and Boys' Suits and Coats  
                         Sew Apparel Contractors.                               (Contractors).                  
                                                    ................    *2321  Men's and Boys' Shirts           
                                                                                (Contractors).                  
                                                    ................    *2322  Men's and Boys' Underwear and    
                                                                                Nightwear (Contractors).        
                                                    ................    *2325  Men's and Boys' Trousers and     
                                                                                Slacks (Contractors).           
                                                    ................    *2326  Men's and Boys' Work Clothing    
                                                                                (Contractors).                  
                                                    ................    *2329  Men's and Boys' Clothing, NEC    
                                                                                (Contractors).                  
                                                    ................    *2341  Women's and Children's Underwear 
                                                                                (Boys' Contractors).            
                                                    ................    *2361  Girls' and Children's Dresses,   
                                                                                Blouses (Boys' Contractors).    
                                                    ................    *2369  Girls' and Children's Outerwear, 
                                                                                NEC (Boys' Contractors).        
                                                    ................    *2384  Robes and Dressing Gowns (Men's  
                                                                                Contractors).                   
                                                    ................    *2385  Waterproof Outerwear (Men's and  
                                                                                Boy's Contractors).             
                                                    ................    *2395  Pleating and Stitching (Men's and
                                                                                Boy's Contractors).             
XXXX...............     Women's and Girls' Cut and  N                   *2331  Women's and Misses' Blouses and  
                         Sew Apparel Contractors.                               Shirts (Contractors).           
                                                    ................    *2335  Women's Juniors', and Misses'    
                                                                                Dresses (Contractors).          
                                                    ................    *2337  Women's and Misses' Suits and    
                                                                                Coats (Contractors).            
                                                    ................    *2339  Women's and Misses' Outerwear,   
                                                                                NEC (Contractors).              
                                                    ................    *2341  Women's and Children's Underwear 
                                                                                (Women's and Girls'             
                                                                                Contractors).                   
                                                    ................    *2342  Bras, Girdles, and Allied        
                                                                                Garments (Contractors).         
                                                    ................    *2361  Girls' and Children's Dresses,   
                                                                                Blouses (Girls' Contractors).   
                                                    ................    *2369  Girls' and Children's Outerwear, 
                                                                                NEC (Girls' Contractors).       
                                                    ................    *2384  Robes and Dressing Gowns (Women's
                                                                                Contractors).                   
                                                    ................    *2385  Waterproof Outerwear (Women's and
                                                                                Girls' Contractors).            
                                                    ................    *2389  Apparel and Accessories, NEC     
                                                                                (Contractors).                  
                                                    ................    *2395  Pleating and Stitching           
                                                                                (Contractors).                  
XXX................    Apparel Knitting Mills:                                                                  
XXXX...............     Hosiery and Socks Mills:                                                                
XXXXX..............      Sheer Hosiery Mills......  R                    2251  Women's Hosiery, except Socks.   
XXXXX..............      Other Hosiery and Socks    R                   *2252  Hosiery, NEC (Girls' Hosiery).   
                          Mills.                                                                                
XXXX...............     Other Apparel Knitting                                                                  
                         Mills:                                                                                 
XXXXX..............      Outerwear Knitting Mills.  R                    2253  Knit Outerwear Mills.            
                                                    ................    *2259  Knitting Mills, NEC (Gloves and  
                                                                                Mittens).                       
XXXXX..............      Underwear and Nightwear    E                    2254  Knit Underwear Mills.            
                          Knitting Mills.                                                                       
                                                    ................    *2259  Knitting Mills, NEC (Girdles).   
XXX................    Apparel Accessories and                                                                  
                        Other Apparel                                                                           
                        Manufacturing:                                                                          
XXXX...............     Hat, Cap, and Millinery     E                    2353  Hats, Caps, and Millinery.       
                         Manufacturing.                                                                         
XXXX...............     Glove and Mitten            R                    2381  Fabric Dress and Work Gloves.    
                         Manufacturing.                                                                         
                                                    ................     3151  Leather Gloves and Mittens.      
XXXX...............     Men's and Boys' Neckwear    E                    2323  Men's and Boys' Neckwear.        
                         Manufacturing.                                                                         
XXXX...............     Apparel Belt, Apparel       N                   *2339  Women's and Misses' Outerwear,   
                         Accessories and Other                                  NEC (Scarves).                  
                         Apparel Manufacturing.                                                                 
                                                    ................    *2385  Waterproof Outerwear (Except     
                                                                                Raincoats).                     
                                                    ................     2387  Apparel Belts.                   
                                                    ................    *2389  Apparel and Accessories, NEC     
                                                                                (Handkerchiefs, Arm Bands,      
                                                                                etc.).                          
                                                    ................    *2396  Automotive and Apparel Trimmings 
                                                                                (Apparel Findings and Trimming).
                                                    ................    *2399  Fabricated Textile Products, NEC 
                                                                                (Except Automotive Seat Belts,  
                                                                                Seat Covers, and Textile        
                                                                                Products).                      
XX.................  Leather and Allied Product                                                                 
                      Manufacturing:                                                                            
XXX................    Leather and Hide Tanning                                                                 
                        and Finishing:                                                                          
XXXX...............     Leather and Hide Tanning    R                    3111  Leather Tanning and Finishing.   
                         and Finishing.                                                                         
                                                    ................    *3999  Manufacturing Industries, NEC    
                                                                                (Fur Dressing and Finishing).   
XXX................    Footwear Manufacturing:                                                                  
XXXX...............     Footwear Manufacturing:                                                                 
XXXXX..............      Rubber and Plastic         E                    3021  Rubber and Plastics Footwear.    
                          Footwear Manufacturing.                                                               
XXXXX..............      House Slipper              E                    3142  House Slippers.                  
                          Manufacturing.                                                                        
XXXXX..............      Men's Footwear             E                    3143  Men's Footwear, except Athletic. 
                          Manufacturing, except                                                                 
                          Athletic.                                                                             
XXXXX..............      Women's Footwear           E                    3144  Women's Footwear, except         
                          Manufacturing except                                  Athletic.                       
                          Athletic.                                                                             
XXXXX..............      Other Footwear             E                    3149  Footwear except Rubber, NEC.     
                          Manufacturing.                                                                        
XXX................    Miscellaneous Leather and                                                                
                        Allied Product                                                                          
                        Manufacturing:                                                                          
XXXX...............     Miscellaneous Leather and                                                               
                         Allied Product                                                                         
                         Manufacturing:                                                                         

[[Page 4539]]
                                                                                                                
XXXXX..............      Luggage Manufacturing....  E                    3161  Luggage.                         
XXXXX..............      Women's Handbag and Purse  E                    3171  Women's Handbags and Purses.     
                          Manufacturing.                                                                        
XXXXX..............      Other Miscellaneous        R                   *3131  Boot and Shoe Cut Stock and      
                          Leather Good                                          Findings (Except Wood Heels and 
                          Manufacturing.                                        Metal Buckles).                 
                                                    ................     3172  Personal Leather Goods, except   
                                                                                Women's Handbags and Purses.    
                                                    ................     3199  Leather Goods, NEC.              
----------------------------------------------------------------------------------------------------------------
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 for Not Elsewhere Classified.                                    



                                Table 2.                                
------------------------------------------------------------------------
                           1987 SIC                                     
    1987 SIC Code         Description         1997 U.S. Description     
------------------------------------------------------------------------
2211@................  Broadwoven        Broadwoven Fabric Mills (pt).  
                        Fabric Mills,                                   
                        Cotton.                                         
2221@................  Broadwoven        Broadwoven Fabric Mills (pt).  
                        Fabric Mills,                                   
                        Manmade.                                        
2231@................  Broadwoven        Broadwoven Fabric Mills (pt).  
                        Fabric Mills,                                   
                        Wool Except                                     
                        Finishing.                                      
                         Except          Broadwoven Fabric Mills (pt).  
                          Finishing.                                    
                         Finishing.....  Broadwoven Fabric Finishing    
                                          Mills (pt).                   
2241.................  Narrow Woven      Narrow Fabric Mills (pt).      
                        Fabric Mills.                                   
2251@................  Women's Hosiery,  Sheer Hosiery Mills (pt).      
                        Except Socks.                                   
2252@................  Hosiery, NEC:                                    
                         Girls' Hosiery  Sheer Hosiery Mills (pt).      
                         Socks.........  Other Hosiery and Socks Mills. 
2253@................  Knit Outerwear    Outerwear Knitting Mills (pt). 
                        Mills.                                          
2254.................  Knit Underwear    Underwear and Nightwear        
                        Mills.            Knitting Mills.               
2257@................  Weft Knit Fabric  Weft Knit Fabric Mills.        
                        Mills.                                          
                         Except          Weft Knit Fabric Mills.        
                          Finishing.                                    
                         Finishing.....  Textile and Fabric Finishing   
                                          Mills Except Broadwoven Fabric
                                          pt).                          
2258@................  Lace and Warp                                    
                        Knit Fabric                                     
                        Mills:                                          
                         Except          Other Knit Fabric and Lace     
                          Finishing.      Mills.                        
                         Finishing.....  Textile and Fabric Finishing   
                                          Mills, except Broadwoven      
                                          Fabric (pt).                  
2259@................  Knitting Mills,                                  
                        NEC:                                            
                         Knit Gloves     Outerwear Knitting Mills (pt). 
                          and Mittens.                                  
                         Girdles.......  Underwear and Nightwear        
                                          Knitting Mills (pt).          
                         Finished        Weft Knit Fabric Mills (pt).   
                          Articles of                                   
                          Weft Knit                                     
                          Fabric.                                       
                         Finished        Other Knit Fabric and Lace     
                          Articles of     Mills (pt).                   
                          Warp Knit                                     
                          Fabric.                                       
2261@................  Finishing         Broadwoven Fabric Finishing    
                        Plants, Cotton.   Mills (pt).                   
2262@................  Finishing         Broadwoven Fabric Finishing    
                        Plants, Manmade.  Mills (pt).                   
2269@................  Finishing                                        
                        Plants, NEC:                                    
                         Broadwoven      Broadwoven Fabric Finishing    
                          Finishing.      Mills (pt).                   
                         Except          Textile and Fabric Finishing   
                          Broadwoven      Mills, except Broadwoven      
                          Finishing.      Fabric (pt).                  
2273.................  Carpets and Rugs  Carpet and Rug Mills.          
2281@................  Yarn Spinning     Yarn Spinning Mills (pt).      
                        Mills.                                          
2282@................  Throwing and                                     
                        Winding Mills:                                  
                         Except          Yarn Texturing, Throwing and   
                          Spooling        Twisting Mills.               
                          Purchased                                     
                          Yarn.                                         
                         Spooling        Textile and Fabric Finishing   
                          Purchased       Mills, except Broadwoven      
                          Yarn.           Fabric (pt).                  
2284@                  Thread Mills:                                    
                         Except          Thread Mills (pt).             
                          Finishing.                                    
                         Finishing.....  Textile and Fabric Finishing   
                                          Mills, Except Broadwoven      
                                          Fabric (pt).                  
2295@................  Coated Fabrics,   Fabric Coating Mills (pt).     
                        Not Rubberized.                                 
2296.................  Tire Cord and     Tire Cord and Tire Fabric      
                        Fabrics.          Mills.                        
2297@................  Nonwoven Fabrics  Nonwoven Fabric Mills (pt).    
2298.................  Cordage and       Rope, Cordage and Twine Mills. 
                        Twine.                                          
2299@................  Textile Goods,                                   
                        NEC:                                            
                         Broadwoven      Broadwoven Fabric Mills (pt).  
                          Fabric of                                     
                          Hard Fibers.                                  
                         Nonwoven Felt.  Nonwoven Fabric Mills (pt).    

[[Page 4540]]
                                                                        
                         Finishing Hard  Textile and Fabric Finishing   
                          Fiber Thread    Mills, except Broadwoven      
                          and Yarn.       Fabric (pt).                  
                         Narrow Woven    Narrow Fabric Mills (pt).      
                          Fabric of                                     
                          Hard Fibers.                                  
                         Thread of Hard  Thread Mills (pt).             
                          Fibers.                                       
                         Yarn of Hard    Yarn Spinning Mills (pt).      
                          Fibers.                                       
                         Other Textile   All Other Miscellaneous Textile
                          Goods.          Product Mills (pt).           
2311@................  Men's and Boys'                                  
                        Suits and                                       
                        Coats:                                          
                         Contractors...  Men's and Boys' Cut and Sew    
                                          Suit, Coat, and Overcoat      
                                          Manufacturers and Jobbers     
                                          (pt).                         
                         Except          Men's and Boys' Cut and Sew    
                          Contractors.    Apparel Contractors (pt).     
2321@................  Men's and Boys'                                  
                        Shirts:                                         
                         Contractors...  Men's and Boys' Cut and Sew    
                                          Apparel Contractors (pt).     
                         Except          Men's and Boys' Cut and Sew    
                          Contractors.    Shirt, except Work Shirt      
                                          Manufacturers and Jobbers     
                                          (pt).                         
2322@................  Men's and Boys'                                  
                        Underwear and                                   
                        Nightwear:                                      
                         Contractors...  Men's and Boys' Cut and Sew    
                                          Apparel Contractors (pt).     
                         Except          Men's and Boys' Cut and Sew    
                          Contractors.    Underwear and Nightwear       
                                          Manufacturers and Jobbers     
                                          (pt).                         
2323.................    Men's and       Men's and Boys' Neckwear.      
                          Boys'                                         
                          Neckwear.                                     
2325@................  Men's and Boys'                                  
                        Trousers and                                    
                        Slacks:                                         
                         Contractors...  Men's and Boys' Cut and Sew    
                                          Apparel Contractors (pt).     
                         Except          Men's and Boys' Cut And Sew    
                          Contractors.    Trouser, Slack, And Jean      
                                          Manufacturers and Jobbers     
                                          (pt).                         
2326@................  Men's and Boys'                                  
                        Work Clothing:                                  
                         Contractors...  Men's and Boys' Cut and Sew    
                                          Apparel Contractors (pt).     
                         Except          Men's and Boys' Cut and Sew    
                          Contractors.    Work Clothing Manufacturers   
                                          and Jobbers.                  
2329@................  Men's and Boys'                                  
                        Clothing, NEC:                                  
                         Contractors...  Men's and Boys' Cut and Sew    
                                          Apparel Contractors (pt).     
                         Except          Other Men's and Boys' Cut and  
                          Contractors.    Sew Outerwear Manufacturers   
                                          and Jobbers (pt).             
                         Athletic        All Other Cut and Sew Apparel  
                          Uniforms.       (pt).                         
2331@................  Women's and                                      
                        Misses' Blouses                                 
                        and Shirts:                                     
                         Contractors...  Women's and Girls' Cut and Sew 
                                          Apparel Contractors (pt).     
                         Except          Women's and Girls' Cut and Sew 
                          Contractors.    Blouse and Shirt Manufacturers
                                          and Jobbers (pt).             
2335@................  Women's,                                         
                        Junior's, and                                   
                        Misses'                                         
                        Dresses:                                        
                         Contractors...  Women's and Girls' Cut and Sew 
                                          Apparel Contractors (pt).     
                         Except          Women's and Girls' Cut and Sew 
                          Contractors.    Dress Manufacturers and       
                                          Jobbers (pt).                 
2337@................  Women's and                                      
                        Misses' Suits                                   
                        and Coats:                                      
                         Contractors...  Women's and Girls' Cut and Sew 
                                          Apparel Contractors (pt).     
                         Except          Women's and Girls' Cut and Sew 
                          Contractors.    Suit, Coat, Tailored Jacket,  
                                          and Skirt Manufacturers and   
                                          Jobbers (pt).                 
2339@................  Women's and                                      
                        Misses'                                         
                        Outerwear, NEC:                                 
                         Scarves.......  Apparel Belt, Apparel          
                                          Accessories and Other Apparel 
                                          Manufacturing (pt).           
                         Contractors...  Women's and Girls' Cut and Sew 
                                          Apparel Contractors (pt).     
                         Except          Women's and Girls' Cut and Sew 
                          Contractors.    Outerwear Manufacturers and   
                                          Jobbers (pt).                 
                         Athletic        All Other Cut and Sew Apparel  
                          Uniforms.       Manufacturers and Jobbers     
                                          (pt).                         
2341@................  Women's                                          
                        Underwear:                                      
                         Women and       Women's and Girls' Cut and Sew 
                          Girls'          Apparel Contractors (pt).     
                          Contractors.                                  
                         Boys'           Men's and Boys' Cut and Sew    
                          Contractors.    Apparel Contractors (pt).     
                         Women's and     Women's and Girls' Cut and Sew 
                          Girls',         Lingerie, Loungewear, and     
                          Except          Nightwear Manufacturers and   
                          Contractors.    Jobbers (pt).                 
                         Boys' Except    Men's and Boys' Cut and Sew    
                          Contractors.    Underwear and Nightwear       
                                          Manufacturers and Jobbers     
                                          (pt).                         
                         Infants'......  Infants' Cut and Sew Apparel   
                                          Manufacturers and Jobbers     
                                          (pt).                         
2342@................  Bras, Girdles,                                   
                        and Allied                                      
                        Garments:                                       
                         Contractors...  Women's and Girls' Cut and Sew 
                                          Apparel Contractors (pt).     
                         Except          Women's and Girls' Cut and Sew 
                          Contractors.    Lingerie, Loungewear, and     
                                          Nightwear Manufacturers and   
                                          Jobbers (pt).                 
2353.................  Hats, Caps, and   Hat, Cap, and Millinery        
                        Millinery.        Manufacturing.                
2361@................  Girls' and                                       
                        Children's                                      
                        Dresses,                                        
                        Blouses:                                        
                         Infants'        Infants' Cut and Sew Apparel   
                          Dresses,        Manufacturers and Jobbers     
                          Blouses, and    (pt).                         
                          Shirts.                                       
                         Boys' Shirts..  Men's and Boys' Cut and Sew    
                                          Shirt, except Work Shirt      
                                          Manufacturers and Jobbers     
                                          (pt).                         
                         Girls' Blouses  Women's and Girls' Cut and Sew 
                          and Shirts.     Blouse and Shirt Manufacturers
                                          and Jobbers (pt).             
                         Girls' Dresses  Women's and Girls' Cut and Sew 
                                          Dress Manufacturers and       
                                          Jobbers (pt).                 

[[Page 4541]]
                                                                        
                         Girls'          Women's and Girls' Cut and Sew 
                          Contractors.    Apparel Contractors (pt).     
2369@................  Girls' and                                       
                        Children's                                      
                        Outerwear, NEC:                                 
                         Infants'        Infants' Cut and Sew Apparel   
                          Outerwear,      Manufacturers and Jobbers     
                          NEC.            (pt).                         
                         Boys' Suits     Men's and Boys' Cut and Sew    
                          and Coats.      Suit, Coat, and Overcoat      
                                          Manufacturers and Jobbers     
                                          (pt).                         
                         Boys' Trousers  Men's and Boys' Cut and Sew    
                          and Slacks.     Trouser, Slack, and Jean      
                                          Manufacturers and Jobbers     
                                          (pt).                         
                         Boys'           Other Men's and Boys' Cut and  
                          Outerwear,      Sew Outerwear Manufacturers   
                          NEC.            and Jobbers (pt).             
                         Boys' Robes...  Men's and Boys' Cut and Sew    
                                          Underwear and Nightwear       
                                          Manufacturers and Jobbers     
                                          (pt).                         
                         Boys'           Men's and Boys' Cut and Sew    
                          Contractors.    Apparel Contractors (pt).     
                         Girls' Suits,   Women's and Girls' Cut and Sew 
                          Coats,          Suit, Coat, Tailored Jacket,  
                          Skirts, Etc..   and Skirt Manufacturers and   
                                          Jobbers (pt).                 
                         Girls'          Women's and Girls' Cut and Sew 
                          Outerwear,      Outerwear Manufacturers and   
                          NEC.            Jobbers (pt).                 
                         Girls' Robes..  Women's and Girls' Cut and Sew 
                                          Lingerie, Loungewear, and     
                                          Nightwear Manufacturers and   
                                          Jobbers (pt).                 
                         Girls'          Women's and Girls' Cut and Sew 
                          Contractors.    Apparel Contractors (pt).     
2371.................  Fur Goods.......  Fur and Leather Apparel        
                                          Manufacturing (pt).           
2381@................  Fabric Dress and  Glove and Mitten Manufacturing 
                        Work Gloves.      (pt).                         
2384@................  Robes and                                        
                        Dressing Gowns:                                 
                         Women's Except  Women's and Girls' Cut and Sew 
                          Contractors.    Lingerie, Loungewear, and     
                                          Nightwear Manufacturers and   
                                          Jobbers (pt).                 
                         Men's Except    Men's and Boys' Cut and Sew    
                          Contractors.    Underwear and Nightwear       
                                          Manufacturers and Jobbers     
                                          (pt).                         
                         Men's and       Men's and Boys' Cut and Sew    
                          Boys'           Apparel Contractors.          
                          Contractors.                                  
                         Women's and     Women's and Girls' Cut and Sew 
                          Girls'          Apparel Contractors.          
                          Contractors.                                  
2385@................  Waterproof                                       
                        Outerwear:                                      
                         Raincoats       Men's and Boys' Cut and Sew    
                          (Men's and      Suit, Coat, and Overcoat      
                          Boys').         Manufacturers and Jobbers     
                                          (pt).                         
                         Raincoats       Women's and Girls' Cut and Sew 
                          (Women's and    Suit, Coat, Tailored Jacket,  
                          Girls').        and Skirt Manufacturers and   
                                          Jobbers (pt).                 
                         Other Men's     Men's and Boys' Cut and Sew    
                          and Boys'       Outerwear Manufacturers and   
                          Outerwear.      Jobbers.                      
                         Other Women's   Women's and Girls' Cut and Sew 
                          and Girls'      Outerwear Manufacturers and   
                          Outerwear.      Jobbers.                      
                         Infants'        Infants' Cut and Sew Apparel   
                          Waterproof      Manufacturers and Jobbers.    
                          Outerwear                                     
                          Except                                        
                          Contractors.                                  
                         Aprons, Bibs,   Apparel Belt, Apparel          
                          and Other       Accessories, and Other Apparel
                          Miscellaneous   Manufacturing (pt).           
                          Waterproof                                    
                          Items.                                        
                         Contractors     Men's and Boys' Cut and Sew    
                          (Men's and      Apparel Contractors (pt).     
                          Boys').                                       
                         Contractors     Women's and Girls' Cut and Sew 
                          (Women's and    Apparel Contractors (pt).     
                          Girls').                                      
2386@................  Leather and       Fur and Leather Apparel        
                        Sheep-Lined       Manufacturing (pt).           
                        Clothing.                                       
2387@................  Apparel Belts...  Apparel Belt, Apparel          
                                          Accessories, and Other Apparel
                                          Manufacturing (pt).           
2389@................  Apparel and                                      
                        Accessories,                                    
                        NEC:                                            
                         Handkerchiefs,  Apparel Belt, Apparel          
                          Arm bands,      Accessories, and Other Apparel
                          etc.            Manufacturing (pt).           
                         Academic/       All Other Cut and Sew Outerwear
                          Clerical        Manufacturers and Jobbers     
                          Outerwear.      (pt).                         
                         Garters and     Women's and Girls' Cut and Sew 
                          Garter Belts.   Lingerie, Loungewear, and     
                                          Nightwear Manufacturers and   
                                          Jobbers (pt).                 
                         Women's         Women's and Girls' Cut and Sew 
                          Contractors.    Apparel Contractors (pt).     
                         Men's           Mens' and Boys' Cut and Sew    
                          Contractors.    Apparel Contractors (pt).     
2391.................  Curtains and      Curtain and Drapery Mills.     
                        Draperies.                                      
2392@................  Housefurnishings                                 
                        , NEC:                                          
                         Blanket and     Textile Bag Mills (pt).        
                          Laundry Bags.                                 
                         Mops..........  Broom and Brush Manufacturing  
                                          (pt).                         
                         Other           Other Household Textile Product
                          Housefurnishi   Mills (pt).                   
                          ngs.                                          
2393@................  Textile Bags....  Textile Bag Mills (pt).        
2394.................  Canvas and        Canvas and Related Product     
                        Related Product   Mills.                        
                        Mills.                                          
2395@................  Pleating and                                     
                        Stitching:                                      
                         Pleating and    All Other Miscellaneous Textile
                          Stitching,      Product Mills (pt).           
                          Except                                        
                          Apparel                                       
                          Contractors.                                  
                         Apparel         Men's and Boys' Cut and Sew    
                          Contractors     Apparel Contractors (pt).     
                          (Men's).                                      
                         Apparel         Women's and Girls' Cut and Sew 
                          Contractors     Apparel Contractors (pt).     
                          (Women's).                                    
2396@................  Automotive and                                   
                        Apparel                                         
                        Trimmings:                                      

[[Page 4542]]
                                                                        
                         Apparel         Motor Vehicle Fabric Accessory 
                          Findings and    and Seat Manufacturing (pt)   
                          Trimmings.      (Included in the              
                                          Transportation Equipment      
                                          Manufacturing subsector).     
                         Automotive      Motor Vehicle Fabric Accessory 
                          Trimmings.      and Seat Manufacturing (pt)   
                                          (Included in the              
                                          Transportation Equipment      
                                          Manufacturing subsector).     
                         Printing On     Other Commercial Printing      
                          Apparel.        (Included in the Printing and 
                                          Related Support Activities    
                                          subsector).                   
                         Other           All Other Miscellaneous Textile
                          Trimmings and   Product Mills (pt).           
                          Findings.                                     
2397.................  Schiffli Machine  Schiffli Machine Embroideries. 
                        Embroideries.                                   
2399@................  Fabricated                                       
                        Textile                                         
                        Products, NEC:                                  
                         Aprons, Money   Apparel Belt, Apparel          
                          Belts, and      Accessories, and Other Apparel
                          Diapers.        Manufacturing (pt).           
                         Seat Belts and  Motor Vehicle Fabric Accessory 
                          Seat and Tire   and Seat Manufacturing (pt)   
                          Covers.         (Included in the              
                                          Transportation Equipment      
                                          Manufacturing subsector).     
                         Other           All Other Miscellaneous Textile
                          Fabricated      Product Mills (pt).           
                          Textile                                       
                          Products.                                     
3111.................  Leather Tanning   Leather and Hide Tanning and   
                        and Finishing.    Finishing.                    
3131@................  Footwear Cut                                     
                        Stock:                                          
                         Wood Heels....  All Other Miscellaneous Wood   
                                          Product Manufacturing         
                                          (Included in the Wood Product 
                                          Manufacturing, except         
                                          Furniture subsector).         
                         Metal Buckles.  Fastener, Button, Needle and   
                                          Pin Manufacturing (Included in
                                          Miscellaneous Manufacturing   
                                          subsector) (pt).              
                         Other Footwear  Other Miscellaneous Leather and
                          Cut Stock.      Allied Product Manufacturing  
                                          (pt).                         
3142.................  House Slippers..  House Slipper Manufacturing.   
3143.................  Men's Footwear,   Men's Footwear Manufacturing,  
                        Except Athletic.  Except Athletic.              
3144.................  Women's           Women's Footwear Manufacturing,
                        Footwear,         Except Athletic.              
                        Except Athletic.                                
3149.................  Footwear, Except  Other Footwear Manufacturing.  
                        Rubber, NEC.                                    
3161.................  Luggage.........  Luggage Manufacturing.         
3171.................  Women's Handbags  Women's Handbag and Purse      
                        and Purses.       Manufacturing.                
3172@................  Personal Leather  Other Miscellaneous Leather    
                        Goods, NEC.       Good Manufacturing (pt).      
3199@................  Leather Goods,    Other Miscellaneous Leather    
                        NEC.              Good Manufacturing (pt).      
------------------------------------------------------------------------
 The abbreviation ``pt'' means ``part of''; @ means time series break   
  has been created that is greater than 3% of the 1992 value of         
  shipments for the 1987 SIC industry. The abbreviation NEC is used for 
  Not Elsewhere Classified.                                             



Description of Changes to the U.S. System

    1. Subsector Structure--Three industry subsectors replace 1987 
Major Groups 22, Textile Mill Products and 23, Apparel and Other 
Textile Products.
    The Textile Mills subsector includes the activities of fiber and 
yarn preparation and finishing, fabric forming, and fabric finishing. 
It includes 1987 SIC Industry Groups 221, Broadwoven Fabric Mills, 
Cotton; 222, Broadwoven Fabric Mills, Manmade Fiber and Silk; 223, 
Broadwoven Fabric Mills, Wool; 224, Narrow Fabric Mills; 226, Textile 
Finishing, except Wool; and 228, Yarn and Thread Mills. It also 
includes 1987 SIC codes 2257, Weft Knit Fabric Mills; 2258, Lace and 
Warp Knit Fabric Mills; 2295, Coated Fabrics; 2297, Nonwoven Fabrics; 
and 2397, Schiffli Machine Embroideries.
    The Textile Product Mills subsector includes the activities of 
manufacturing finished textile products other than apparel. It includes 
1987 SIC Industry Groups 227, Carpets and Rugs; 1987 SIC industries 
2296, Tire Cord and Tire Fabric; 2298, Cordage and Twine; 2391, 
Curtains and Draperies; 2392, Housefurnishings, NEC; 2393, Textile 
Bags; 2394, Canvas and Related Products; and 2399, Fabricated Textile 
Products, NEC.
    The Apparel Manufacturing subsector includes the activities of 
manufacturing apparel. It includes the 1987 SIC Industry Groups 231, 
Men's and Boys' Suits and Coats; 232, Men's and Boys' Furnishings; 233, 
Women's and Misses' Outerwear; 234, Women's and Children's 
Undergarments; 235, Hats, Caps and Millinery; 236, Girls' and 
Children's Outerwear; 237, Fur Goods; and 238, Miscellaneous Apparel 
and Accessories. It also includes 1987 SIC industries 2251, Women's 
Hosiery, except Socks; 2252, Hosiery, NEC; 2253, Knit Outerwear Mills; 
and 2254, Knit Underwear Mills.
    This structure represents the flow of activities through the 
various textile and apparel industries. It was strongly supported by 
several segments of the industry and agreed to by both Canada and 
Mexico.
    The total number of industries for these subsectors is 44 and 
unchanged from 1987 to 1997. There are six new industries for these 
subsectors. For time series linkage, eleven of the 1987 industries are 
comparable within three percent of the 1997 industries.
    2. Textile Mills--Two new industries were added to the 1997 
national industry structure for this subsector. New industries were 
created for:
    Broadwoven Fabric Mills from 1987 SIC 2211, Broadwoven Fabric 
Mills, Cotton; 1987 SIC 2221, Broadwoven Fabric Mills, Manmade; part of 
1987 SIC 2231, Broadwoven Fabric Mills, Wool; and part of 1987 SIC 
2299, Textile Goods, NEC. These industries include establishments that 
weave yarn into fabric. In the past, the weaving industries were 
separated by type of yarn used, e.g., cotton, manmade, etc. and this 
resulted in substantial industry switching and classification problems.
    Broadwoven Fabric Finishing Mills from 1987 SIC 2261, Finishing 
Plants, Cotton; 1987 SIC 2262, Finishing Plants, Manmade; and part of 
1987 SIC 2231, 

[[Page 4543]]
Broadwoven Fabric Mills, Wool. As with weaving above, these industries 
are made up of establishments that perform the same activity, finishing 
of textile fabric.
    Three activities were transferred into the 1997 Textile Mills 
subsector.
    Broadwoven converters were transferred from part of 1987 Wholesale 
Trade SIC 5131, Piece Goods and Notions, into part of NAICS industry 
Broadwoven Fabric Finishing. This entrepreneurial function is more 
closely related to manufacturing than wholesaling.
    Converters, except broadwoven were transferred from part of 1987 
Wholesale Trade SIC 5131, Piece Goods and Notions, into the new 
industry Finishing, Except Broadwoven Fabric Finishing. This 
entrepreneurial function is more closely related to manufacturing than 
wholesaling.
    Rubberized fabric was transferred from part of 1987 SIC 3069, 
Fabricated Rubber Products, NEC, into Fabric Coating Mills because 
coating fabric is the same activity regardless of the material used.
    Five activities included in this 1997 subsector were transferred 
from one industry to another within the Textile Mills subsector.
    Yarn of hard fiber was transferred from part of 1987 SIC 2299, 
Textile Goods, NEC, into Yarn Spinning Mills because there is no 
difference in the spinning activity.
    Thread of hard fiber was transferred from part of 1987 SIC 2299, 
Textile Goods, NEC, into Thread Mills because the production of thread 
does not vary by type of fiber.
    Broadwoven fabric of hard fiber was transferred from part of 1987 
SIC 2299, Textile Goods, NEC, into Broadwoven Fabric Mills because 
there is no difference in the weaving activity.
    Narrow fabric of hard fiber was transferred from part of 1987 SIC 
2299, Textile Goods, NEC, into Narrow Fabric Mills because of the same 
reason shown above.
    Felt transferred from part of 1987 SIC 2299, Textile Goods, NEC, 
into Nonwoven Fabric Mills because it is one of several ways to 
manufacture nonwoven fabric.
    The number of textile mills industries for 1997 is 12. For time 
series linkage, only one of the 1987 industries is comparable within 
three percent of 1997 industries.
    3. Textile Product Mills--There were no new industries created for 
this subsector. One activity transferred out of this subsector.
    Mops were transferred from part of 1987 SIC 2392, House 
Furnishings, NEC, into Broom and Brush Manufacturing in the 
Miscellaneous Manufacturing subsector to achieve international 
comparability.
    One activity included in the 1997 Textile Product Mills subsector 
was transferred between industries.
    Knit gloves and girdles were transferred from part of 1987 SIC 
2259, Knitting Mills, NEC, into All Other Miscellaneous Textile Product 
Mills as a function of a textile product mill rather than a basic 
textile mill.
    There are eight industries in the 1997 Textile Product Mills 
subsector. For time series linkage, six of the 1987 industries are 
comparable within three percent of the 1997 industries.
    4. Apparel Manufacturing--Four new industries were created for this 
1997 industry subsector.
    Men's and Boys' Cut and Sew Apparel Contractors from parts of the 
1987 Men's and Boys', Children's and Miscellaneous Apparel industries. 
This industry was created because the production function of 
contractors is so different than that of manufacturers and jobbers.
    Women's and Girls' Cut and Sew Apparel Contractors from parts of 
the 1987 Women's, Girls', Children's, and Miscellaneous Apparel 
industries. This industry was created because the production function 
of contractors is so different than that of manufacturers and jobbers.
    Fur and leather clothing from the 1987 SIC 2386, Leather and Sheep 
Lined Clothing, and fur apparel from part of 1987 SIC 2371, Fur Goods. 
Both of these industries are very small and somewhat similar in 
function.
    Apparel Belt, Accessories and Other Apparel Manufacturing from 1987 
SIC 2387, Apparel Belts; 1987 SIC 2396, Automotive and Apparel 
Trimmings; and 1987 SIC 2399, Fabricated Textile Products, NEC. This is 
essentially a new all other category that was created from pieces left 
from several industries.
    Three activities were transferred from 1987 Major Group, Apparel 
and Other Textile Products.
    Seat belts and seat and tire covers were transferred from part of 
1987 SIC 2399, Fabricated Textile Products, NEC, into Motor Vehicle 
Fabric Accessory and Seat Manufacturing in the Transportation Equipment 
Manufacturing subsector to achieve international comparability. Canada 
and Mexico already have these activities associated with motor vehicle 
manufacturing.
    Automotive trimmings were transferred from part of 1987 SIC 2396, 
Automotive and Apparel Trimmings, into Motor Vehicle Fabric Accessory 
and Seat Manufacturing in the Transportation Equipment Manufacturing 
subsector to achieve international comparability. Canada and Mexico 
already have these activities associated with motor vehicle 
manufacturing.
    Printing on apparel was transferred from part of 1987 SIC 2396, 
Automotive and Apparel Trimming, into Other Commercial Printing in the 
Printing and Related Support Activities subsector to be shown later. 
This was done to achieve international comparability. Mexico's 
establishments do printing without regard to the material.
    One activity was transferred into this subsector.
    Leather gloves and mittens were transferred from 1987 Major Group 
31, Leather and Leather Products, into Glove and Mitten Manufacturing 
to achieve international comparability. Canada cannot separate the 
production of leather gloves and mittens from fabric gloves and mittens 
because the leather activity is too small.
    Also there were a large number of activities that transferred to 
other industries within the textiles and apparel subsectors. Some of 
the more significant of these are:
    Little boys' apparel was transferred from parts of 1987 SIC codes 
2341, Women's and Children's Underwear; 2361, Girls' and Children's 
Dresses, Blouses, and Shirts; and 2369, Girls' and Children's 
Outerwear, NEC, to parts of various industries for men's and boys' 
apparel because of the overlap with manufacturers of men's and boys' 
clothing.
    Cut and sew contractors were transferred from each of the 1987 SIC 
codes for outerwear and underwear into the two new industries for 
contractors. This industry was created because the production function 
of contractors is so different than that of manufacturers and jobbers.
    There are 24 industries included in Apparel Manufacturing. For time 
series comparability, four 1987 industries are comparable within three 
percent of 1997.
    5. Leather and Allied Product Manufacturing--Three activities were 
transferred out of the subsector.
    Wood heels were transferred from part of 1987 SIC 3131, Footwear 
Cut Stock, into All Other Miscellaneous Wood Product Manufacturing to 
be published separately to achieve international comparability. Canada 
and Mexico had these classified elsewhere.
    Metal buckles were transferred from part of the 1987 SIC 3131, 
Footwear Cut Stock, into Fastener, Button, Needle, and Pin 
Manufacturing in the 

[[Page 4544]]
Miscellaneous Manufacturing subsector to be published separately, to 
achieve international comparability. Canada and Mexico had these 
classified elsewhere.
    Leather gloves and mittens were transferred into Glove and Mitten 
Manufacturing for international comparability.
    Two activities were transferred into NAICS Leather and Allied 
Product Manufacturing.
    Fur dressing and finishing was transferred from part of 1987 SIC 
3999 Manufacturing Industries, NEC, into Leather and Hide Tanning and 
Finishing to achieve international comparability. The U.S. changed in 
order to agree with Canada and Mexico.
    Rubber and plastic footwear was transferred from the 1987 Major 
Group 30, Rubber and Miscellaneous Plastics Products, into this 
subsector to achieve international comparability. Canada and Mexico do 
not distinguish footwear manufacturing based on material.
    Also, there were several activities that transferred within the 
leather and allied product manufacturing industries. The number of 
leather and allied product manufacturing industries decreased from 11 
in 1987 to 7 in 1997. For time series linkage, 7 of the 11 1987 
industries are comparable within three percent of the 1997 industries.

PART III--Proposed New Industry Structure for Food Manufacturing and 
Beverage and Tobacco Product Manufacturing

Section A--NAICS Structure

North American Industry Classification System (NAICS)
Agreement Number 6

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

Food Manufacturing
Beverage and Tobacco Product Manufacturing

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
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 August 30, 1995 through September 1, 1995 in 
Washington, DC.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........     9/1/95
Mexico..............................  /S/ Enrique Ordaz......     9/1/95
United States.......................  /S/ Jack E. Triplett...     9/1/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Food Manufacturing
XXX  Animal Food Manufacturing
XXXX  Animal Food Manufacturing
XXX  Grain and Oilseed Milling
XXXX  Flour Milling and Malt Manufacturing
XXXX  Starch and Vegetable Fats and Oils Manufacturing
XXXX  Breakfast Cereal Manufacturing
XXX  Sugar and Confectionery Product Manufacturing
XXXX  Sugar Manufacturing
XXXX  Chocolate and Confectionery Manufacturing from Cocoa Beans
XXXX  Confectionery Manufacturing from Purchased Chocolate
XXXX  Non-Chocolate Confectionery Manufacturing
XXX  Preserved Fruit, Vegetable, and Specialty Manufacturing
XXXX  Frozen Food Processing
XXXX  Canning, Pickling and Drying
XXX  Dairy Product Manufacturing
XXXX  Dairy Product, Except Frozen Dairy Product Manufacturing
XXXX  Ice Cream and Frozen Dessert Manufacturing
XXX  Meat and Seafood Product Manufacturing
XXXX  Animal Slaughtering and Processing
XXXX  Seafood Product Preparation and Packaging
XXX  Bakeries and Tortilleries
XXXX  Bread and Bakery Product Manufacturing
XXXX  Cookie, Cracker, and Pasta Manufacturing
XXXX  Tortilleries
XXX  Miscellaneous Food Manufacturing
XXXX  Snack Food Manufacturing
XXXX  Coffee and Tea Manufacturing
XXXX  Flavoring Syrup and Concentrate Manufacturing
XXXX  Seasoning and Dressing Manufacturing
XXXX  Other Miscellaneous Food Manufacturing
XX  Beverage and Tobacco Product Manufacturing
XXX  Beverage Manufacturing
XXXX  Soft Drink and Ice Manufacturing
XXXX  Breweries
XXXX  Wineries
XXXX  Distilleries
XXX  Tobacco Manufacturing
XXXX  Tobacco Stemming and Redrying
XXXX  Tobacco Product Manufacturing

Attachment 2--North American Industry Classification System

    Draft Classification for:

Food Manufacturing
Beverage and Tobacco Product Manufacturing

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industrial classification for these 
industries.
    The draft classification provides for two subsectors, Food 
Manufacturing and Beverage and Tobacco Product Manufacturing. These 
subsectors are sub-divided into ten industry groups and twenty eight 
industries. The subsectors are part of the Manufacturing sector of the 
classification.

A General Outline

    Food Manufacturing includes establishments that transform livestock 
and agricultural products into products for intermediate or final 
consumption. The industry groups are distinguished by the processes and 
the nature of the raw materials used. The first two categories, Animal 
Food Manufacturing and Grain and Oilseed Milling, are characterized by 
the grinding process. Excluded from this industry group is the nixtamal 
milling carried out in Mexico, due to the integration of this activity 
with the preparation of corn tortillas.
    The Sugar and Confectionery Product Manufacturing industry group 
includes establishments that process agricultural inputs such as sugar 
cane, beet, and cocoa to give rise to a new product (sugar or 
chocolate) and those that begin with sugar and chocolate and process 
these further.
    The Preserved Fruit, Vegetable and Specialty Manufacturing industry 
group includes two types of establishments: those that freeze food and 
those that combine preservation processes such as pickling, canning, 
dehydrating and so forth. Both types begin their productive process 
with inputs of vegetable or animal origin.
    The establishments that manufacture dairy products and meat 
products are defined by the inputs used: milk and meat, respectively.
    Industry group, Bakeries and Tortilleries have a common 
denominator, the kneading and cooking process that takes place in ovens 
or flat earthenware pans. In this industry group is the nixtamal mill.
    The industry group Miscellaneous Food Manufacturing includes 
industries with different productive processes such as snack food 
manufacturing; coffee and tea manufacturing; concentrate, syrup, 
condiment, and spice manufacturing; and in general an 

[[Page 4545]]
entire range of other miscellaneous products.
    The Beverage and Tobacco Product Manufacturing subsector has two 
industry groups. The first one, Beverage Manufacturing, includes three 
types of establishments: those that manufacture non-alcoholic 
beverages; those that manufacture alcoholic beverages through the 
fermentation process; and those that produce distilled alcoholic 
beverages. Ice manufacturing, while not a beverage, is included with 
non-alcoholic beverage manufacturing because it is the same production 
process as water purification.
    In the case of activities related to the manufacture of beverages, 
the structure follows the defined productive processes. Brandy, a 
distilled beverage, was not placed under distillery product 
manufacturing, but rather under the NAICS class for winery product 
manufacturing since the productive process used in the manufacturing of 
alcoholic grape-based beverages, produces both wines (fermented 
beverage) and brandies (distilled beverage).
    The second industry group, Tobacco Product Manufacturing, includes 
two types of establishments: those engaged in redrying and stemming 
tobacco and those that manufacture cigarettes and cigars.

Limitations and Constraints of the Classification

    There are a few factors that constrained the structure and detail 
of the classification in the area under consideration. In the Food 
Manufacturing subsector, most activities that were identified in one 
country exist in the others. However, the way activities are combined 
in establishments differs to some extent in the different countries. 
For example, in Canada and the United States, corn oil is produced in 
the same establishments that manufacture corn starch and corn 
sweeteners. In Mexico, corn oil is produced in specialized 
establishments. All of the establishments that produce these products 
along with those producing other vegetable fats and oils, are combined 
into one NAICS industry, Starch and Vegetable Fats and Oils 
Manufacturing. Each country will publish additional categories that 
comprise sub-divisions of NAICS industries to present data for 
activities that are nationally significant.
    For those users requiring detailed commodity information, each 
country will publish information on products of these industries. 
Efforts are also underway to harmonize the commodity classifications to 
allow comparability of these statistics.

Relationship of ISIC

    Most 4-digit NAICS industries in these subsectors are contained 
within Division 15, Manufacture of Food Products, of the current 
International Standard Industrial Classification of all Economic 
Activities (ISIC, Revision 3) of the United Nations. The following 
NAICS industry cannot be assigned to an ISIC division. Wineries that 
grow their own grapes and then manufacture wine are classified in ISIC 
as an agriculture activity and in NAICS as a manufacturing activity.

Some Changes to the National Classifications

    A significant change for all three countries is the inclusion of 
malt manufacturing in the NAICS industry Flour Milling and Malt 
Manufacturing. Malt was formerly included in the beer manufacturing 
industry in Mexico and the United States and in Miscellaneous 
Manufacturing in Canada, but was moved to the flour milling and malt 
manufacturing NAICS industry because the production process used to 
manufacture malt is similar to that of the flour milling industry.
    Grouping the production of starches and vegetable fats and oils in 
a single class also is a significant change for all three countries. In 
Canada and the United States, corn oil is produced in the same 
establishments that produce starch products, while in Mexico, corn oil 
is produced in establishments that manufacture vegetable fats and oils. 
Thus, the difference in the production processes across the three 
countries necessitated this grouping.
    The creation of two industries for chocolate and confectionary 
products made from cocoa beans and confectionery made from purchased 
chocolate is a change for Canada since these industries were previously 
combined. The NAICS industry Non-Chocolate Confectionery Manufacturing 
is new for all three countries, and includes chewing gum.
    Other Miscellaneous Food Manufacturing includes the preparation of 
food to be consumed fresh (e.g., salads, sandwiches, etc. that are sold 
for immediate or almost immediate consumption). It is characterized by 
the preparation of food in volume that the manufacturer sells to a 
specialized establishment that sells it either through a service or a 
retail establishment. It is not specifically defined in the existing 
classification systems of the three countries.
    The inclusion of bakeries that prepare the dough, bake the bread, 
and sell on the premises in manufacturing is a major change for Canada 
and the United States. These establishments formerly were included in 
the retail sector in both countries. The manufacture of ice, an 
activity that up to now had been considered by the three countries to 
be part of food, has been transferred to beverage manufacturing.
    The grouping of Beverage and Tobacco Manufacturing into a subsector 
represents a major restructuring for all three countries. In Canada, 
the current two-digit groups for Beverages (CSIC 10, 11) and Tobacco 
(CSIC 12) have been combined in one NAICS subsector, Beverage and 
Tobacco Product Manufacturing. For Mexico, the current subsector Food 
Products, Beverages, and Tobacco has been split into two subsectors. In 
the United States, tobacco is a separate two-digit major group (Major 
Group 21, Tobacco Products) while beverages is a three-digit industry 
group, (Industry Group 208, Beverages).

Achievement of Objectives

    The classification meets the objectives for the North American 
Industry Classification System (NAICS). It is comprised of industries 
that group establishments with similar production processes, that is, 
it applies the production-oriented economic concept. In the main, the 
hierarchical structure of the classification also follows the 
production concept.
    The classification achieves comparability for the three 
participating countries. Based on existing data, all three countries 
expect to be able to publish data regularly at the industry (4-digit) 
level of the structure. All countries agree on the detailed definitions 
of the industries.
    The classification improves comparability with other countries. 
Most industries are compatible with the two-digit level of the current 
International Standard Industrial Classification of all Economic 
Activities (ISIC, Revision 3) of the United Nations. This means that 
each comparable NAICS industry is the same as, or part of, a single 
ISIC two-digit Division.
    Other objectives of the NAICS project are not as relevant in this 
area of the classification as in others. These objectives are the 
delineation of new and emerging industries, service industries and 
industries engaged in the production of advanced technologies. The 
industrial sector in question is relatively mature, generally produces 
goods, and employs relatively stable technology. Therefore, the 
emphasis was on the objectives listed above. 

[[Page 4546]]

    The industries have high specialization ratios, and with the 
exception of tortillas in Canada, they are economically significant. 
The detail (4-digit) and structure of the classification are balanced 
in size. This enhances the classification's suitability for sampling 
and other aspects of survey operations. Finally, disruptions to time 
series, while they exist, have been minimized. Most of the changes to 
existing classifications are marginal. The major changes are well-
identified and can be taken into account in linking time series.

Section B-Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the two 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 two 
NAICS industry subsectors covered in Part I of this notice. For cases 
where no 5-digit detail is shown, the ECPC is proposing that NAICS 4-
digit industries will also represent the most detailed U.S. industries.

                                                    Table 1.                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                     1997 NAICS and US Description     Status code      SIC           1987 SIC Description      
                                                                        code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Food Manufacturing:            ................  .......  .................................
XXX................    Animal Food Manufacturing:   ................  .......  .................................
XXXX...............     Animal Food Manufacturing:  ................  .......  .................................
XXXXX..............      Dog and Cat Food           E                    2047  Dog and Cat Food.                
                          Manufacturing.                                                                        
XXXXX..............      Other Animal Food          R                   *2048  Prepared Feeds, NEC (Except      
                          Manufacturing.                                        Slaughtering Animals for Pet    
                                                                                Food).                          
XXX................    Grain and Oilseed Milling:.                                                              
XXXX...............     Flour Milling and Malt      ................  .......  .................................
                         Manufacturing.                                                                         
XXXXX..............     Flour Milling.............  R                   *2034  Dehydrated Fruits, Vegetables and
                                                                                Soups (Vegetable Flour).        
                                                                         2041  Flour and Other Grain Mill       
                                                                                Products.                       
XXXXX..............     Rice Milling..............  E                    2044  Rice Milling.                    
XXXXX..............     Malt Manufacturing........  E                    2083  Malt.                            
XXXX...............    Starch and Vegetable Fats                                                                
                        and Oils Manufacturing:                                                                 
XXXXX..............     Soybean Processing........  E                    2075  Soybean Oil Mills.               
XXXXX..............     Wet Corn Milling..........  E                    2046  Wet Corn Milling.                
XXXXX..............     Other Oilseed Processing..  N                    2074  Cottonseed Oil Mills.            
                     .............................  ................     2076  Vegetable Oil Mills, NEC.        
XXXXX..............     Edible Fats and Oils        R                   *2077  Animal and Marine Fat and Oil    
                         Manufacturing.                                         (Vegetable Oil Foods).          
                     .............................  ................     2079  Edible Fat and Oil, NEC.         
XXXX...............    Breakfast Cereal             E                   *2043  Cereal Breakfast Foods (Breakfast
                        Manufacturing.                                          Cereal).                        
XXX................  Sugar and Confectionery                                                                    
                      Product Manufacturing:                                                                    
XXXX...............    Sugar Manufacturing:                                                                     
XXXXX..............     Sugarcane Mills...........  E                    2061  Raw Cane Sugar.                  
XXXXX..............     Cane Sugar Refining.......  E                    2062  Cane Sugar Refining.             
XXXXX..............     Beet Sugar Manufacturing..  E                    2063  Beet Sugar.                      
XXXX...............    Chocolate and Confectionery  E                    2066  Chocolate and Cocoa Products.    
                        Manufacturing from Cocoa                                                                
                        Beans.                                                                                  
XXXX...............    Confectionery Manufacturing  N                   *2064  Candy and Other Confectionery    
                        from Purchased Chocolate.                               Products (Chocolate             
                                                                                Confectionery).                 
XXXX...............    Non-Chocolate Confectionery  N                   *2064  Candy and Other Confectionery    
                        Manufacturing.                                          Products (Non-Chocolate         
                                                                                Confectionary).                 
                                                    ................     2067  Chewing Gum.                     
                                                    ................    *2099  Food Preparations, NEC           
                                                                                (Marshmallow Creme).            
XXX................  Preserved Fruit, Vegetable,                                                                
                      and Specialty Manufacturing:                                                              
XXXX...............    Frozen Food Processing:                                                                  
XXXXX..............     Frozen Fruit, Juice, and    E                    2037  Frozen Fruits and Vegetables.    
                         Vegetable Processing.                                                                  
XXXXX..............     Frozen Specialty            E                    2038  Frozen Specialties, NEC.         
                         Processing.                                                                            
XXXX...............    Canning, Pickling, and                                                                   
                        Drying:                                                                                 
XXXXX..............     Fruit and Vegetable         R                    2033  Canned Fruits and Vegetables.    
                         Canning.                                                                               
                     .............................  ................    *2035  Sauces, and Salad Dressings      
                                                                                (Pickled Fruits and Vegetables).
XXXXX..............     Specialty Canning.........  R                   *2032  Canned Specialties (Except Canned
                                                                                Puddings).                      
XXXXX..............     Dried and Dehydrated Food   R                    2034  Dried and Dehydrated Fruits,     
                         Manufacturing.                                         Vegetables and Soups (Except    
                                                                                Vegetable Flour).               
                                                    ................    *2099  Food Preparation, NEC (Bouillon).
XXX................  Dairy Product Manufacturing:                                                               
XXXX...............    Dairy Product, Except                                                                    
                        Frozen Dairy Product                                                                    
                        Manufacturing:                                                                          
XXXXX..............     Fluid Milk Manufacturing..  E                    2026  Fluid Milk.                      
XXXXX..............     Creamery Butter             E                    2021  Creamery Butter.                 
                         Manufacturing.                                                                         
XXXXX..............     Cheese Manufacturing......  E                    2022  Cheese, Natural and Processed.   

[[Page 4547]]
                                                                                                                
XXXXX..............     Dry, Condensed, and         E                    2023  Dry, Condensed and Evaporated    
                         Evaporated Milk                                        Products.                       
                         Manufacturing.                                                                         
XXXX...............    Ice Cream and Frozen         E                    2024  Ice Cream and Frozen Desserts.   
                        Dessert Manufacturing.                                                                  
XXX................  Meat and Seafood Product                                                                   
                      Manufacturing:                                                                            
XXXX...............    Animal Slaughtering:                                                                     
XXXXX..............    Animal Slaughtering and      R                   *0751  Livestock Services, Except       
                        Processing.                                             Veterinary (Custom              
                                                                                Slaughtering).                  
                     .............................  ................     2011  Meat Packing Plants.             
                     .............................  ................    *2048  Prepared Foods, NEC (Animal      
                                                                                Slaughtering for Pet Food).     
XXXXX..............     Meat Processed From         ................    *2013  Sausage and Other Prepared Meats 
                         Purchased Carcasses.                                   (Meat Processing).              
                                                    ................    *5147  Meat and Meat Products (Boxed    
                                                                                Beef).                          
XXXXX..............     Poultry Processing........  R                   *2015  Poultry Processing (Poultry      
                                                                                Processing).                    
XXXXX..............     Rendering and Meat By-      N                   *2013  Sausage and Other Prepared Meats 
                         product Processing.                                    (Lard).                         
                     .............................  ................    *2077  Animal and Marine Fats and Oils  
                                                                                (Animal Fat and Oil).           
XXXX...............    Seafood Product Preparation                                                              
                        and Packaging:                                                                          
XXXXX..............     Seafood Canning...........  R                   *2077  Animal and Marine Fats and Oils  
                                                                         2091   (Canned Marine Fat and Oil).    
                                                                               Canned and Cured Fish and        
                                                                                Seafood.                        
XXXXX..............     Fresh and Frozen Seafood    R                   *2077  Animal and Marine Fats and Oils  
                         Processing.                                            (Fresh and Frozen Marine Fats   
                                                                                and Oil).                       
                     .............................  ................     2092  Fresh or Frozen Prepared Fish.   
XXX................  Bakeries and Tortilleries:                                                                 
XXXX...............    Bread and Bakery Product                                                                 
                        Manufacturing:                                                                          
XXXXX..............     Commercial Bakeries.......  R                    2051  Bread, Cake, and Related         
                                                                                Products.                       
                     .............................  ................    *2052  Cookies and Crackers (Unleavened 
                                                                                Bread).                         
XXXXX..............     Retail Bakeries...........  N                   *5461  Retail Bakeries (Bread, Cake and 
                                                                                Related Products Baked and Sold 
                                                                                on Premise).                    
XXXXX..............     Frozen Bakery Product       E                    2053  Frozen Bakery Products.          
                         Manufacturing.                                                                         
XXXX...............  Cookie, Cracker, and Pasta                                                                 
                      Manufacturing:                                                                            
XXXXX..............     Cookie and Cracker          R                   *2052  Cookies and Crackers (Cookies and
                         Manufacturing.                                         Crackers).                      
XXXXX..............     Flour Mixes and Dough from  E                    2045  Prepared Flour Mixes and Doughs. 
                         Purchased Flour                                                                        
                         Manufacturing.                                                                         
XXXXX..............     Pasta Manufacturing.......  E                    2098  Macaroni and Spaghetti.          
XXXX...............    Tortilleries...............  N                   *2099  Food Preparations, NEC           
                                                                                (Tortillas).                    
XXX................  Miscellaneous Food                                                                         
                      Manufacturing:                                                                            
XXXX...............    Snack Food Manufacturing:                                                                
XXXXX..............     Roasted Nuts and Peanut     R                    2068  Salted and Roasted Nuts and      
                         Butter Manufacturing.                                  Seeds.                          
XXXXX..............  Other Snack Food                                                                           
                      Manufacturing:                                                                            
                                                                        *2099  Food Preparations, NEC (Peanut   
                                                                                Butter).                        
                                                    R                   *2052  Cookies and Crackers (Pretzels). 
                                                    ................     2096  Potato Chips and Similar Product.
XXXX...............    Coffee and Tea               N                   *2043  Cereal Breakfast Foods (Coffee   
                        Manufacturing.                                          Substitute).                    
                                                    ................    *2095  Roasted Coffee (Roasted Coffee). 
                                                    ................    *2099  Food Preparations, NEC (Tea).    
XXXX...............    Flavoring Syrup and          R                   *2087  Flavoring Extracts and Syrups    
                        Concentrate Manufacturing.                              (Flavoring Syrup and            
                                                                                Concentrate).                   
XXXX...............    Seasoning and Dressing                                                                   
                        Manufacturing:                                                                          
XXXXX..............     Mayonnaise, Dressing, and   N                   *2035  Pickles, Sauces and Salad        
                         Other Prepared Sauce                                   Dressings (Sauces and Salad     
                         Manufacturing.                                         Dressing).                      
                                                    ................    *2099  Food Preparations, NEC (Vinegar).
XXXXX..............     Spice and Extract           N                   *2087  Flavoring Extracts and Syrups    
                         Manufacturing.                                         (Flavoring Extracts).           
                                                    ................    *2095  Roasted Coffee (Coffee Extracts).
                                                    ................    *2099  Food Preparations, NEC (Spices,  
                                                                                Dip Mix, Salad Dressing Mix, and
                                                                                Seasoning Mix).                 
                                                    ................    *2899  Chemical Preparations, NEC       
                                                                                (Salt).                         
XXXX...............  Other Miscellaneous Food                                                                   
                      Manufacturing:                                                                            
XXXXX..............     Perishable Prepared Food    N                   *2099  Food Preparations, NEC           
                         Manufacturing.                                         (Perishable Prepared Food).     
XXXXX..............     All Other Miscellaneous     R                   *2015  Poultry and Egg Processing (Egg  
                         Food Manufacturing.                                    Processing).                    
                                                    ................    *2032  Canned Specialties (Canned       
                                                                                Pudding).                       
                                                    ................    *2087  Flavoring Extracts and Syrups    
                                                                                (Powered Drink Mix).            
                                                    ................    *2099  Food Preparations, NEC (Except   
                                                                                Marshmallow Cream, Peanut       
                                                                                Butter, Perishable Prepared     
                                                                                Foods, Tortillas, Tea and       
                                                                                Vinegar).                       
XX.................  Beverage and Tobacco Product                                                               
                      Manufacturing:                                                                            
XXXX...............     Soft Drink and Ice                                                                      
                         Manufacturing:                                                                         
XXXXX..............      Soft Drink Manufacturing.  R                   *2086  Bottled and Canned Soft Drinks   
                                                                                (Except Purified Water).        
XXXXX..............      Ice Manufacturing and      N                    2097  Manufactured Ice.                
                          Water Purification.                                                                   
                                                    *2086                      Bottled and Canned Soft Drinks   
                                                                                (Purified Water).               
XXXX...............     Breweries.................  E                    2082  Malt Beverages.                  
XXXX...............     Wineries..................  E                    2084  Wines, Brandy, and Brandy        
                                                                                Spirits.                        

[[Page 4548]]
                                                                                                                
XXXX...............     Distilleries..............  R                    2085  Distilled Spirits.               
                                                    ................    *2869  Industrial Organic Chemicals     
                                                                                (Potable Ethyl Alcohol).        
XXXX...............     Tobacco Stemming and        R                   *2141  Tobacco Stemming and Redrying    
                         Redrying.                                              (Redrying and Stemming).        
XXXX...............     Tobacco Product                                                                         
                         Manufacturing:                                                                         
XXXXX..............      Cigarette Manufacturing..  E                    2111  Cigarette, Including Non-tobacco 
                                                                                Cigarettes.                     
XXXXX..............      Other Tobacco Product      N                    2121  Cigars.                          
                          Manufacturing.                                                                        
                                                                         2131  Chewing and Smoking Tobacco.     
                                                                        *2141  Tobacco Stemming and Redrying    
                                                                                (Reconstituted Tobacco).        
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows E=existing industry, N=new industry, R=revised industry; and *   
  means ``part of.'' The abbreviation NEC is used for Not Elsewhere Classified.                                 



                                Table 2.                                
------------------------------------------------------------------------
                                     1987 SIC                           
         1987 SIC code             description     1997 U.S. description
------------------------------------------------------------------------
2011..........................  Meat Packing       Animal Slaughtering. 
                                 Plants.                                
2013@.........................  Sausages and                            
                                 Other Prepared                         
                                 Meats:                                 
                                  Meat Processing  Meat Processed From  
                                                    Purchased Carcasses.
                                  Lard...........  Rendering and Meat By-
                                                    product Processing  
                                                    (pt).               
2015@.........................  Poultry                                 
                                 Slaughtering and                       
                                 Processing:                            
                                  Poultry          Poultry Processing.  
                                   Processing.                          
                                  Egg Processing.  All Other            
                                                    Miscellaneous Food  
                                                    Manufacturing (pt). 
2021..........................  Creamery Butter..  Creamery Butter      
                                                    Manufacturing.      
2022..........................  Cheese, Natural    Cheese Manufacturing.
                                 and Processed.                         
2023..........................  Dry, Condensed,    Dry, Condensed, and  
                                 and Evaporated     Evaporated Milk     
                                 Products.          Manufacturing.      
2024..........................  Ice Cream and      Ice Cream and Frozen 
                                 Frozen Desserts.   Dessert             
                                                    Manufacturing.      
2026..........................  Fluid Milk.......  Fluid Milk           
                                                    Manufacturing.      
2032..........................  Canned                                  
                                 Specialties:                           
                                  Canned           Specialty Canning    
                                   Specialty.       (pt).               
                                Canned Pudding...  All Other            
                                                    Miscellaneous Food  
                                                    Manufacturing (pt). 
2033@.........................  Canned Fruits and  Fruit and Vegetable  
                                 Vegetables.        Canning (pt).       
2034..........................  Dehydrated                              
                                 Fruits,                                
                                 Vegetables, and                        
                                 Soup:                                  
                                  Dried and        Dried and Dehydrated 
                                   Dehydrated       Food Manufacturing  
                                   Fruit,           (pt).               
                                   Vegetable, and                       
                                   Soup Mix.                            
                                  Vegetable        Flour Milling (pt).  
                                   Flours.                              
2035..........................  Pickles, Sauces                         
                                 and Salad                              
                                 Dressings:                             
                                  Pickled Fruit    Fruit and Vegetable  
                                   and Vegetable.   Canning.            
                                  Sauce and Salad  Mayonnaise, Dressing,
                                   Dressing.        and Other Prepared  
                                                    Sauce Manufacturing.
2037..........................  Frozen Fruits,     Frozen Fruit, Juice, 
                                 and Vegetables.    and Vegetable       
                                                    Processing.         
2038..........................  Frozen             Frozen Specialty     
                                 Specialties, NEC.  Processing.         
2041..........................  Flour and Other    Flour Milling (pt).  
                                 Grain Mill                             
                                 Products.                              
2043..........................  Cereal Breakfast                        
                                 Foods:                                 
                                  Coffee           Coffee and Tea       
                                   Substitute.      Manufacturing (pt). 
                                  Breakfast        Breakfast Cereal     
                                   Cereal.          Manufacturing.      
2044..........................  Rice Milling.....  Rice Milling.        
2045..........................  Prepared Flour     Flour Mixes and Dough
                                 Mixes and Doughs.  Manufacturing from  
                                                    Purchased Flour.    
2046..........................  Wet Corn Milling.  Wet Corn Milling.    
2047..........................  Dog and Cat Food.  Dog and Cat Food     
                                                    Manufacturing.      
2048..........................  Prepared Feed,                          
                                 NEC:                                   
                                  Animal           Animal Slaughtering  
                                   Slaughtering,    (pt).               
                                   for Pet Food.                        
                                  Except           Other Animal Food    
                                   Slaughtering     Manufacturing.      
                                   Animals for                          
                                   Pet Food.                            
2051..........................  Bread, Cakes and   Commercial Bakeries  
                                 Related Products.  (pt).               
2052@.........................  Cookies and                             
                                 Crackers:                              
                                  Cookie and       Cookie and Cracker   
                                   Cracker.         Manufacturing.      
                                  Pretzels.......  Other Snack Food     
                                                    Manufacturing (pt). 
                                  Unleavened       Commercial Bakeries  
                                   Bread.           (pt).               
2053..........................  Frozen Bakery      Frozen Bakery Product
                                 Products, Except   Manufacturing.      
                                 Bread.                                 
2061..........................  Raw Cane Sugar...  Sugarcane Mills.     
2062..........................  Cane Sugar         Cane Sugar Refining. 
                                 Refining.                              
2063..........................  Beet Sugar.......  Beet Sugar           
                                                    Manufacturing.      
2064@.........................  Candy and Other                         
                                 Confectionery                          
                                 Products:                              
                                  Chocolate        Chocolate and        
                                   Confectionery.   Confectionery       
                                                    Manufacturing from  
                                                    Purchased Chocolate.
                                  Non-Chocolate    Non-Chocolate        
                                   Confectionery    Confectionary       
                                   Manufacturing.   Manufacturing (pt). 
2066..........................  Chocolate and      Chocolate and        
                                 Cocoa Products.    Confectionery       
                                                    Manufacturing from  
                                                    Cocoa Beans.        
2067@.........................  Chewing Gum......  Chewing Gum and Other
                                                    Non-Chocolate       
                                                    Confectionery       
                                                    Product             
                                                    Manufacturing (pt). 

[[Page 4549]]
                                                                        
2068@.........................  Salted and         Roasted Nuts and     
                                 Roasted Nuts and   Peanut Butter       
                                 Seeds.             Manufacturing (pt). 
2074@.........................  Cottonseed Oil     Other Oilseed        
                                 Mills.             Processing (pt).    
2075..........................  Soybean Oil Mills  Soybean Processing.  
2076@.........................  Vegetable Oil      Other Oilseed        
                                 Mills, NEC.        Processing (pt).    
2077@.........................  Animal and Marine                       
                                 Fats and Oils:                         
                                  Animal Fat and   Rendering and Meat By-
                                   Oil.             product Processing  
                                                    (pt).               
                                  Canned Marine    Seafood Canning (pt).
                                   Fat and Oil.                         
                                  Fresh and        Fresh and Frozen     
                                   Frozen Marine    Seafood Processing  
                                   Fat and Oil.     (pt).               
                                  Vegetable Oil    Edible Fats and Oils 
                                   Foot.            Manufacturing (pt). 
2079..........................  Edible Fat and     Edible Fats and Oils 
                                 Oil, NEC.          Manufacturing (pt). 
2082..........................  Malt Beverages...  Breweries.           
2083..........................  Malt.............  Malt Manufacturing.  
2084..........................  Wines, Brandy,     Wineries.            
                                 and Brandy                             
                                 Spirits.                               
2085..........................  Distilled and      Distilleries.        
                                 Blended Liquors.                       
2086..........................  Bottled and                             
                                 Canned Soft                            
                                 Drinks:                                
                                  Soft Drinks....  Soft Drink           
                                                    Manufacturing.      
                                  Purified Water.  Ice Manufacturing and
                                                    Water Purification  
                                                    (pt).               
2087@.........................  Flavoring                               
                                 Extracts and                           
                                 Syrups NEC:                            
                                  Flavoring Syrup  Flavoring Syrup and  
                                   and              Concentrate         
                                   Concentrate.     Manufacturing.      
                                  Flavoring        Spice and Extract    
                                   Extracts.        Manufacturing (pt). 
                                  Powered Drink    All Other            
                                   Mix.             Miscellaneous Food  
                                                    Product             
                                                    Manufacturing (pt). 
2091@.........................  Canned and Cured   Seafood Canning (pt).
                                 Fish and Seafood.                      
2092@.........................  Fresh or Frozen    Fresh and Frozen     
                                 Prepared Fish.     Seafood Processing  
                                                    (pt).               
2095@.........................  Roasted Coffee:                         
                                  Roasted Coffee.  Coffee and Tea       
                                                    Manufacturing (pt). 
                                  Coffee Extracts  Spice and Extract    
                                                    Manufacturing (pt). 
2096@.........................  Potato Chips, and  Other Snack Food     
                                 Similar Snacks.    Manufacturing (pt). 
2097..........................  Manufactured Ice.  Ice Manufacturing and
                                                    Water Purification  
                                                    (pt).               
2098..........................  Macaroni and       Pasta Manufacturing. 
                                 Spaghetti.                             
2099..........................  Food                                    
                                 Preparations,                          
                                 NEC:                                   
                                  Bouillon.......  Dried and Dehydrated 
                                                    Food Manufacturing. 
                                  Marshmallow      Non-Chocolate        
                                   Creme.           Confectionery       
                                                    Manufacturing (pt). 
                                  Peanut Butter..  Roasted Nuts and     
                                                    Peanut Butter       
                                                    Manufacturing (pt). 
                                  Perishable       Perishable Prepared  
                                   Prepared Food.   Food Manufacturing. 
                                  Tortillas......  Tortilleries.        
                                  Tea............  Coffee and Tea       
                                                    Manufacturing (pt). 
                                  Vinegar........  Mayonnaise, Dressing,
                                                    and Other Prepared  
                                                    Sauce Manufacturing 
                                                    (pt).               
                                  Other..........  All Other            
                                                    Miscellaneous Food  
                                                    Manufacturing (pt). 
2111..........................  Cigarettes.......  Cigarette            
                                                    Manufacturing.      
2121..........................  Cigars...........  Other Tobacco Product
                                                    Manufacturing (pt). 
2131@.........................  Chewing and        Other Tobacco Product
                                 Smoking Tobacco.   Manufacturing (pt). 
2141@.........................  Tobacco Stemming                        
                                 and Redrying:                          
                                  Reconstituted    Other Tobacco Product
                                   Tobacco.         Manufacturing (pt). 
                                  Redrying and     Tobacco Redrying and 
                                   Stemming.        Stemming.           
------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of''; @ means time series break has
  been created that is greater than 3% of the 1992 value of shipments   
  for the 1987 SIC industry. The abbreviation NEC is used for Not       
  Elsewhere Classified.                                                 



Description of Changes to the U.S. System

    A number of the changes listed in this section were made for 
reasons of international comparability. Where one or more of the three 
North American countries had different definitions of an industry 
classification, adjustments to the definitions in one or more countries 
were required. In constructing NAICS, the three countries agreed to 
move, where change was required to attain international comparability, 
in the direction of the country or countries whose existing 
classification definitions most closely corresponded to the production-
oriented concept adopted for NAICS. Cases where the U.S. changed are 
listed below; other cases where Canada or Mexico moved toward the U.S. 
classification are not, of course, listed in this section.
    Structure--The 1987 Major Groups 20, Food and Kindred Products, and 
21, Tobacco Products, were reorganized to create two new subsectors. 
Beverages were separated from food and combined with tobacco. A number 
of activities that were included in 1987 Industry Group 208, Beverages, 
were retained in the Food Manufacturing subsector:
    Malt manufacturing from 1987 industry group 208. This was done to 
promote comparability with ISIC and because malt production is a 
milling operation, not a beverage operation.
    Flavoring syrup and concentrate manufacturing from part of 1987 SIC 
2087, Flavoring Extracts and Syrups, NEC, to improve comparability with 
Mexico.
    Flavoring extracts from part of 1987 SIC 2087, Flavoring Extracts 
and Syrups, to create a new 1997 industry for spices and extracts. This 
is consistent with Canada and ISIC.
    Powdered drink mixes from part of 1987 SIC 2087, Flavoring Extracts 
and Syrups, into part of All Other Miscellaneous Food Manufacturing to 
improve comparability with Canada.
    Manufactured ice was previously part of 1987 industry group 209, 
Miscellaneous Food Preparations and Kindred Products. NAICS includes 
this in Beverage Manufacturing.
    Food Manufacturing--Ten new industries were added to the 1997 

[[Page 4550]]
    industry structure for this subsector. New industries were created for:
    Other Oilseed Processing by combining 1987 SIC 2074, Cottonseed Oil 
Mills, and 1987 SIC 2076, Vegetable Oil Mills, NEC. Cottonseed 
processing is very small and the production function is identical 
except for the inputs used.
    Confectionery Manufacturing from Purchased Chocolate from part of 
1987 SIC 2064, Candy and Other Confectionery Products, to promote 
comparability with Mexico. This industry also is characterized by the 
production process as chocolate as an input to confectionery is unique 
and is distinguished by process.
    Non-Chocolate Confectionery Manufacturing from parts of 1987 SIC 
2064, Candy and Other Confectionery Products; 1987 SIC 2067, Chewing 
Gum; and 1987 SIC 2099, Food Preparations, NEC. Chewing gum is a 
disclosure in the U.S. and is too small in Canada.
    Rendering and Meat By-product Processing from parts of 1987 SIC 
2013, Sausage and Other Prepared Meats, and 1987 SIC 2077, Animal and 
Marine Fats and Oils, since there are specialized processes involved 
and they tend to be performed in separate establishments. This proposal 
is supported by The National Renderer's Association.
    Tortilleries from part of 1987 SIC 2099, Food Preparations, NEC, in 
response to a proposal from the industry association and to promote 
comparability with Mexico.
    Coffee and Tea Manufacturing from parts of 1987 SIC 2043, Cereal 
Breakfast Foods; 1987 SIC 2095, Roasted Coffee; 1987 SIC 2099, Food 
Preparations, NEC, to promote comparability with Canada.
    Mayonnaise, Dressing and Other Prepared Sauce Manufacturing from 
parts of 1987 SIC 2035, Pickles, Sauces and Salad Dressings, and 1987 
SIC 2099, Food Preparations, NEC, to promote comparability with Mexico. 
The U.S. found a good production basis and more than sufficient data 
user interest for this change.
    Spice and Extract Manufacturing from parts of 1987 SIC 2087, 
Flavoring Extracts and Syrups; 1987 SIC 2095, Roasted Coffee; 1987 SIC 
2099, Food Preparations, NEC; and 1987 SIC 2899, Chemical Preparations, 
NEC resulted from a modification of a proposal to create a spice 
industry. There is considerable overlap between the production of 
extracts and spices. Spice production alone produced a low 
specialization rate (75%), but the combined industry exhibits good 
specialization (91%).
    Retail Bakeries from part of 1987 SIC 5461, Retail Bakeries, to 
obtain comparability with Mexico. A new industry was created since 
their production function is different than that of a commercial bakery 
and in order to retain time series continuity.
    Perishable Prepared Food Manufacturing from part of 1987 SIC 2099, 
Food Preparations, NEC, to reduce the size of SIC 2099 and improve 
comparability with Mexico.
    Three activities were transferred into the 1997 Food Manufacturing 
subsector:
    Custom slaughtering was transferred from 1987 SIC 0751, Livestock 
Services, Except Veterinary, into Animal Slaughtering because the 
production process is slaughtering whether done on a production or 
custom basis, and in response to a proposal.
    Boxed beef from purchased carcasses was transferred from 1987 SIC 
5147, Meat and Meat Products, into Meat Processed From Purchased 
Carcasses to improve comparability with Canada. The production function 
of these establishments is much more a manufacturing type operation, in 
that they are very large, highly automated plants that produce bulk 
products that must still be further broken down before they are ready 
for sale to the final consumer.
    Salt was transferred from part of 1987 SIC 2899, Chemical 
Preparations, NEC, into Spice and Extract Manufacturing to promote 
comparability with Mexico.
    Also there were several activities that transferred within the Food 
Manufacturing subsector. The number of food manufacturing except 
beverages manufacturing industries increased from 43 in 1987 to 47 in 
1997. For time series linkage, 26 of the 43 1987 industries are 
comparable within three percent of the 1997 industries.
    Beverage and Tobacco Product Manufacturing--Two new industries were 
created for this subsector.
    Ice Manufacturing and Water Purification from 1987 SIC 2097, 
Manufactured Ice, and part of 1987 SIC 2086, Bottled and Canned Soft 
Drinks, to promote comparability with Mexico.
    Other Tobacco Product Manufacturing by combining 1987 SIC 2121, 
Cigars; 1987 SIC 2131, Chewing and Smoking Tobacco; and Reconstituted 
Tobacco from part of 1987 SIC 2141, Tobacco Stemming and Redrying.
    One activity transferred into the Beverage and Tobacco Product 
Manufacturing subsector: Potable ethyl alcohol was transferred from 
part of 1987 SIC 2069, Industrial Organic Chemicals, into NAICS 
Distilleries to promote comparability with Canada.
    The number of beverage and tobacco product industries decreased 
from ten in 1987 to eight in 1997. For time series linkage, five of the 
ten 1987 beverage and tobacco product manufacturing industries are 
comparable within three percent of the 1997 industries.

Part IV--Proposed New Industry Structure for Fabricated Metal Product 
Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 7

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

Fabricated Metal Product Manufacturing

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held August 30, 1995--September 1, 1995 in 
Washington, D.C.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........     9/1/95
Mexico..............................  /S/ Enrique Ordaz......     9/1/95
United States.......................  /S/ Jack E. Triplett...     9/1/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Fabricated Metal Product Manufacturing
XXX  Forging and Stamping
XXXX  Forging and Stamping
XXX  Cutlery and Hand Tool Manufacturing
XXXX  Cutlery and Hand Tool Manufacturing
XXX  Architectural and Structural Metal Manufacturing
XXXX  Platework and Fabricated Structural Product Manufacturing
XXXX  Ornamental and Architectural Metal Product Manufacturing
XXX  Boiler, Tank, and Shipping Container Manufacturing
XXXX  Power Boiler and Heat Exchanger Manufacturing
XXXX  Metal Tank (Heavy Gauge) Manufacturing 

[[Page 4551]]

XXXX  Metal Can, Box, and Other Metal Container (Light Gauge) 
Manufacturing
XXX  Hardware Manufacturing
XXXX  Hardware Manufacturing
XXX  Spring, Wire and Turned Product Manufacturing
XXXX  Spring and Wire Product Manufacturing
XXXX  Turned Product Manufacturing
XXX  Other Fabricated Metal Product Manufacturing
XXXX  Metal Valve Manufacturing
XXXX  All Other Fabricated Metal Product Manufacturing
XXX  Machine Shops and Coating, Engraving, Heat Treating, and Allied 
Activities
XXXX  Machine Shops
XXXX  Coating, Engraving, Heat Treating, and Allied Activities

Attachment 2--North American Industry Classification System

    Draft Classification for:

Fabricated Metal Product Manufacturing

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industrial classification for these 
industries.
    This draft classification applies to the subsector Fabricated Metal 
Product Manufacturing. This subsector is further sub-divided into eight 
industry groups and fourteen industries. The subsector will be part of 
the Manufacturing sector of the classification.

A General Outline

    The Fabricated Metal Product Manufacturing industries transform 
metal into intermediate or end products, other than machinery, 
computers and electronics, and metal furniture. Some important 
fabricated metal processes are forging, stamping, bending, forming, and 
machining, which are used to shape individual pieces of metal. 
Processes such as welding and assembling are used to join separate 
parts together. Establishments may use one of these processes or they 
may be used in combination. The NAICS structure distinguishes the 
forging and stamping processes in a single industry. Other industries 
identify categories of products whose manufacture involves similar 
combinations of processes. For example, establishments in Platework and 
Fabricated Structural Product Manufacturing work with heavy gauge 
metal; those in Ornamental and Architectural Metal Product 
Manufacturing work with light gauge metal.
    NAICS makes a basic distinction between establishments that draw 
wire from bars or rods, and those that purchase wire and make products 
from it. The former are classified in the Primary Metal Manufacturing 
subsector and the latter either in the Fabricated Metal Product 
Manufacturing subsector; in Spring and Wire Product Manufacturing, if 
the products are not insulated; or if the product is insulated wire, 
the establishments are classified in the Electrical Equipment, 
Appliance, and Component Manufacturing subsector.

Limitations and Constraints of the Classification

    There are some analytical needs that cannot be met by the 
industrial classification. For example, relatively broad NAICS 
industries were created for Forging and Stamping; Ornamental and 
Architectural Metal Product Manufacturing; Metal Can, Box and Other 
Metal Container (Light Gauge) Manufacturing; and Spring, Wire and 
Turned Product Manufacturing. The way activities are combined in 
establishments differs to some extent in some countries. For example, 
forgings and stampings are often made in the same establishments in 
Mexico, while they are usually produced in separate establishments in 
Canada and the United States. More often, size constraints prohibit 
separation of activities in Canada or Mexico. In the Fabricated Metal 
Product Manufacturing subsector, most activities that were identified 
in one country exist in the others, but sometimes an activity is not 
economically significant to the same degree in all countries. For 
example, Canada cannot support a Precision Turned Product Manufacturing 
industry because of size.
    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. An 
operating rule has therefore been adopted for this industry subsector 
that the NAICS industries must be economically significant and 
publishable. Each country will publish additional categories that 
comprise sub-divisions of NAICS industries, to present data for 
activities that are nationally significant.
    For those users requiring detailed commodity information, each 
country will publish information on the products of these industries. 
Efforts are also underway to harmonize the commodity classifications to 
allow for greater comparability of these statistics.

Relationship to ISIC

    Eight industries can be assigned entirely to ISIC Division 28, 
Manufacture of Fabricated Metal Products, except Machinery and 
Equipment of the current International Standard Industrial 
Classification of all Economic Activities (ISIC, Revision 3) of the 
United Nations. The following NAICS industries belong largely to ISIC 
Division 28 with the exception of the activities indicated: Platework 
and Fabricated Structural Product Manufacturing (fabricated bar joists 
and concrete reinforcing bars); Power Boiler and Heat Exchanger 
Manufacturing (heat exchangers); Metal Valve Manufacturing (hose 
nozzles, rubber hose and tube assemblies, and metal pipe fittings); All 
Other Fabricated Metal Product Manufacturing (industrial patterns, and 
ball and roller bearings); Spring and Wire Product Manufacturing (wire 
carts and hand sieves); and Metal Tank (Heavy Gauge) Manufacturing (gas 
absorbers, autoclaves, buoys, and floating structures). However, 
because the exceptions indicated above are a relatively small part of 
the output of these six NAICS industries, one can combine the 
industries of NAICS for this subsector, and be quite comparable to ISIC 
28, Manufacture of Fabricated Metal Products, except Machinery and 
Equipment.

Some Changes to the National Classifications

    The Forging and Stamping industry represents a major restructuring 
for Canada. Non-ferrous forgings have been moved from the Primary 
Metals Major Group, and they are no longer split by type of metal such 
as aluminum or bronze. Stampings are brought together from two existing 
CSIC industries.
    The creation of the Hardware Manufacturing industry represents 
significant change for both Canada and Mexico. Their current 
classifications place hardware for transportation equipment in a 
variety of industries, based on the type of vehicle. All hardware, 
including locks, is combined in one industry in NAICS.
    Coating, Engraving, Heat Treating and Allied Activities in NAICS 
brings together all activities performed on metal, such as coating and 
heat treating. This is a significant change for Canada and Mexico, 
whose classifications only distinguish coating activities. For the 
United States, heat treating of metals is currently in Primary Metal 
Manufacturing.
    The creation of a Machine Shop industry is a change for all three 
countries that currently combine this activity with various others. 
Other changes for the United States involve the creation of several new 
national industries within the various NAICS industries. 

[[Page 4552]]


Achievement of Objectives

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

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. For cases 
where no 5-digit detail is shown, the ECPC is proposing that the NAICS 
4-digit industries will also represent the most detailed U.S. 
industries.

                                                    Table 1.                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC Description      
                              Description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................   Fabricated Metal Product      ................  .......  .................................
                      Manufacturing:                                                                            
XXX................    Forging and Stamping         ................  .......  .................................
XXXX...............     Forging and Stamping        ................  .......  .................................
XXXXX..............      Custom Roll Forming......  N                   *3449  Miscellaneous Structural Metal   
                                                                                Work (Custom Roll Forming).     
XXXXX..............      Iron and Steel Forging...  E                    3462  Iron and Steel Forgings.         
XXXXX..............      Nonferrous Forging.......  E                    3463  Nonferrous Forgings.             
XXXXX..............      Crown and Closure          E                    3466  Crowns and Closures.             
                          Manufacturing.                                                                        
XXXXX..............      Metal Stamping and Powder  N                   *3469  Metal Stampings, NEC (Except     
                          Metallurgy Manufacturing.                             Kitchen Utensils, and Pots and  
                                                                                Pans for Cooking).              
                                                    ................    *3499  Fabricated Metal Products, NEC   
                                                                                (Powder Metallurgy).            
XXX................  Cutlery and Hand Tool          ................  .......  .................................
                      Manufacturing:                                                                            
XXXX...............    Cutlery and Hand Tool        ................  .......  .................................
                        Manufacturing                                                                           
XXXXX..............     Cutlery and Flatware        N                    3421  Cutlery.                         
                         Manufacturing, except                                                                  
                         Precious                                                                               
                                                    ................    *3914  Silverware, Plated Ware, and     
                                                                                Stainless Steel Ware (Cutlery   
                                                                                and Flatware except Precious).  
XXXXX..............  Hand and Edge Tool             R                    3423  Hand and Edge Tools Except       
                      Manufacturing.                                            Machine Tools and Handsaws.     
                                                                        *3523  Farm Machinery and Equipment     
                                                                                (Hand Hair Clippers for         
                                                                                Animals).                       
                                                                        *3524  Lawn and Garden Tractors and Home
                                                                                Lawn and Garden Equipment       
                                                                                (Nonpowered Lawnmowers).        
                                                                        *3545  Cutting Tools, Machine Tools     
                                                                                Accessories, and Machinist      
                                                                                Precision Measuring Devices     
                                                                                (Precision Measuring Devices).  
                                                                        *3799  Transportation Equipment, NEC    
                                                                                (Wheelbarrows).                 
                                                                        *3999  Manufacturing Industries, NEC    
                                                                                (Tape Measures).                
XXXXX..............     Saw Blade and Handsaw       E                    3425  Saw Blades and Handsaws.         
                         Manufacturing.                                                                         
XXXXX..............     Kitchen Utensil, Pot and    N                   *3469  Metal Stampings, NEC (Kitchen    
                         Pan Manufacturing.                                     Utensils, Pots, and Pans for    
                                                                                Cooking).                       
XXX................  Architectural and Structural   ................  .......  .................................
                      Metal Manufacturing:                                                                      
XXXX...............    Platework and Fabricated     ................  .......  .................................
                        Structural Product                                                                      
                        Manufacturing                                                                           
XXXXX..............     Fabricated Structural       E                    3441  Fabricated Structural Metal.     
                         Metal Manufacturing.                                                                   
                                                                        *3449  Miscellaneous Structural Metal   
                                                                                Work (Fabricated Bar Joists and 
                                                                                Concrete Reinforcing Bars).     
XXXXX..............     Plate Work Manufacturing..  N                   *3443  Fabricated Plate Work (Boiler    
                                                                                Shops) (Fabricated Plate Work   
                                                                                and Metal Weldments).           
XXXXX..............     Prefabricated Metal         E                    3448  Prefabricated Metal Buildings and
                         Building and Component                                 Components.                     
                         Manufacturing.                                                                         
XXXX...............    Ornamental and               ................  .......  .................................
                        Architectural Metal                                                                     
                        Product Manufacturing                                                                   
XXXXX..............     Metal Door, Sash, Frame,    E                    3442  Metal Doors, Sash, Frames,       
                         Molding, and Trim                                      Molding and Trim.               
                         Manufacturing.                                                                         

[[Page 4553]]
                                                                                                                
                                                                        *3449  Miscellaneous Structural Metal   
                                                                                Work (Curtain Wall).            
XXXXX..............     Sheet Metal Work            R                   *3444  Sheet Metal Work (Ducts, Flumes, 
                         Manufacturing.                                         Flooring, Siding, Dampers,      
                                                                                etc.).                          
XXXXX..............     Ornamental and              R                    3446  Architectural and Ornamental     
                         Architectural Metal Work                               Metal Work.                     
                         Manufacturing.                                                                         
                                                                        *3449  Miscellaneous Structural Metal   
                                                                                Work (Metal Plaster Bases).     
                                                                        *3523  Farm Machinery and Equipment     
                                                                                (Corrals, Stalls, and Holding   
                                                                                Gates).                         
XXX................  Boiler, Tank, and Shipping     ................  .......  .................................
                      Container Manufacturing:                                                                  
XXXX...............     Power Boiler and Heat       N                   *3443  Fabricated Plate Work (Boiler    
                         Exchanger Manufacturing.                               Shops) (Power Boilers and Heat  
                                                                                Exchangers).                    
XXXX...............    Metal Tank Manufacturing     N                   *3443  Fabricated Plate Work (Boiler    
                        (Heavy Gauge).                                          Shops) (Heavy Gauge Tanks).     
XXXX...............    Metal Can, Box, and Other    ................  .......  .................................
                        Metal Container (Light                                                                  
                        Gauge) Manufacturing:                                                                   
XXXXX..............     Metal Can Manufacturing...  E                    3411  Metal Cans.                      
XXXXX..............     Other Metal Container       R                    3412  Metal Shipping Barrels, Drums,   
                         Manufacturing.                                         Kegs, and Pails.                
                                                                        *3429  Hardware, NEC (Vacuum and        
                                                                                Insulated Bottles, Jugs, and    
                                                                                Chests).                        
                                                                        *3444  Sheet Metal Work (Metal Bins and 
                                                                                Vats).                          
                                                                        *3499  Fabricated Metal Products, NEC   
                                                                                (Metal Boxes).                  
                                                                        *3537  Industrial Trucks, Tractors,     
                                                                                Trailers, and Stackers (Metal   
                                                                                Air Cargo Containers).          
                                                                        *5085  Industrial Supplies              
                                                                                (Reconditioning Drums).         
XXX................  Hardware Manufacturing:        ................  .......  .................................
XXXX...............    Hardware Manufacturing.....  R                   *3429  Hardware, NEC (Hardware, Except  
                                                                                Hose Nozzles, and Vacuum and    
                                                                                Insulated Bottles, Jugs and     
                                                                                Chests).                        
                                                                        *3499  Fabricated Metal Products, NEC   
                                                                                (Safe and Vault Locks).         
XXX................  Spring, Wire and Turned        ................  .......  .................................
                      Product Manufacturing:                                                                    
XXXX...............    Spring and Wire Product      ................  .......  .................................
                        Manufacturing                                                                           
XXXXX..............     Steel Spring                E                    3493  Steel Springs, Except Wire.      
                         Manufacturing, except                                                                  
                         Wire.                                                                                  
XXXXX..............     Wire Spring Manufacturing.  E                   *3495  Wire Springs (Except Watch and   
                                                                                Clock Springs).                 
XXXXX..............     Other Fabricated Wire       R                   *3315  Steel Wiredrawing and Steel Nails
                         Product Manufacturing.                                 and Spikes (Steel Nails and     
                                                                                Spikes Not Made in Wiredrawing  
                                                                                Plants).                        
                                                                        *3399  Primary Metal Products, NEC      
                                                                                (Nonferrous Nails, Brads,       
                                                                                Staples, etc.).                 
                                                                         3496  Miscellaneous Fabricated Wire    
                                                                                Products.                       
XXXX...............    Turned Product               ................  .......  .................................
                        Manufacturing:                                                                          
XXXXX..............     Precision Turned Product    E                    3451  Screw Machine Products.          
                         Manufacturing.                                                                         
XXXXX..............     Bolt, Nut, Screw, Rivet,    E                    3452  Bolts, Nuts, Screws, Rivets, and 
                         and Washer Manufacturing.                              Washers.                        
XXX................  Other Fabricated Metal         ................  .......  .................................
                      Product Manufacturing:                                                                    
XXXX...............    Metal Valve Manufacturing    ................  .......  .................................
XXXXX..............     Industrial Valve            E                    3491  Industrial Valves                
                         Manufacturing.                                                                         
XXXXX..............     Fluid Power Valve and Hose  R                    3492  Fluid Power Valves and Hose      
                         Fitting Manufacturing.                                 Fittings.                       
                                                                        *3728  Aircraft Parts and Auxiliary     
                                                                                Equipment, NEC (Fluid Power     
                                                                                Aircraft Subassemblies).        
XXXXX..............     Other Metal Valve and Pipe  R                   *3429  Hardware, NEC (Hose Nozzles).    
                         Fitting Manufacturing.                                                                 
                                                                        *3432  Plumbing Fixture Fittings and    
                                                                                Trim (Valves Classified as      
                                                                                Fittings and Trim).             
                                                                        *3494  Valves and Pipe Fittings, NEC    
                                                                                (Except Metal Pipe Hangers and  
                                                                                Supports).                      
                                                                        *3499  Fabricated Metal Products, NEC   
                                                                                (Metal Aerosol Valves).         
XXXX...............  All Other Fabricated Metal     ................  .......  .................................
                      Product Manufacturing:                                                                    
XXXXX..............    Enameled Iron and Metal      E                    3431  Enameled Iron and Metal Sanitary 
                        Sanitary Ware                                           Ware.                           
                        Manufacturing.                                                                          
XXXXX..............    Small Arms Ammunition        E                    3482  Small Arms Ammunition.           
                        Manufacturing                                                                           
XXXXX..............    Ammunition Manufacturing,    E                    3483  Ammunition, Except for Small     
                        except Small Arms                                       Arms.                           
XXXXX..............    Small Arms Manufacturing     E                    3484  Small Arms.                      
XXXXX..............    Other Ordnance and           E                    3489  Ordnance and Accessories, NEC.   
                        Accessory Manufacturing                                                                 
XXXXX..............    Fabricated Pipe and Pipe     E                    3498  Fabricated Pipe and Pipe         
                        Fitting Manufacturing                                   Fittings.                       
XXXXX..............    Industrial Pattern           E                    3543  Industrial Patterns.             
                        Manufacturing                                                                           
XXXXX..............    Ball and Roller Bearing      E                    3562  Ball and Roller Bearings.        
                        Manufacturing                                                                           
XXXXX..............    All Other Miscellaneous      R                   *3053  Gaskets, Packing, and Sealing    
                        Fabricated Metal Product                                Devices (Metal Gaskets).        
                        Manufacturing                                                                           
                                                                        *3291  Abrasive Products (Steel Wool    
                                                                                With or Without Soap).          
                                                                        *3432  Plumbing Fixture Fittings and    
                                                                                Trim (Metal Shower Rods).       
                                                                        *3494  Valves and Pipe Fittings, NEC    
                                                                                (Pipe Hangers and Supports).    

[[Page 4554]]
                                                                                                                
                                                                        *3497  Metal Foil and Leaf (Foil and    
                                                                                Foil Containers).               
                                                                        *3499  Fabricated Metal Products, NEC   
                                                                                (Other Metal Products).         
                                                                        *3537  Industrial Trucks, Tractors,     
                                                                                Trailers, and Stackers (Metal   
                                                                                Pallets).                       
                                                                        *3599  Industrial and Commercial        
                                                                                Machinery and Equipment, NEC    
                                                                                (Flexible Metal Hose).          
                                                                        *3993  Signs and Advertising Specialties
                                                                                (Metal Signs).                  
                                                                        *3999  Manufacturing Industries, NEC    
                                                                                (Other Miscellaneous Metal      
                                                                                Products, such as Combs, Hair   
                                                                                Curlers, etc.).                 
XXX................  Machine Shops and Coating,     ................  .......  .................................
                      Engraving, Heat Treating,                                                                 
                      and Allied Activities:                                                                    
XXXX...............    Machine Shops                N                   *3599  Industrial and Commercial        
                                                                                Machinery and Equipment, NEC    
                                                                                (Machine Shops).                
XXXX...............    Coating, Engraving, Heat     ................  .......  .................................
                        Treating, and Allied                                                                    
                        Activities:                                                                             
XXXXX..............     Metal Heat Treating         E                    3398  Metal Heat Treating.             
XXXXX..............     Metal Coating, Engraving    R                   *3479  Coating, Engraving, and Allied   
                         and Allied Services to                                 Services, NEC (Except Jewelry   
                         Manufacturers, Except                                  Engraving and Etching).         
                         Jewelry                                                                                
XXXXX..............     Electroplating, Plating,    E                   *3399  Primary Metal Products, NEC      
                         Polishing, Anodizing and                               (Laminating Steel).             
                         Coloring                                                                               
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E=existing industry; N=new industry; R=revised industry; and    
  *means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                                



                                 Table 2                                
------------------------------------------------------------------------
   1987 SIC code      1987 SIC description      1997 U.S. description   
------------------------------------------------------------------------
3053@                Gaskets, Packings and                              
                      Sealing Devices:                                  
                       Cork Gaskets,         Other Wood Product         
                        Packing, and          Manufacturing (pt)        
                        Sealing Devices.      (Included in Wood Product 
                                              Manufacturing, except     
                                              Furniture subsector).     
                       Metal Gaskets,        All Other Fabricated Metal 
                        Packing, and          Product Manufacturing     
                        Sealing Devices.      (pt).                     
                       Plastics Gaskets,     All Other Plastic Product  
                        Packing and Sealing   Manufacturing (pt)        
                        Devices.              (Included in Rubber and   
                                              Plastic Product           
                                              Manufacturing subsector). 
                       Rubber Gaskets,       All Other Rubber Product   
                        Packing and Sealing   Manufacturing (pt)        
                        Devices.              (Included in Rubber and   
                                              Plastic Product           
                                              Manufacturing subsector). 
3291...............  Abrasive Products:                                 
                       Steel Wool With or    All Other Miscellaneous    
                        Without Soap.         Fabricated Metal Product  
                                              Manufacturing (pt).       
                       Abrasive Products     Abrasive Product           
                        (Except Steel Wool    Manufacturing (Included in
                        With or Without       Nonmetallic Mineral       
                        Soap).                Product Manufacturing     
                                              subsector).               
3315@                Steel Wiredrawing and                              
                      Steel Nails and                                   
                      Spikes:                                           
                       Steel Wiredrawing     Hot-Rolling Mills., Wire   
                        and Steel Nails and   Drawing and Other Primary 
                        Spikes (Except        Metal Product             
                        Steel Nails and       Manufacturing (pt)        
                        Spikes Not Made in    (Included in Primary Metal
                        Wiredrawing Plants).  Manufacturing subsector). 
                       Steel Nails and       Other Fabricated Wire      
                        Spikes Not Made in    Product Manufacturing     
                        Wiredrawing Plants.   (pt).                     
3398...............  Metal Heat Treating...  Metal Heat Treating.       
3399@..............  Primary Metal                                      
                      Products, NEC:                                    
                       Iron and Steel        Hot-Rolling Mills, Wire    
                        Powder, Paste,        Drawing, and Other Primary
                        Flakes, etc.          Metal Product             
                                              Manufacturing (pt)        
                                              (Included in Primary Metal
                                              Manufacturing subsector). 
                       Aluminum Powder,      Aluminum Extruded Product  
                        Paste Flakes, etc.    Manufacturing (pt)        
                                              (Included in Primary Metal
                                              Manufacturing subsector). 
                       Nonferrous Powder,    Secondary Smelting and     
                        Paste, Flakes, etc.   Refining of Nonferrous    
                                              Metals (pt) (Included in  
                                              Primary Metal             
                                              Manufacturing subsector). 
                       Nonferrous Nails,     Other Fabricated Wire      
                        Brads, Staples, etc.  Product Manufacturing     
                                              (pt).                     
                       Laminated Steel.....  Electroplating, Plating,   
                                              Polishing, Anodizing, and 
                                              Coloring (pt).            
3411...............    Metal Cans..........  Metal Can Manufacturing.   
3412...............  Metal Shipping          Other Metal Container      
                      Barrels, Drums, Kegs    Manufacturing (pt).       
                      and Pails.                                        
3421...............  Cutlery...............  Cutlery and Flatware       
                                              Manufacturing, Except     
                                              Precious (pt).            
3423...............  Hand and Edge Tools,    Hand and Edge Tool         
                      Except Machine Tools    Manufacturing (pt).       
                      and Handsaws.                                     
3425...............  Saw Blades and          Saw Blade and Handsaw      
                      Handsaws.               Manufacturing.            
3429@..............  Hardware, NEC:                                     
                       Vacuum and Insulated  Other Metal Container      
                        Bottles, Jugs, and    Manufacturing (pt).       
                        Chests.                                         
                       Hose Nozzles........  Other Metal Valve and Pipe 
                                              Fitting Manufacturing     
                                              (pt).                     
                       Hardware, NEC         Hardware Manufacturing     
                        (Hardware, Except     (pt).                     
                        Hose Nozzles, and                               
                        Vacuum and                                      
                        Insulated Bottles,                              
                        Jugs, and Chests).                              
3431...............    Enameled Iron and     Enameled Iron and Metal    
                        Metal Sanitary Ware.  Sanitary Ware             
                                              Manufacturing.            

[[Page 4555]]
                                                                        
3432...............  Plumbing Fixture                                   
                      Fittings and Trim:                                
                       Valves Classified as  Other Valve and Pipe       
                        Fittings and Trim.    Fitting Manufacturing     
                                              (pt).                     
                       Metal Shower Rods...  All Other Miscellaneous    
                                              Fabricated Metal Product  
                                              Manufacturing (pt).       
3433...............  Heating Equipment,      Heating Equipment except   
                      Except Electric and     Electric Warm Air Furnace 
                      Warm Air Furnaces.      Manufacturing (pt)        
                                              (Included in Machinery    
                                              Manufacturing subsector). 
3441...............  Fabricated Structural   Fabricated Structural Metal
                      Metal.                  Manufacturing.            
                                                                        
3442...............  Metal Doors, Sash,      Metal Door, Sash, Frame,   
                      Frames, Molding, and    Molding, and Trim         
                      Trim.                   Manufacturing.            
                                                                        
3443@..............  Fabricated Plate Work   Plate Work                 
                      (Boiler                 Manufacturing.Power       
                      Shops):Fabricated       Boilers and Heat          
                      Plate Work and Metal    Exchangers                
                      Weldments Power                                   
                      Boiler and Heat                                   
                      Exchanger                                         
                      Manufacturing.                                    
                                                                        
                     Heavy Gauge Tanks.....  Metal Tank Manufacturing   
                                              (Heavy Gauge).            
                                                                        
                     Metal Cooling Towers..  Air-Conditioning and Warm  
                                              Air Heating Equipment and 
                                              Commercial and Industrial 
                                              Refrigeration Equipment   
                                              Manufacturing (pt)        
                                              (Included in Machinery    
                                              Manufacturing subsector). 
3444...............  Sheet Metal Work:                                  
                       Ducts, Flumes,        Sheet Metal Work           
                        Flooring, Siding,     manufacturing (pt).       
                        Dampers, etc..                                  
                     Metal Bins and Vats...  Other Metal Container      
                                              Manufacturing (pt).       
3446...............    Architectural and     Ornamental and             
                        Ornamental Metal      Architectural Metal Work  
                        Work.                 Manufacturing (pt).       
3448...............  Prefabricated Metal     Prefabricated Metal        
                      Buildings and           Building and Component    
                      Components.             Manufacturing.            
3449@..............  Miscellaneous                                      
                      Structural Metal                                  
                      Work:                                             
                       Custom Roll Forming.  Custom Roll Forming.       
                       Fabricated Bar        Fabricated Structural Metal
                        Joists and Concrete   Manufacturing (pt).       
                        Reinforcing Bars.                               
                       Curtain Wall........  Metal Door, Sash Frame,    
                                              Molding, and Trim         
                                              Manufacturing (pt).       
                       Metal Plaster Bases.  Ornamental and             
                                              Architectural Metal Work  
                                              manufacturing (pt).       
3451...............  Screw Machine Products  Precision Turned Product   
                                              Manufacturing.            
3452...............  Bolts, Nuts, Screws,    Bolt, Nut Screw, Rivet, and
                      Rivets, and Washers.    Washer Manufacturing.     
3462...............  Iron and Steel          Iron and Steel Forging.    
                      Forgings.                                         
3463...............  Nonferrous Forgings...  Nonferrous Forging.        
3465...............  Automotive Stampings..  Motor Vehicle Metal        
                                              Stamping Manufacturing    
                                              (included in              
                                              Transportation Equipment  
                                              Manufacturing subsector). 
3466...............  Crowns and Closures...  Crown and Closure          
                                              Manufacturing.            
3469...............  Metal Stampings, NEC:                              
                       Metal Stampings, NEC  Metal Stamping and Powder  
                        (Except Kitchen       Metallurgy Manufacturing  
                        Utensils, and Pots    (pt).                     
                        and Pans for                                    
                        Cooking).                                       
                       Kitchen Utensils,     Kitchen Utensil, Pot, and  
                        and Pots and Pans     Pan Manufacturing.        
                        for Cooking.                                    
3471...............  Electroplating,         Electroplating, Plating,   
                      Plating, Polishing,     Polishing, Anodizing, and 
                      Anodizing, and          Coloring (pt).            
                      Coloring.                                         
3479...............  Coating, Engraving,                                
                      and Allied Services,                              
                      NEC:                                              
                       Coating, Engraving,   Metal Coating, Engraving,  
                        and Allied            and Allied Services to    
                        Services, NEC         Manufacturers, except     
                        (Except Jewelry       Jewelry.                  
                        Engraving and                                   
                        Etching).                                       
                       Jewelry Engraving     Precious Metal Jewelry     
                        and Etching.          Manufacturing (pt)        
                                              (Included in the          
                                              Miscellaneous             
                                              Manufacturing subsector). 
3482...............  Small Arms Ammunition.  Small Arms Ammunition      
                                              Manufacturing.            
3483...............  Ammunition, Except for  Ammunition Manufacturing,  
                      Small Arms.             except Small Arms.        
3484...............  Small Arms............  Small Arms Manufacturing.  
3489...............  Ordnance and            Other Ordnance and         
                      Accessories, NEC.       Accessory Manufacturing.  
3491...............  Industrial Valves.....  Industrial Valve           
                                              Manufacturing.            
3492...............  Fluid Power Valves and  Fluid Power Valve and Hose 
                      Hose Fittings.          Fitting Manufacturing.    
3493...............  Steel Springs, Except   Steel Spring Manufacturing,
                      Wire.                   except Wire.              
3494...............  Valves and Pipe                                    
                      Fittings, NEC:                                    
                       Valves and Pipe       Other Metal Valve and Pipe 
                        Fittings, NEC         Fitting Manufacturing     
                        (Except Metal Pipe    (pt).                     
                        Hangers and                                     
                        Supports).                                      
                       Metal Pipe Hangers    All Other Miscellaneous    
                        and Supports.         Fabricated Metal Product  
                                              Manufacturing (pt).       
3495...............  Wire Springs:                                      
                       Wire Springs (Except  Wire Spring Manufacturing. 
                        Watch and Clock                                 
                        Springs).                                       
                       Watch and Clock       Watch, Clock, and Part     
                        Springs.              Manufacturing (pt)        
                                              (Included in Computer and 
                                              Electronic Product        
                                              Manufacturing subsector). 
3496...............  Miscellaneous           Other Fabricated Wire      
                      Fabricated Wire         Product Manufacturing     
                      Products.               (pt).                     
3497...............  Metal Foil and Leaf:                               
                       Laminated Aluminum    Laminated Aluminum Foil    
                        Foil Rolls/Sheets     Manufacturing for Flexible
                        for Flexible          Packaging Uses (Included  
                        Packaging Uses.       in Paper Manufacturing    
                                              subsector).               
                       Foil and Foil         All Other Miscellaneous    
                        Containers.           Fabricated Metal Product  
                                              Manufacturing (pt).       
3498...............  Fabricated Pipe and     Fabricated Pipe and Pipe   
                      Pipe Fittings.          Fitting Manufacturing.    
3499...............                          Fabricated Metal Products, 
                                              NEC:                      
                       Powder Metallurgy...  Metal Stamping and Powder  
                                              Metallurgy Manufacturing  
                                              (pt).                     
                       Metal Boxes.........  Other Metal Container      
                                              Manufacturing (pt).       
                       Safe and Vault Locks  Hardware Manufacturing     
                                              (pt).                     
                       Metal Aerosol Valves  Other Valve and Pipe       
                                              Fitting Manufacturing     
                                              (pt).                     
                       Metal Furniture       Metal Household Furniture  
                        Parts, Household.     Manufacturing (pt)        
                                              (Included in Furniture    
                                              Manufacturing subsector). 

[[Page 4556]]
                                                                        
                       Metal Furniture       Metal Office Furniture     
                        Parts, Office.        Manufacturing (pt)        
                                              (Included in Furniture    
                                              Manufacturing subsector). 
                       Trophies, Except      Costume Jewelry            
                        Precious.             Manufacturing (Included in
                                              Miscellaneous             
                                              Manufacturing subsector). 
                       Other Metal Products  All Other Miscellaneous    
                                              Fabricated Metal Product  
                                              Manufacturing (pt).       
                                                                        
3523@..............  Farm Machinery and                                 
                      Equipment:                                        
                                                                        
                       Farm Machinery and    Farm Machinery and         
                        Equipment (Except     Equipment Manufacturing   
                        Corrals, Stalls,      (Included in Machinery    
                        Holding Gates, Hand   Manufacturing subsector). 
                        Hair Clippers for                               
                        Animals, Farm                                   
                        Conveyors,                                      
                        Elevators, Loaders,                             
                        Stackers and Bale                               
                        Throwers).                                      
                       Corrals, Stalls,      Ornamental and             
                        Holding Gates.        Architectural Metal Work  
                                              Manufacturing (pt).       
                       Hand Hair Clippers    Hand and Edge Tool         
                        for Animals.          Manufacturing (pt).       
                       Farm Conveyors and    Conveyor and Conveying     
                        Farm Elevators,       Equipment Manufacturing   
                        Stackers, and Bale    (pt) (Included in         
                        Throwers.             Machinery Manufacturing   
                                              subsector).               
                                                                        
3524...............  Lawn and Garden                                    
                      Tractors and Home                                 
                      Lawn and Garden                                   
                      Equipment:                                        
                       Lawn and Garden       Lawn and Garden Tractor and
                        Tractors and Home     Home Lawn and Garden      
                        Lawn and Garden       Equipment Manufacturing   
                        Equipment (Except     (Included in Machinery    
                        Nonpowered            Manufacturing subsector). 
                        Lawnmowers).                                    
                       Nonpowered            Hand and Edge Tool         
                        Lawnmowers.           Manufacturing (pt).       
                                                                        
3537...............  Industrial Trucks,                                 
                      Tractors, Trailers,                               
                      and Stackers:                                     
                       Industrial Trucks,    Industrial Truck, Tractor, 
                        Tractors, Trailers,   Trailer, and Stacker      
                        and Stackers          Manufacturing (Included in
                        (Except Metal         Machinery Manufacturing   
                        pallets and Air       subsector).               
                        Cargo Containers).                              
                       Metal Pallets.......  All Other Miscellaneous    
                                              Fabricated Metal Product  
                                              Manufacturing (pt).       
                       Metal Air Cargo       Other Metal Container      
                        Containers.           Manufacturing (pt).       
                                                                        
3543...............  Industrial Patterns...  Industrial Pattern         
                                              Manufacturing.            
3545@..............  Cutting Tools, Machine                             
                      Tool Accessories, and                             
                      Machinists' Precision                             
                      Measuring Devices:                                
                       Cutting Tools,        Cutting Tool and Machine   
                        Machine Tool          Tool Accessory            
                        Accessories, and      Manufacturing (Included in
                        Machinists'           Machinery Manufacturing   
                        Precision Measuring   subsector).               
                        Devices (Except                                 
                        Precision Measuring                             
                        Devices).                                       
                       Precision Measuring   Hand and Edge Tool         
                        Devices.              Manufacturing (pt).       
                                                                        
3562...............  Ball and Roller         Ball and Roller Bearing    
                      Bearings.               Manufacturing.            
                                                                        
3599...............  Industrial and                                     
                      Commercial Machinery                              
                      and Equipment, NEC:                               
                       Industrial and        Other Industrial           
                        Commercial            Manufacturing and         
                        Machinery and         Industrial Commercial     
                        Equipment, NEC        Machinery and Equipment   
                        (Except Flexible      (pt) (Included in         
                        Metal Hose;           Machinery Manufacturing   
                        Gasoline, Oil and     subsector).               
                        Intake Filters for                              
                        Internal Combustion                             
                        Engines, Except                                 
                        those for Motor                                 
                        Vehicles; Carnival                              
                        Amusement Park                                  
                        Equipment and                                   
                        Machine Shops).                                 
                       Flexible Metal Hose.  All Other Miscellaneous    
                                              Fabricated Metal Product  
                                              Manufacturing (pt).       
                       Gasoline, Oil and     Other Motor Vehicle Part   
                        Intake Filters for    Manufacturing (pt)        
                        Internal Combustion   (Included in              
                        Engines, Except       Transportation Equipment  
                        those for Motor       Manufacturing subsector). 
                        Vehicles.                                       
                       Carnival Amusement    Other Commercial and       
                        Park Equipment.       Service Industry Machinery
                                              Manufacturing (pt)        
                                              (Included in Machinery    
                                              Manufacturing subsector). 
                       Machine Shops.......  Machine Shops.             
                                                                        
3728...............  Aircraft Parts and      ...........................
                      Auxiliary Equipment,                              
                      NEC:                                              
                       Fluid Power Aircraft  Fluid Power Valve and Hose 
                        Subassemblies.        Fitting Manufacturing     
                                              (pt).                     
                       Other Aircraft Parts  Other Aircraft Part and    
                        and Equipment.        Auxiliary Equipment       
                                              Manufacturing (pt)        
                                              (Included in              
                                              Transportation Equipment  
                                              Manufacturing subsector). 
                                                                        
3799@                Transportation          ...........................
                      Equipment, NEC:                                   
                       Wheelbarrows........  Hand and Edge Tool         
                                              Manufacturing (pt).       
                       Automobile, boat,     Travel Trailer and Camper  
                        light truck, and      Manufacturing (pt)        
                        utility trailers.     (Included in              
                                              Transportation Equipment  
                                              Manufacturing subsector). 
                       Other...............  All Other Transportation   
                                              Equipment Manufacturing   
                                              (Included in              
                                              Transportation Equipment  
                                              Manufacturing subsector). 
3914...............  Silverware, Plated      ...........................
                      Ware, and Stainless                               
                      Steel Ware:                                       
                       Cutlery and Flatware  Cutlery and Flatware       
                        Except Precious       Manufacturing, Except     
                        Silverware, Plated    Precious (pt) Silverware  
                        Ware, and Stainless   and Plated Ware (Included 
                        Steel Ware (Except    in Miscellaneous          
                        Nonprecious           Manufacturing subsector). 
                        Flatware and                                    
                        Cutlery).                                       
3993@                Signs and Advertising   ...........................
                      Specialities (Metal                               
                      Signs):                                           
                       Electrical Signs....  Electric Sign Manufacturing
                                              (Included in Electrical   
                                              Equipment, Appliance and  
                                              Component Manufacturing   
                                              subsector).               
                       Metal Signs.........  All Other Miscellaneous    
                                              Fabricated Metal Product  
                                              Manufacturing (pt).       
                       Plastic Signs.......  All Other Plastic Product  
                                              Manufacturing (pt)        
                                              (Included in Rubber and   
                                              Plastic Product           
                                              Manufacturing subsector). 
                       Wood Signs..........  Other Wood Product         
                                              Manufacturing (pt)        
                                              (Included in Wood Product 
                                              Manufacturing, except     
                                              Furniture subsector).     

[[Page 4557]]
                                                                        
3999@                Manufacturing           ...........................
                      Industries, NEC:                                  
                       Beauty and Barber     Metal Office Furniture     
                        Chairs.               Manufacturing (pt)        
                                              (Included in Furniture    
                                              Manufacturing subsector). 
                       Burnt Wood Articles.  Other Wood Product         
                                              Manufacturing (pt)        
                                              (Included in Wood Product 
                                              Manufacturing, except     
                                              Furniture subsector).     
                       Fur Bleaching,        Leather and Hide Tanning   
                        Currying, Scraping,   and Finishing             
                        Tanning and Dyeing.   Manufacturing (pt)        
                                              (Included in Leather and  
                                              Leather Product           
                                              Manufacturing subsector). 
                       Lamp Shades of Paper  Other Lighting Equipment   
                        and Textile.          Manufacturing (pt)        
                                              (Included in Electrical   
                                              Equipment, Appliance and  
                                              Component Manufacturing   
                                              subsector).               
                       Matches.............  Other Miscellaneous        
                                              Chemical Product          
                                              Manufacturing (pt)        
                                              (Included in Chemical     
                                              Manufacturing subsector). 
                       Metal Products, such  All Other Fabricated Metal 
                        as Combs, Hair        Product Manufacturing     
                        Curlers, etc.         (pt).                     
                       Plastics Products,    All Other Plastic Product  
                        such as Combs, Hair   Manufacturing (pt)        
                        Curlers, etc.         (Included in Rubber and   
                                              Plastic Product           
                                              Manufacturing subsector). 
                       Flexographic          Commercial Flexographic    
                        Printing Eyeglass     Printing (pt) (Included in
                        Frames for the        Printing and Related      
                        Trade.                Support Activities        
                                              subsector).               
                       Gravure Printing      Commercial Gravure Printing
                        Eyeglass Frames for   (pt) (Included in Printing
                        the Trade.            and Related Support       
                                              Activities subsector).    
                       Lithographic          Commercial Lithographic    
                        Printing Eyeglass     Printing (pt) (Included in
                        Frames for the        Printing and Related      
                        Trade.                Support Activities        
                                              subsector).               
                       Screen Printing       Commercial Screen Printing 
                        Eyeglass Frames for   (pt) (Included in Printing
                        the Trade.            and Related Support       
                                              Activities subsector)     
                       Other Printing        Other Commercial Printing  
                        Eyeglass Frame for    (pt) (Included in Printing
                        the Trade.            and Related Support       
                                              Activities subsector).    
                       Tape Measures.......  Hand and Edge Tool         
                                              Manufacturing (pt).       
                       Other...............  All Other Miscellaneous    
                                              Manufacturing (pt)        
                                              (Included in Miscellaneous
                                              Manufacturing subsector). 
5085                 Industrial Supplies     ...........................
                      (Wholesale):                                      
                       Reconditioning Drums  Other Metal Container      
                                              Manufacturing (pt).       
                       Other...............  (Included in Wholesale     
                                              subsector).               
------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of''; @ means time series break has
  been created that is greater than 3% of the 1992 value of shipments   
  for the 1987 SIC industry. The abbreviation NEC is used for Not       
  Elsewhere Classified.                                                 



Description of Changes to the U.S. System

    A number of the changes listed in this section were made for 
reasons of international comparability. Where one or more of the three 
North American countries had different definitions of an industry 
classification, adjustments to the definitions in one or more countries 
were required. In constructing NAICS, the three countries agreed to 
move, where change was required to attain international comparability, 
in the direction of the country or countries whose existing 
classification definitions most closely corresponded to the production-
oriented concept adopted for NAICS. Cases where the U.S. changed are 
listed below; other cases where Canada or Mexico moved toward the U.S. 
classification are not, or course, listed in this section.
    Eight new industries were added to the 1997 industry structure for 
this industry subsector. Four of these new industries were created by 
breaking apart 1987 not elsewhere classified (nec) industries. New 
industries were created for:
    Custom Roll Forming Manufacturing from part of 1987 SIC 3449, 
Miscellaneous Structural Metal Work. This was requested by the industry 
and is defined by production process.
    Metal Stamping and Powder Metallurgy Manufacturing from part of 
1987 SIC 3469, Metal Stampings, NEC, and part of 1987 SIC 3499, 
Fabricated Metal Products, NEC. This achieves international 
comparability and combines activities having similar processes. The 
U.S. moved to match Canada.
    Cutlery and Flatware Manufacturing, except Precious from 1987 SIC 
3421, Cutlery, and part of 1987 SIC 3914, Silverware, Plated Ware, and 
Stainless Steel Ware, to achieve international comparability. The 
change combines activities having similar production processes.
    Kitchen Utensil, Pot and Pan Manufacturing from part of 1987 SIC 
3469, Metal Stampings, NEC, to achieve international comparability. 
Mexico had an industry, CMAP 381411, Manufacturing of Kitchen Utensils, 
Pots and Pans.
    Plate Work Manufacturing from part of 1987 SIC 3443, Fabricated 
Plate Work (Boiler Shops), to achieve international comparability. Both 
Canadian and Mexican classification systems contained an industry for 
this activity.
    Power Boiler and Heat Exchanger Manufacturing from part of 1987 SIC 
3443, Fabricated Plate Work (Boiler Shops), to achieve international 
comparability. Both Canadian and Mexican classification systems 
contained an industry for this activity.
    Metal Tank Manufacturing (Heavy Gauge) from part of 1987 SIC 3443, 
Fabricated Plate Work (Boiler Shops), to achieve international 
comparability. Both Canadian and Mexican classification systems 
contained an industry for this activity.
    Machine Shops from part of 1987 SIC 3599, Industrial and Commercial 
Machinery and Equipment, NEC, to 

[[Page 4558]]

achieve international comparability, and combine similar production 
processes. This industry includes establishments engaged in machining 
or otherwise working of industrial material, on a job or order basis, 
producing parts from raw materials, or rebuilding existing parts.
    Two complete industries were transferred out of this industry 
group, because of NAICS decisions that produced international 
comparability:
    Heating Equipment, Except Electric and Warm Air Furnaces was 
transferred into the Machinery Manufacturing subsector.
    Motor Vehicle Metal Stampings were transferred into the 
Transportation Equipment Manufacturing subsector.
    Four activities were transferred out of 1987 SIC Major Group 34, 
Fabricated Metal Products, and are described more fully in their new 
respective NAICS subsectors.
    Clock and watch spring manufacturing was transferred from 1987 SIC 
3495, Wire Springs, into Navigational, Measuring and Control Instrument 
Manufacturing.
    Metal laminated foil roll and sheet manufacturing for flexible 
packaging was transferred from part of 1987 SIC 3497, Metal Foil and 
Leaf, to the subsector for Paper Manufacturing, because the production 
processes are similar, regardless of the material used. This is the 
lamination, not creation of foil.
    Metal cooling tower manufacturing was transferred from 1987 SIC 
3443, Fabricated Plate Work, to the Machinery Manufacturing subsector 
for international comparability. In Canada, cooling towers are produced 
by establishments producing air conditioning equipment.
    Metal furniture part manufacturing was transferred from 1987 SIC 
3499, Fabricated Metal Products, NEC, into Metal Furniture 
Manufacturing.
    Three industries were transferred into this subsector:
    Industrial Pattern Manufacturing was transferred from 1987 SIC 
3543, Industrial Patterns (in the Industrial and Commercial Machinery 
and Computer Equipment major groups), to achieve international 
comparability. The U.S. and Mexico moved to match Canada.
    Metal Heat Treating was transferred from 1987 SIC 3398, Metal Heat 
Treating (in the Primary Metal Industries major group). This change 
achieves international comparability. The U.S. moved to match Canada 
and Mexico.
    Ball and Roller Bearing Manufacturing from 1987 SIC 3562, Ball and 
Roller Bearings (in the Industrial and Commercial Machinery and 
Computer Equipment major group). This reflects the fact that this 
activity is really metal fabrication. Previously, the U.S., Canada, and 
Mexico all had this industry in machinery.
    Seventeen activities were transferred into the Fabricated Metal 
Product Manufacturing subsector:
    Nonpowered hand-held animal clipper manufacturing was transferred 
from 1987 SIC 3523, Farm Machinery and Equipment, into Hand and Edge 
Tool Manufacturing, to achieve international comparability and combine 
activities having similar inputs and production processes.
    Metal corral, stall, and holding gate manufacturing was transferred 
from 1987 SIC 3523, Farm Machinery and Equipment, into Ornamental and 
Architectural Metal Work Manufacturing, to achieve international 
comparability.
    Nonpowered lawnmower manufacturing was transferred from 1987 SIC 
3524, Lawn and Garden Tractors and Home, Lawn and Garden Equipment, 
into Hand and Edge Tool Manufacturing, to achieve international 
comparability and combine activities having similar inputs and 
production processes. The U.S. and Canada moved to agree with Mexico.
    Precision measuring tool manufacturing was transferred from 1987 
SIC 3545, Cutting Tools, Machine Tools Accessories and Machinist 
Precision Measuring Devices, into Hand and Edge Tool Manufacturing, to 
achieve international comparability and combine activities having 
similar inputs. The U.S. and Canada moved to agree with Mexico.
    Wheelbarrow manufacturing was transferred from 1987 SIC 3799, 
Transportation Equipment, NEC, into Hand and Edge Tool Manufacturing to 
achieve international comparability. The U.S. and Canada moved to agree 
with Mexico.
    Tape measure manufacturing was transferred from 1987 SIC 3999, 
Manufacturing Industries, NEC, into Hand and Edge Tool Manufacturing to 
achieve international comparability. The U.S. and Canada moved to agree 
with Mexico.
    Metal air cargo container manufacturing was transferred from 1987 
SIC 3537, Industrial Trucks, Tractors, Trailers, and Stackers, into 
Other Metal Container Manufacturing to achieve comparability with 
Mexico.
    Metal pallet manufacturing was transferred from 1987 SIC 3537, 
Industrial Trucks, Tractors, Trailers, and Stackers, into All Other 
Fabricated Metal Product Manufacturing to achieve comparability with 
Mexico.
    Reconditioning drum manufacturing was transferred from 1987 SIC 
5085, Wholesale of Industrial Supplies, into Metal Shipping Barrels, 
Drums, Kegs, and Pails Manufacturing to achieve comparability with 
Mexico. In NAICS, rebuilding on a factory basis is placed in the 
Manufacturing sector.
    Nonferrous nail, brad and staple manufacturing was transferred from 
1987 SIC 3399, Primary Metal Products, into Miscellaneous Fabricated 
Wire Product Manufacturing to achieve international comparability, and 
because of similar production processes. If the process includes 
drawing, it remains in primary metals.
    Steel nail, spike, etc., manufacturing was transferred from 1987 
SIC 3315, Steel Wiredrawing and Steel Nails and Spikes, into 
Miscellaneous Fabricated Wire Product Manufacturing to achieve 
international comparability, and because of similar production 
processes. If the process includes drawing, it remains in primary 
metals.
    Metal gasket packing and sealing device manufacturing was 
transferred from 1987 SIC 3053, Gaskets, Packing, and Sealing Devices, 
into All Other Fabricated Metal Product Manufacturing to achieve 
international comparability. The U.S. and Canada moved to match Mexico.
    Steel wool manufacturing was transferred from 1987 SIC 3291, 
Abrasive Products, into All Other Fabricated Metal Product 
Manufacturing to achieve international comparability. The U.S. moved to 
match Canada and Mexico.
    Flexible metal hose manufacturing was transferred from 1987 SIC 
3599, Industry and Commercial Machinery and Equipment, NEC, into All 
Other Fabricated Metal Product Manufacturing to achieve international 
comparability.
    Metal sign manufacturing was transferred from 1987 SIC 3993, Signs 
and Advertising Specialties, into All Other Fabricated Metal Product 
Manufacturing to achieve international comparability. The U.S. and 
Canada moved to match Mexico.
    Comb, hair curler, and other metal product manufacturing was 
transferred from 1987 SIC 3999, Manufacturing Industries, NEC, into All 
Other Fabricated Metal Product Manufacturing to achieve international 
comparability.
    Laminating steel was transferred from 1987 SIC 3399, Primary Metal 
Products, NEC, into Electroplating, Plating, Polishing, Anodizing and 
Coloring. This change achieves international comparability. The U.S. 
moved to match Canada and Mexico.
    Also, there were several activities that transferred within the 
Fabricated Metal 

[[Page 4559]]
Product Manufacturing subsector. The number of Fabricated Metal Product 
industries increased from 38 in 1987 to 41 in 1997. For time series 
linkage, 32 of the 38 1987 industries are comparable within three 
percent of the 1997 industries.

Part V--Proposed New Industry Structure for Machinery Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
    Agreement Number 8

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

Machinery Manufacturing

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the 
Committee meeting held August 30, 1995--September 1, 1995 in 
Washington, D.C.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........     9/1/95
Mexico..............................  /S/ Enrique Ordaz......     9/1/95
United States.......................  /S/ Jack E. Triplett...     9/1/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Machinery Manufacturing
XXX  Agricultural, Construction, and Mining Machinery Manufacturing
XXXX  Agricultural Implement Manufacturing
XXXX  Construction Machinery Manufacturing
XXXX  Mining and Oil and Gas Field Machinery Manufacturing
XXX  Industrial Machinery Manufacturing
XXXX  Sawmill and Woodworking Machinery Manufacturing
XXXX  Rubber and Plastic Industry Machinery Manufacturing
XXXX  Other Industrial Machinery Manufacturing
XXX  Commercial and Service Industry Machinery Manufacturing
XXXX  Commercial and Service Industry Machinery Manufacturing
XXX  Heating, Ventilation, Air Conditioning, and Commercial 
Refrigeration Manufacturing
XXXX  Heating, Ventilation, Air Conditioning, and Commercial 
Refrigeration Manufacturing
XXX  Metalworking Machinery Manufacturing
XXXX  Metalworking Machinery Manufacturing
XXX  Engine, Turbine, and Power Transmission Equipment Manufacturing
XXXX  Engine, Turbine, and Power Transmission Equipment 
Manufacturing
XXX  Other General Purpose Machinery Manufacturing
XXXX  Pump and Compressor Manufacturing
XXXX  Material Handling Equipment Manufacturing
XXXX  All Other General Purpose Machinery Manufacturing

Attachment 2--North American Industry Classification System

    Draft Classification for:

Machinery Manufacturing

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industrial classification for these 
industries.
    This draft classification applies to the subsector, Machinery 
Manufacturing. This subsector is sub-divided into seven industry groups 
and thirteen industries. The subsector will be part of the 
Manufacturing sector of the classification.

A General Outline

    The industries included in the Machinery Manufacturing subsector 
create end products that apply mechanical force, for example, the 
application of gears and levers to perform work. Some important 
processes for manufacture of machinery are forging, stamping, bending, 
forming, and machining that are used to shape individual pieces of 
metal. Processes such as welding and assembling are used to join 
separate parts together. These processes are similar to those used in 
metal fabricating establishments. However, machinery manufacturing 
typically employs multiple metal forming processes in manufacturing the 
various parts of the machine and complex assembly operations are an 
inherent part of the production process.
    In general, design considerations are very important in machinery 
production. Establishments specialize in producing machinery designed 
for particular applications. Thus design is considered to be part of 
the production process for the purpose of implementing NAICS. The 
structure reflects this by defining industries and industry groups that 
produce machinery for different applications. A broad distinction 
exists between machinery that is generally used in a variety of 
industrial applications (general purpose machinery) and machinery that 
is designed to be used in a particular industry (special purpose 
machinery). Three industry groups consist of special purpose 
machinery--Agricultural, Construction, and Mining Machinery 
Manufacturing; Industrial Machinery Manufacturing; and Commercial and 
Service Industry Machinery Manufacturing. The other industry groups 
produce general-purpose machinery--Heating, Ventilation, Air 
Conditioning, and Commercial Refrigeration Manufacturing; Metalworking 
Machinery Manufacturing; Engine, Turbine, and Power Transmission 
Equipment Manufacturing; and Other General Purpose Machinery 
Manufacturing.

Limitations and Constraints of the Classification

    Relatively broad industries were created in several areas 
including: Other Industrial Machinery Manufacturing; Heating, 
Ventilation, Air Conditioning, and Commercial Refrigeration 
Manufacturing; and Engine, Turbine and Power Transmission Equipment 
Manufacturing. Occasionally, these aggregations are a consequence of 
differences in the degree of specialization of the three countries. For 
example, Canada cannot support a separation of mining machinery 
manufacturing from oil and gas field machinery manufacturing because of 
the combination of these activities in the same establishments.
    More often, size constraints prohibit separation of activities in 
Canada or Mexico. For example, separate industries are possible for 
textile machinery manufacturing in the United States and Mexico, or for 
paper industry machinery manufacturing in Canada and the United States. 
But due to size constraints, it is not possible to create the textile 
machinery manufacturing industry in Canada or the paper industry 
machinery manufacturing industry in Mexico. Therefore, textile 
machinery manufacturing and paper machinery manufacturing are included 
in the four-digit industry, Other Industrial Machinery Manufacturing.
    Each country will publish additional categories that comprise sub-
divisions of industries, to present data for activities that are 
nationally significant. 

[[Page 4560]]

    For those users requiring detailed commodity information, each 
country will publish information on the products of these industries. 
Efforts also are underway to harmonize the commodity classifications to 
allow for greater comparability of these statistics.

Relationship to ISIC

    Ten of the thirteen four-digit industries in this subsector can be 
assigned to Division 29, Manufacture of Machinery and Equipment, NEC, 
of the current International Standard Industrial Classification of all 
Economic Activities (ISIC, Revision 3) of the United Nations. The 
following three industries belong largely to ISIC Division 29, with the 
exception of the activities indicated: Mining, Oil and Gas Field 
Machinery (drilling bits for oilfield and gas drilling equipment); 
Commercial and Service Industry Machinery Manufacturing (optical 
instruments and lenses and photographic equipment and supplies, except 
photographic films, paper, and chemicals); and Other General Purpose 
Machinery (balance equipment, other than automotive wheel). However, 
because the exceptions indicated are a relatively small part of the 
output of these two NAICS industries, one can combine the industries of 
NAICS for this subsector, and be quite comparable to ISIC 29.

Some Changes to the National Classifications

    The Canadian classification's Machinery Industries major group is 
similar in coverage to the subsector proposed here. The manufacturing 
of heating equipment, now treated as metal fabricating; of some office 
machinery, now classified as electrical equipment; and of engines, now 
classified as transportation equipment have been moved to this 
subsector. Furthermore, the structure--special-purpose machinery and 
general-purpose machinery--is similar. However, the classification has 
more detail, with thirteen industries compared to seven; the Canadian 
national detail adds three more.
    The Mexican classification's Manufacture, Repair and Assembly of 
Machinery and Equipment for Specific Purposes and Manufacture, Repair 
and Assembly of Machinery and Equipment for General Use have a combined 
coverage similar to the subsector proposed here. The manufacturing of 
heating equipment, now treated as metal fabricating, of some office 
machinery, now classified as electrical equipment, and of engines now 
classified as transportation equipment, have been moved to this 
subsector. Furthermore, the structure -special-purpose machinery and 
general-purpose machinery--is similar. The amount of detail in the 
subsector is similar to that of the existing classification.
    For the United States, a major change is the movement of computers 
and peripherals out of this group to the new subsector for Computers 
and Electronic Product Manufacturing. Heating equipment, currently in 
the 1987 SIC Fabricated Metal major group, and optical instruments, 
lenses, and photographic equipment, currently in the 1987 SIC 
Instruments and Related Products major group, have been transferred 
into this subsector. Other changes involve the movement of a number of 
relatively small activities from one national industry to another to 
achieve comparability with Canada and Mexico, and/or to better meet 
production principles. Otherwise, the new structure, with U.S. national 
industry detail, is comparable with the 1987 SIC. For example, only 
seven 1987 U.S. industries have time series breaks that amount to more 
than 3 percent of the industry value of shipments in 1992.

Achievement of Objectives

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

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 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 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 industry 
subsector covered in Part I of this notice. For cases where no 5-digit 
detail is shown, the ECPC is proposing that the 4-digit industries will 
also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                       1997 and U.S. Description       Status code      SIC           1987 SIC Description      
                                                                        code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Machinery Manufacturing:                                                                   
XXX................    Agriculture, Construction,                                                               
                        and Mining Machinery                                                                    
                        Manufacturing:                                                                          
XXXX...............    Agricultural Implement                                                                   
                        Manufacturing:                                                                          

[[Page 4561]]
                                                                                                                
XXXXX..............     Farm Machinery and          R                   *3523  Farm Machinery and Equipment     
                         Equipment Manufacturing.                               (Except Corrals, Stalls, Holding
                                                                                Gates, Hand Clippers for        
                                                                                Animals, and Farm Conveyors/    
                                                                                Elevators).                     
XXXXX..............     Lawn and Garden Tractor     R                   *3524  Lawn and Garden Tractors and Home
                         and Home Lawn and Garden                               Lawn and Garden Equipment       
                         Equipment Manufacturing.                               (Except Nonpowered Lawnmowers). 
XXXX...............    Construction Machinery       R                   *3531  Construction Machinery and       
                        Manufacturing.                                          Equipment (Except Railway Track 
                                                                                Maintenance Equipment; Winches, 
                                                                                Aerial Work Platforms; and      
                                                                                Automotive Wreckers Hoists).    
XXXX...............    Mining and Oil and Gas                                                                   
                        Field Machinery                                                                         
                        Manufacturing:                                                                          
XXXXX..............     Mining Machinery and        E                    3532  Mining Machinery and Equipment,  
                         Equipment Manufacturing.                               Except Oil and Gas Field        
                                                                                Machinery and Equipment.        
XXXXX..............     Oil and Gas Field           E                    3533  Oil and Gas Field Machinery and  
                         Machinery and Equipment                                Equipment.                      
                         Manufacturing.                                                                         
XXX................    Industrial Machinery                                                                     
                        Manufacturing:                                                                          
XXXX...............     Sawmill and Woodworking     E                    3553  Woodworking Machinery.           
                         Machinery Manufacturing.                                                               
XXXX...............     Rubber and Plastic          N                   *3559  Special Industry Machinery, NEC  
                         Industry Machinery                                     (Rubber and Plastics            
                         Manufacturing.                                         Manufacturing Machinery).       
XXXX...............     Other Industrial Machinery                                                              
                         Manufacturing:                                                                         
XXXXX..............      Textile Machinery          E                    3552  Textile Machinery.               
                          Manufacturing.                                                                        
XXXXX..............      Paper Industry Machinery   E                    3554  Paper Industries Machinery.      
                          Manufacturing.                                                                        
XXXXX..............      Printing Machinery and     E                    3555  Printing Trades Machinery and    
                          Equipment Manufacturing.                              Equipment.                      
XXXXX..............      Food Product Machinery     E                    3556  Food Products Machinery.         
                          Manufacturing.                                                                        
XXXXX..............      Semiconductor Machinery    N                   *3559  Special Industry Machinery, NEC  
                          Manufacturing.                                        (Semiconductor Machinery        
                                                                                Manufacturing).                 
XXXXX..............      All Other Industrial       R                   *3559  Special Industry Machinery, NEC  
                          Machinery Manufacturing.                              (Except Rubber and Plastics     
                                                                                Manufacturing Machinery,        
                                                                                Semiconductor Manufacturing     
                                                                                Machinery, and Automotive       
                                                                                Maintenance Equipment).         
XXX................    Commercial and Service                                                                   
                        Industry Machinery                                                                      
                        Manufacturing:                                                                          
XXXX...............     Commercial and Service                                                                  
                         Industry Machinery                                                                     
                         Manufacturing:                                                                         
XXXXX..............      Automatic Vending Machine  E                    3581  Automatic Vending Machines.      
                          Manufacturing.                                                                        
XXXXX..............      Commercial Laundry,        E                    3582  Commercial Laundry, Drycleaning  
                          Drycleaning and Pressing                              and Pressing Machines.          
                          Machine Manufacturing.                                                                
XXXXX..............      Office Machinery           N                   *3578  Calculating and Accounting       
                          Manufacturing.                                        Machinery, Except Electronic    
                                                                                Computers (Except Point of Sales
                                                                                Terminals (Scanning Devices) and
                                                                                Funds Transfer Devices).        
                     .............................  ................    *3579  Office Machines, NEC (Except     
                                                                                Timeclocks, Time Stamps, Pencil 
                                                                                Sharpeners, Stapling Machines,  
                                                                                etc.).                          
XXXXX..............      Optical Instrument and     E                    3827  Optical Instruments and Lenses.  
                          Lense Manufacturing.                                                                  
XXXXX..............      Photographic and           N                   *3861  Photographic Equipment and       
                          Photocopying Equipment                                Supplies (Except Photographic   
                          Manufacturing.                                        Films, Paper and Chemicals).    
XXXXX..............      Other Commercial and       R                   *3559  Special Industry Machinery, NEC  
                          Service Industry                                      (Automotive Maintenance         
                          Machinery Manufacturing.                              Equipment).                     
                                                    ................     3589  Service Industry Machinery, NEC. 
                                                    ................    *3599  Industrial and Commercial        
                                                                                Machinery and Equipment, NEC    
                                                                                (Carnival Amusement Park        
                                                                                Equipment).                     
                                                    ................    *3699  Electrical Machinery, Equipment  
                                                                                and Supplies, NEC (Electronic   
                                                                                Teaching Machines and Flight    
                                                                                Simulators).                    
XXX................      Heating, Ventilation, Air- ................  .......  .................................
                          Conditioning, and                                                                     
                          Commercial Refrigeration                                                              
                          Manufacturing:                                                                        
XXXX...............      Heating, Ventilation, Air- ................  .......  .................................
                          Conditioning, and                                                                     
                          Commercial Refrigeration                                                              
                          Manufacturing:                                                                        
XXXXX..............       Heating Equipment         R                    3433  Heating Equipment, Except        
                           Manufacturing, Except                                Electric and Warm Air Furnaces. 
                           Electric and Warm Air                                                                
                           Furnaces.                                                                            
                                                    ................     3634  Electric Housewares and Fans     
                                                                                (Permanent Electric Wall and    
                                                                                Baseboard Heating Equipment).   
XXXXX..............       Air Purification          N                   *3564  Industrial and Commercial Fans   
                           Equipment Manufacturing.                             and Blowers and Air Purification
                                                                                Equipment (Air Purification     
                                                                                Equipment).                     
XXXXX..............       Industrial and            R                   *3564  Industrial and Commercial Fans   
                           Commercial Fan and                                   and Blowers and Air Purification
                           Blower Manufacturing.                                Equipment (Fans and Blowers).   
XXXXX..............  Air-Conditioning and Warm Air  R                   *3443  Fabricated Plate Work (Boiler    
                      Heating Equipment and                                     Shops) (Metal Cooling Towers).  
                      Commercial and Industrial                                                                 
                      Refrigeration Equipment                                                                   
                      Manufacturing.                                                                            

[[Page 4562]]
                                                                                                                
                                                    ................    *3585  Air-Conditioning and Warm Air    
                                                                                Heating Equipment and Commercial
                                                                                and Industrial Refrigeration    
                                                                                Equipment (Except Water         
                                                                                Coolers).                       
XXX................    Metalworking Machinery       ................  .......  .................................
                        Manufacturing:                                                                          
XXXX...............     Metalworking Machinery      ................  .......  .................................
                         Manufacturing:                                                                         
XXXXX..............      Machine Tool               E                    3541  Machine Tools, Metal Cutting     
                          Manufacturing, Metal                                  Type.                           
                          Cutting Types.                                                                        
XXXXX..............      Machine Tool               E                    3542  Machine Tools, Metal Forming     
                          Manufacturing, Metal                                  Type.                           
                          Forming Types.                                                                        
XXXXX..............      Special Die and Tool, Die  R                   *3544  Special Dies and Tools, Die Sets,
                          Set, Jig, and Fixture                                 Jigs and Fixtures, and          
                          Manufacturing.                                        Industrial Molds (Except Molds).
XXXXX..............  Industrial Mold Manufacturing  R                   *3544  Special Dies and Tools, Die Sets,
                                                                                Jigs and Fixtures, and          
                                                                                Industrial Molds (Molds).       
XXXXX..............  Cutting Tool and Machine Tool  R                   *3545  Cutting Tools, Machine Tool      
                      Accessory Manufacturing.                                  Accessories, and Machinists'    
                                                                                Precision Measuring Devices     
                                                                                (Except Precision Measuring     
                                                                                Devices).                       
XXXXX..............  Rolling Mill Machinery and     E                    3547  Rolling Mill Machinery and       
                      Equipment Manufacturing.                                  Equipment.                      
XXXXX..............  Other Metalworking Machinery   E                    3549  Metalworking Machinery, NEC.     
                      Manufacturing.                                                                            
XXX................    Engine, Turbine, and Power                                                               
                        Transmission Equipment                                                                  
                        Manufacturing:                                                                          
XXXX...............     Engine, Turbine, and Power                                                              
                         Transmission Equipment                                                                 
                         Manufacturing:                                                                         
XXXXX..............      Steam, Gas, and Hydraulic  E                    3511  Steam, Gas, and Hydraulic        
                          Turbine, and Turbine                                  Turbines, and Turbine Generator 
                          Generator Set Unit                                    Set Units.                      
                          Manufacturing.                                                                        
XXXXX..............      Speed Changer, Industrial  E                    3566  Speed Changers, Industrial High- 
                          High-Speed Drive, and                                 Speed Drives, and Gears.        
                          Gear Manufacturing.                                                                   
XXXXX..............      Mechanical Power           E                    3568  Mechanical Power Transmission    
                          Transmission Equipment                                Equipment, NEC.                 
                          Manufacturing.                                                                        
XXXXX..............      Other Engine Equipment     R                   *3519  Internal Combustion Engines, NEC 
                          Manufacturing.                                        (Except Stationary Engine       
                                                                                Radiators).                     
                                                                        *3699  Electrical Machinery, Equipment  
                                                                                and Supplies, NEC (Outboard     
                                                                                Electric Motors).               
XXX................  Other General Purpose                                                                      
                      Machinery Manufacturing:                                                                  
XXXX...............    Pump and Compressor                                                                      
                        Manufacturing:                                                                          
XXXXX..............     Pump and Pumping Equipment  E                    3561  Pumps and Pumping Equipment.     
                         Manufacturing.                                                                         
                                                                        *3743  Railroad Equipment (Locomotive   
                                                                                Fuel Lubricating or Cooling     
                                                                                Medium Pumps).                  
XXXXX..............     Air and Gas Compressor      E                    3563  Air and Gas Compressors.         
                         Manufacturing.                                                                         
XXXXX..............     Measuring and Dispensing    E                    3586  Measuring and Dispensing Pumps.  
                         Pump Manufacturing.                                                                    
XXXX...............    Material Handling Equipment                                                              
                        Manufacturing:                                                                          
XXXXX..............     Elevator and Moving         E                    3534  Elevators and Moving Stairways.  
                         Stairway Manufacturing.                                                                
XXXXX..............     Conveyor and Conveying      R                   *3523  Farm Machinery and Equipment     
                         Equipment Manufacturing.                               (Conveyors and Elevators).      
                       ...........................                       3535  Conveyors and Conveying          
                                                                                Equipment.                      
XXXXX..............     Overhead Traveling Crane,   R                    3536  Overhead Traveling Cranes,       
                         Hoist, and Monorail                                    Hoists, and Monorail Systems.   
                         System Manufacturing.                                                                  
                       ...........................                      *3531  Construction Machinery and       
                                                                                Equipment (Winches, Aerial Work 
                                                                                Platforms, and Automobile       
                                                                                Wrecker Hoists).                
XXXXX..............     Industrial Truck, Tractor,  R                   *3537  Industrial Trucks, Tractors,     
                         Trailer, and Stacker                                   Trailers, and Stackers (Except  
                         Machinery Manufacturing.                               Metal Pallets and Metal Air     
                                                                                Cargo Containers).              
XXXX...............    All Other General Purpose                                                                
                        Machinery Manufacturing:                                                                
XXXXX..............     Power-Driven Hand Tool      E                    3546  Power-Driven Handtools.          
                         Manufacturing.                                                                         
XXXXX..............     Welding and Soldering       R                   *3548  Electric and Gas Welding and     
                         Equipment Manufacturing.                               Soldering Equipment (Except     
                                                                                Transformers for Arc-Welding).  
XXXXX..............     Packaging Machinery         E                    3565  Packaging Machinery.             
                         Manufacturing.                                                                         
XXXXX..............     Industrial Process Furnace  E                    3567  Industrial Process Furnaces and  
                         and Oven Manufacturing.                                Ovens.                          
XXXXX..............     Fluid Power Cylinder and    E                    3593  Fluid Power Cylinders and        
                         Actuator Manufacturing.                                Actuators.                      
XXXXX..............     Fluid Power Pump and Motor  E                    3594  Fluid Power Pumps and Motors.    
                         Manufacturing.                                                                         
XXXXX..............     Scale and Balance           E                    3596  Scales and Balances, Except      
                         Manufacturing, Except                                  Laboratory.                     
                         Laboratory.                                                                            
XXXXX..............     All Other General Purpose   ................     3599  Industrial and Commercial        
                         Machinery Manufacturing.                               Machinery and Equipment, NEC    
                                                                                (Other Machinery).              

[[Page 4563]]
                                                                                                                
                                                                         3569  General Industrial Machinery and 
                                                                                Equipment, NEC.                 
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and 
  * means ``part of''. The abbreviation NEC is used for Not Elsewhere classified.                               



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
3433....................................  Heating Equipment, Except         Heating Equipment Manufacturing,    
                                           Electric and Warm Air Furnaces.   Except Electric and Warm Air       
                                                                             Furnaces (pt).                     
3443@...................................  Fabricated Plate Work (Boiler                                         
                                           Shops):                                                              
                                            Fabricated Plate Work and       Plate Work Manufacturing (Included  
                                             Metal Weldments.                in Fabricated Metal Product        
                                                                             subsector).                        
                                            Power Boilers and Heat          Power Boiler and Heat Exchanger     
                                             Exchangers.                     Manufacturing (Included in         
                                                                             Fabricated Metal Product           
                                                                             subsector).                        
                                            Heavy Gauge Tanks.............  Metal Tank Manufacturing (Heavy     
                                                                             Gauge) (Included in Fabricated     
                                                                             Metal Product subsector).          
                                            Metal Cooling Towers..........  Air-Conditioning and Warm Air       
                                                                             Heating Equipment and Commercial   
                                                                             and Industrial Refrigeration       
                                                                             Equipment Manufacturing (pt).      
3511....................................  Steam, Gas, and Hydraulic         Steam, Gas, and Hydraulic Turbine,  
                                           Turbines, and Turbine Generator   and Turbine Generator Set Unit     
                                           Set Units.                        Manufacturing.                     
3519....................................  Internal Combustion Engines, NEC  Other Motor Vehicle Part            
                                           Stationary Engine Radiators.      Manufacturing (pt) (Included in    
                                                                             Transportation Equipment           
                                                                             Manufacturing subsector).          
                                          Internal Combustion Engines,      Other Engine Equipment Manufacturing
                                           NEC; (Except Stationary Engine    (pt).                              
                                           Radiators).                                                          
3523....................................  Farm Machinery and Equipment:                                         
                                            Farm Machinery and Equipment    Farm Machinery and Equipment        
                                             (Except Corrals, Stalls,        Manufacturing.                     
                                             Holding Gates, Hand Clippers                                       
                                             for Animals, Farm Conveyors/                                       
                                             Elevators.                                                         
                                            Metal Corrals, Stalls, Holding  Architectural and Ornamental Metal  
                                             Gates.                          Work Manufacturing (pt) (Included  
                                                                             in Fabricated Metal Product        
                                                                             Manufacturing subsector).          
                                            Hand Hair Clippers for Animals  Hand and Edge Tool Manufacturing    
                                                                             (pt) (Included in Fabricated Metal 
                                                                             Product Manufacturing subsector).  
                                            Farm Conveyors and Farm         Conveyor and Conveying Equipment    
                                             Elevators.                      Manufacturing (pt).                
3524....................................  Lawn and Garden Tractors and                                          
                                           Home Lawn and Garden Equipment:                                      
                                            Lawn and Garden Tractors and    Lawn and Garden Tractor and Home    
                                             Home Lawn and Garden            Lawn and Garden Equipment          
                                             Equipment (Except Nonpowered    Manufacturing.                     
                                             Lawnmowers).                                                       
                                            Nonpowered Lawnmowers.........  Hand and Edge Tool Manufacturing    
                                                                             (pt) (Included in Fabricated Metal 
                                                                             Product Manufacturing subsector).  
3531@...................................  Construction Machinery and                                            
                                           Equipment:                                                           
                                            Construction Machinery and      Construction Machinery              
                                             Equipment (Except Railway       Manufacturing.                     
                                             Track Maintenance Equipment;                                       
                                             Winches, Aerial Work                                               
                                             Platforms; and Automotive                                          
                                             Wrecker Hoists).                                                   
                                            Railway Track Maintenance       Railroad Rolling Stock Manufacturing
                                             Equipment.                      (pt) (Included in Transportation   
                                                                             Equipment Manufacturing subsector).
                                            Winches, Aerial Work            Overhead Traveling Crane, Hoist, and
                                             Platforms; and Automotive       Monorail System Manufacturing (pt).
                                             Wrecker Hoists.                                                    
3532....................................  Mining Machinery and Equipment,   Mining Machinery and Equipment      
                                           Except Oil and Gas Field          Manufacturing.                     
                                           Machinery and Equipment.                                             
3533....................................  Oil and Gas Field Machinery and   Oil and Gas Field Machinery and     
                                           Equipment.                        Equipment Manufacturing.           
3534....................................  Elevators and Moving Stairways..  Elevator and Moving Stairway        
                                                                             Manufacturing (pt).                
3535....................................  Conveyors and Conveying           Conveyor and Conveying Equipment    
                                           Equipment.                        Manufacturing (pt).                
3536....................................  Overhead Traveling Cranes,        Overhead Traveling Crane, Hoist and 
                                           Hoists and Monorail Systems.      Monorail System Manufacturing (pt).
3537....................................  Industrial Trucks, Tractors,                                          
                                           Trailers, and Stackers:                                              
                                            Industrial Trucks, Tractors,    Industrial Truck, Tractor, Trailer, 
                                             Trailers, and Stackers          and Stacker Machinery              
                                             (Except Metal Pallets and Air   Manufacturing.                     
                                             Cargo Containers).                                                 
                                            Metal Pallets.................  All Other Fabricated Metal Product  
                                                                             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
                                            Metal Air Cargo Containers....  Other Metal Container Manufacturing 
                                                                             (pt) (Included in Fabricated Metal 
                                                                             Product Manufacturing subsector).  
3541....................................  Machine Tools, Metal Cutting      Machine Tool Manufacturing, Metal   
                                           Type.                             Cutting Types.                     

[[Page 4564]]
                                                                                                                
3542....................................  Machine Tools, Metal Forming      Machine Tool Manufacturing, Metal   
                                           Type.                             Forming Types.                     
3543....................................  Industrial Patterns.............  Industrial Pattern Manufacturing    
                                                                             (Included in Fabricated Metal      
                                                                             Product Manufacturing subsector).  
3544....................................  Special Dies and Tools, Die                                           
                                           Sets, Jigs and Fixtures, and                                         
                                           Industrial Molds:                                                    
                                            Special Dies and Tools, Die     Special Die and Tool, Die Set, Jig, 
                                             Sets, Jigs and Fixtures.        and Fixture Manufacturing.         
                                            Industrial Molds..............  Industrial Mold Manufacturing.      
3545@...................................  Cutting Tools, Machine Tool                                           
                                           Accessories, and Machinists'                                         
                                           Precision Measuring Devices:                                         
                                            Precision Measuring Devices...  Hand and Edge Tool Manufacturing    
                                                                             (pt) (Included in Fabricated Metal 
                                                                             Product Manufacturing subsector).  
                                            Other.........................  Cutting Tool and Machine Tool       
                                                                             Accessory Manufacturing.           
3546....................................  Power-Driven Handtools..........  Power-Driven Hand Tool              
                                                                             Manufacturing.                     
3547....................................  Rolling Mill Machinery and        Rolling Mill Machinery and Equipment
                                           Equipment.                        Manufacturing.                     
3548@...................................  Electric and Gas Welding and      Welding and Soldering Equipment     
                                           Soldering Equipment Welding and   Manufacturing Power, Distribution, 
                                           Soldering Equipment               and Specialty Transformer          
                                           Transformers for Arc-Welding.     Manufacturing (pt) (Included in    
                                                                             Electrical Equipment, Appliance and
                                                                             Component Manufacturing subsector).
3549....................................  Metalworking Machinery, NEC.....  Other Metalworking Machinery        
                                                                             Manufacturing.                     
3552....................................  Textile Machinery...............  Textile Machinery Manufacturing.    
3553....................................  Woodworking Machinery...........  Sawmill and Woodworking Machinery   
                                                                             Manufacturing.                     
3554....................................  Paper Industries Machinery......  Paper Industry Machinery            
                                                                             Manufacturing.                     
3555....................................  Printing Trades Machinery and     Printing Trades Machinery and       
                                           Equipment.                        Equipment Manufacturing.           
3556....................................  Food Products Machinery.........  Food Product Machinery              
                                                                             Manufacturing.                     
3559@...................................  Special Industry Machinery, NEC:                                      
                                            Special Industry Machinery,     All Other Industrial Machinery      
                                             NEC (Except Rubber and          Manufacturing (pt).                
                                             Plastics Manufacturing                                             
                                             Machinery, Semiconductor                                           
                                             Manufacturing Machinery and                                        
                                             Automotive Maintenance                                             
                                             Equipment).                                                        
                                            Rubber and Plastics             Rubber and Plastic Industry         
                                             Manufacturing Machinery.        Machinery Manufacturing.           
                                            Automotie Maintenance           Other Commercial and Service        
                                             Equipment.                      Industry Machinery Manufacturing   
                                                                             (pt).                              
                                            Semiconductor Machinery         Semiconductor Manufacturing         
                                             Manufacturing.                  Machinery.                         
3561....................................  Pumps and Pumping Equipment.....  Pump and Pumping Equipment          
                                                                             Manufacturing.                     
3562....................................  Ball and Roller Bearings........  Ball and Roller Bearing             
                                                                             Manufacturing (Included in         
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
3563....................................  Air and Gas Compressors.........  Air and Gas Compressor              
                                                                             Manufacturing.                     
3564....................................  Industrial and Commercial Fans    ....................................
                                           and Blowers and Air                                                  
                                           Purification Equipment:                                              
                                            Air Purification Equipment....  Air Purification Equipment          
                                                                             Manufacturing.                     
                                            Fans and Blowers..............  Industrial and Commercial Fan and   
                                                                             Blower Manufacturing.              
3565....................................  Packaging Machinery.............  Packaging Machinery Manufacturing.  
3566....................................  Speed Changers, Industrial High-  Speed Changer, Industrial High-Speed
                                           Speed Drives, and Gears.          Drive, and Gear Manufacturing.     
3567....................................  Industrial Process Furnaces and   Industrial Process Furnaces and Oven
                                           Ovens.                            Manufacturing.                     
3568....................................  Mechanical Power Transmission     Mechanical Power Transmission       
                                           Equipment, NEC.                   Equipment Manufacturing.           
3569....................................  General Industrial Machinery and  All Other General Purpose Machinery 
                                           Equipment, NEC.                   Manufacturing (pt).                
3571....................................  Electronic Computers............  Electronic Computer Manufacturing   
                                                                             (Included in Computer and          
                                                                             Electronic Product Manufacturing   
                                                                             subsector).                        
3572....................................  Computer Storage Devices........  Computer Storage Device             
                                                                             Manufacturing (Included in Computer
                                                                             and Electronic Product             
                                                                             Manufacturing subsector).          
3575....................................  Computer Terminals..............  Computer Terminal Manufacturing     
                                                                             (Included in Computer and          
                                                                             Electronic Product Manufacturing   
                                                                             subsector).                        
3577....................................  Computer Peripheral Equipment,    Computer Peripheral Equipment       
                                           NEC.                              Manufacturing (pt) (Included in    
                                                                             Computer and Electronic Product    
                                                                             Manufacturing subsector).          
3578@...................................  Calculating and Accounting        ....................................
                                           Machinery, Except Electronic                                         
                                           Computers:                                                           
                                            Calculating and Accounting      Office Machinery Manufacturing (pt).
                                             Machinery, Except Electronic                                       
                                             Computers (Except Point of                                         
                                             Sales Terminals and Funds                                          
                                             Transfer Devices).                                                 
                                            Point of Transfer Terminals     Other Computer Peripheral Equipment 
                                             and Fund Transfer Devices.      Manufacturing (pt) (Included in    
                                                                             Computer and Electronic Product    
                                                                             Manufacturing subsector).          
3579@...................................  Office Machines, NEC:             ....................................
                                            Office Machines, NEC (Except    Office Machinery Manufacturing (pt).
                                             Timeclocks, Time Stamps,                                           
                                             Pencil Sharpeners, Stapling                                        
                                             Machines, etc.).                                                   
                                            Timeclocks, Time Stamps.......  Watch, Clock, and Part Manufacturing
                                                                             (pt) (Included in Computer and     
                                                                             Electronic Product Manufacturing   
                                                                             subsector).                        
                                            Pencil Sharpeners, Stapling     Lead Pencil, Crayon and Artist      
                                             Machines, etc..                 Material Manufacturing (pt)        
                                                                             (Included in Miscellaneous         
                                                                             Manufacturing subsector).          

[[Page 4565]]
                                                                                                                
3581....................................  Automatic Vending Machines......  Automatic Vending Machines          
                                                                             Manufacturing.                     
3582....................................  Commercial Laundry, Drycleaning,  Commercial Laundry, Drycleaning, and
                                           and Pressing Machines.            Pressing Machines Manufacturing.   
3585....................................  Air-Conditioning and Warm Air     ....................................
                                           Heating Equipment and                                                
                                           Commercial and Industrial                                            
                                           Refrigeration Equipment.                                             
                                            Air-Conditioning and Warm Air   Air-Conditioning and Warm Air       
                                             Heating Equipment and           Heating Equipment and Commercial   
                                             Commercial and Industrial       and Industrial Refrigeration       
                                             Refrigeration Equipment         Equipment Manufacturing.           
                                             (Except Water Coolers).                                            
                                            Water Coolers.................  Household Refrigerator and Home and 
                                                                             Farm Freezer Manufacturing (pt)    
                                                                             (Included in Electrical Equipment, 
                                                                             Appliance and Component            
                                                                             Manufacturing subsector).          
3586....................................  Measuring and Dispensing Pumps..  Measuring and Dispensing Pump       
                                                                             Manufacturing.                     
3589....................................  Service Industry Machinery......  Other Commercial and Service        
                                                                             Industry Machinery Manufacturing   
                                                                             (pt).                              
3592....................................  Carburetors, Pistons, Piston      Carburetor, Piston, Piston Ring, and
                                           Rings, and Valves.                Valve Manufacturing (Included in   
                                                                             Transportation Equipment           
                                                                             Manufacturing subsector).          
3593....................................  Fluid Power Cylinders and         Fluid Power Cylinder and Actuator   
                                           Actuators.                        Manufacturing.                     
3594....................................  Fluid Power Pumps and Motors....  Fluid Power Pump and Motor          
                                                                             Manufacturing.                     
3596....................................  Scales and Balances, Except       Scales and Balance Manufacturing,   
                                           Laboratory.                       Except Laboratory.                 
3599@...................................  Industrial and Commercial                                             
                                           Machinery and Equipment, NEC:                                        
                                            Industrial and Commercial       All Other General Purpose Machinery 
                                             Machinery and Equipment, NEC    Manufacturing (pt).                
                                             (Other Machinery).                                                 
                                            Flexible Metal Hose...........  All Other Fabricated Metal Product  
                                                                             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
                                            Gasoline, Oil and Intake        Other Motor Vehicle Part            
                                             Filters for Internal            Manufacturing (pt) (Included in    
                                             Combustion.                     Transportation.                    
                                            Engines, Except those for       Equipment Manufacturing subsector). 
                                             Motor Vehicles.                                                    
                                            Carnival Amusement Park         Other Commercial and Service        
                                             Equipment.                      Industry Machinery Manufacturing   
                                                                             (pt).                              
                                            Machine Shops.................  Machine Shops (Included in          
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
3634....................................  Electric Housewares and Fans:                                         
                                            Electric Housewares and Fans    Electric Housewares and Fan         
                                             (Except Permanent Electric      Manufacturing (pt) (Included in    
                                             Wall and Baseboard heating      Electrical Equipment, Appliance and
                                             Units).                         Component Manufacturing subsector).
                                            Permanent Electric Wall and     Heating Equipment Manufacturing,    
                                             Baseboard Heating Units.        Except Electric and Warm Air       
                                                                             Furnaces (pt).                     
3639....................................  Household Appliances, NEC:                                            
                                            Floor Waxing and Floor          Household Vacuum Cleaner            
                                             Polishing Machines.             Manufacturing (pt) (Included in    
                                                                             Electrical Equipment, Appliance and
                                                                             Component Manufacturing subsector).
                                            Household Sewing Machines.....  All Other Industrial Machinery      
                                                                             Manufacturing (pt).                
                                            Other.........................  Other Household Appliance           
                                                                             Manufacturing (pt) (Included in    
                                                                             Electrical Equipment, Appliance and
                                                                             Component Manufacturing subsector).
3699....................................  Electrical Machinery, Equipment,                                      
                                           and Supplies, NEC:                                                   
                                            Electronic Teaching Machines    Other Commercial and Service        
                                             and Flight Simulators.          Industry Machinery Manufacturing   
                                                                             (pt).                              
                                            Outboard Electric Motors......  Other Engine Manufacturing (pt)     
                                                                             (Included in Transportation        
                                                                             Equipment Manufacturing subsector. 
                                            Bar Code Scanners.............  Other Computer Peripheral Equipment 
                                                                             Manufacturing (pt) (Included in    
                                                                             Computer and Electronic Product    
                                                                             Manufacturing subsector).          
                                            Lasers........................  Classify According to Function.     
                                            Christmas tree lighting sets,   Other Lighting Equipment            
                                             electric insect lamps.          Manufacturing (pt) (Included in    
                                                                             Electrical Equipment, Appliance and
                                                                             Component Manufacturing subsector).
                                            Other.........................  Other Electrical Industrial         
                                                                             Apparatus Manufacturing (pt)       
                                                                             (Included in Electrical Equipment, 
                                                                             Appliance and Component            
                                                                             Manufacturing subsector).          
3743....................................  Railroad Equipment:                                                   
                                            Railroad Equipment (Except      Railroad Equipment Manufacturing    
                                             Railroad Locomotive Pumps).     (Included in Transportation        
                                                                             Equipment Manufacturing subsector).
                                            Locomotive Fuel Lubricating or  Pump and Pumping Equipment          
                                             Cooling Medium Pumps.           Manufacturing.                     
3827....................................  Optical Instruments and Lenses..  Optical Instrument and Lense        
                                                                             Manufacturing.                     
3861@...................................  Photographic Equipment and                                            
                                           Supplies:                                                            

[[Page 4566]]
                                                                                                                
                                            Photographic Equipment and      Photographic and photocopying       
                                             Supplies (Except Photographic   Equipment Manufacturing.           
                                             Films, Paper and Chemicals).                                       
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of'', @ means times series break has been created that is greater than 3%  
  of the 1992 value of shipments for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere      
  Classified.                                                                                                   



Description of changes to the U.S. System

    A number of the changes listed in this section were made for 
reasons of international comparability. Where one or more of the three 
North American countries had different definitions of an industry 
classification, adjustments to the definitions of one or more countries 
were required. In constructing NAICS, the three countries agreed to 
move, where change was required to attain international comparability, 
in the direction of the country or countries whose existing 
classification definitions most closely corresponded to the production-
oriented concept adopted for NAICS. Cases where the U.S. changed are 
listed below; other cases where Canada or Mexico moved toward the U.S. 
classification are not, of course, listed in this section.
    Five new industries were added to the 1997 industry structure for 
this industry subsector. New industries were created for:
    Semiconductor Machinery Manufacturing from part of 1987 SIC 3559, 
Special Industry Machinery, NEC, in response to an industry proposal 
and because of the highly specialized production processes involved.
    Rubber and Plastic Industry Machinery Manufacturing from part of 
1987 SIC 3559, Special Industry Machinery, NEC, in response to a 
plastics industry proposal and because of the highly specialized 
production processes involved. Rubber machinery was included with 
plastics machinery because of shared production characteristics.
    Air Purification Equipment Manufacturing from part of 1987 SIC 
3564, Industrial and Commercial Fans and Blowers and Air Purification 
Equipment, in response to an industry proposal and because of highly 
specialized production processes involved.
    Office Machinery Manufacturing from part of 1987 SIC 3578, 
Calculating and Accounting Machinery, Except Electronic Computers, and 
from part of 1987 SIC 3579, Office Machines, NEC, to achieve 
international comparability. Mexico has a separate class already broken 
out. More advanced electronic office machinery is placed in the new 
Computer and Electronic Product Manufacturing subsector, because the 
production processes are very different.
    Photographic and Photocopying Equipment Manufacturing from Part of 
1987 SIC 3861, Photographic Equipment and Supplies, to achieve 
international comparability.
    Seven industries were removed from this industry group, and 
transferred elsewhere. All seven of these were moved to achieve 
international comparability, or to create the new Computer and 
Electronic Product Manufacturing subsector.
    Industrial Pattern Manufacturing was transferred into the 
Fabricated Metal Product Manufacturing subsector.
    Ball and Roller Bearing Manufacturing was transferred into the 
Fabricated Metal Product Manufacturing subsector.
    Carburetor, Piston, Piston Ring, and Valve Manufacturing was 
transferred into the Transportation Equipment Manufacturing subsector.
    Electronic Computer Manufacturing was transferred into the Computer 
and Electronic Component Manufacturing subsector.
    Computer Storage Product Device Manufacturing was transferred into 
the Computer and Electronic Product Manufacturing subsector.
    Computer Terminal Manufacturing was transferred into the Computer 
and Electronic Product Manufacturing subsector.
    Computer Peripheral Equipment, NEC was transferred into the 
Computer and Electronic Product Manufacturing subsector.
    Fifteen activities transferred out of 1987 Major Group 35, 
Industrial and Commercial Machinery and Computer Equipment, and are 
described more fully in their new respective subsectors.
    Ferrous and nonferrous mold manufacturing was transferred from part 
of 1987 SIC 3544, Special Dies and Tools, Die Sets, Jigs and Fixtures, 
and Industrial Molds, into the Primary Metal Manufacturing subsector.
    Hand hair clippers for animals and metal corral, stall, and holding 
gate manufacturing were transferred from part of 1987 SIC 3523, Farm 
Machinery and Equipment, into the Fabricated Metal Product 
Manufacturing subsector.
    Nonpowered lawn mower manufacturing was transferred from part of 
1987 SIC 3524, Lawn and Garden Tractors and Home Lawn and Garden 
Equipment, into the Fabricated Metal Product Manufacturing subsector.
    Precision measuring tool manufacturing was transferred from part of 
1987 SIC 3545, Cutting Tools, Machine Tool Accessories, and Machinists' 
Precision Measuring Devices, into the Fabricated Metal Product 
Manufacturing subsector.
    Metal air cargo container and metal pallet manufacturing was 
transferred from part of 1987 SIC 3537, Industrial Trucks, Tractors, 
Trailers, and Stackers, into the Fabricated Metal Product Manufacturing 
subsector.
    Machine shops were transferred from part of 1987 SIC 3599, 
Industrial and Commercial Machinery and Equipment, NEC, into the 
Fabricated Metal Product
    Manufacturing subsector, to achieve international comparability. 
Canada had machine shops in CSIC 30, Fabricated Metal Products 
Industries.
    Stationery engine radiator manufacturing was transferred from part 
of 1987 SIC 3519, Internal Combustion Engines, NEC, into the 
Transportation Equipment Manufacturing subsector.
    Gasoline, oil, and air filters for internal combustion engines, 
except motor vehicle was transferred from part of 1987 SIC 3599, 
Industrial and Commercial Machinery and Equipment, NEC, into the 
Transportation Equipment Manufacturing subsector.
    Railway track maintenance equipment manufacturing was transferred 
from part of 1987 SIC 3531, Construction Machinery and Equipment, into 
the Transportation Equipment Manufacturing subsector.
    Arc-welding transformer manufacturing was transferred from part of 
1987 SIC 3548, Electric and Gas Welding and Soldering Equipment, into 
the Electrical Equipment, Appliance and Component Manufacturing 
subsector.
    Water cooler manufacturing was transferred from 1987 SIC 3585, Air-
Conditioning and Warm Air Heating Equipment and Commercial and 
Industrial Refrigeration Equipment, into the Electrical Equipment, 
Appliance 

[[Page 4567]]
and Component Manufacturing subsector.
    Point of sale (computerized cash register), fund transfer machine, 
and automatic teller machine terminal manufacturing was transferred 
from part of 1987 SIC 3578, Calculating
    and Accounting Machines, Except Electronic Computers, into the 
Computer and Electronic Product Manufacturing subsector.
    Pencil sharpener and stapling machine manufacturing was transferred 
from part of 1987 SIC 3579, Office Machines, NEC, into the 
Miscellaneous Manufacturing subsector.
    Time clock and other time recording device manufacturing was 
transferred from part of 1987 SIC 3579, Office Machines, NEC, into the 
Computer and Electronic Product Manufacturing subsector.
    Two industries were transferred into this subsector:
    Heating equipment manufacturing, except electric and warm air 
furnaces was transferred from 1987 SIC 3433, Heating Equipment, Except 
Electric and Warm Air Furnace (in the Fabricated Metal Manufacturing 
major group), to achieve international comparability. Canada had this 
in machinery manufacturing.
    Optical Instrument and Lense Manufacturing was transferred from 
1987 SIC 3827, Optical Instrument and Lenses, to achieve international 
comparability.
    Six activities were transferred into the Machinery Manufacturing 
subsector.
    Household sewing machine manufacturing was transferred from part of 
1987 SIC 3639, Household Appliances, NEC, into All Other Industrial 
Machinery Manufacturing, to achieve international comparability. The 
U.S. and Canada moved to agree with Mexico, because the manufacture of 
household and industrial sewing machines are similar production 
processes.
    Teaching machine and flight simulator manufacturing was transferred 
from part of 1987 SIC 3699, Electrical Machinery, Equipment, and 
Supplies, NEC, into Other Commercial and Service Industry Machinery 
Manufacturing, to achieve international comparability. The U.S. and 
Canada moved to match Mexico.
    Metal cooling tower manufacturing was transferred from part of 1987 
SIC 3443, Fabricated Plate Work (Boiler Shops), into Air-Conditioning 
and Warm Air Heating Equipment and Commercial and Industrial 
Refrigeration Equipment Manufacturing, to achieve international 
comparability. Canada includes cooling towers in CSIC 31, Machinery 
Industries.
    Permanent electric wall and baseboard heating equipment 
manufacturing was transferred from part of 1987 SIC 3634, Electric 
Housewares and Fans into Heating Equipment, Except Electric and Warm 
Air Furnace Manufacturing, to achieve international comparability. The 
U.S. and Canada (from CSIC 30, Fabricated Metals) moved to match 
Mexico.
    Locomotive fuel lubricating and cooling medium pump manufacturing 
was transferred from part of 1987 SIC 3743, Railroad Equipment, into 
Pump and Pumping Equipment Manufacturing, to reflect similarities in 
production.
    Outboard electric motor manufacturing was transferred from part of 
1987 SIC 3699, Electrical Machinery, Equipment, and Supplies, NEC, into 
Other Engine Manufacturing, to achieve international comparability. The 
U.S. moved to match Canada and Mexico.
    Also, there were several activities that transferred within the 
Machinery Manufacturing subsector. The number of machinery 
manufacturing industries increased from 38 in 1987 to 46 in 1997. For 
time series linkage, 31 of the 1987 industries are comparable within 
three percent of the 1997 industries.

Part VI--Proposed New Industry Structure for Electrical Equipment, 
Appliance and Component Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 9

    This Document represents the proposed agreement on the structure of 
the North American Industry Classification System (NAICS) for the 
following industries: Electrical Equipment, Appliance and Component 
Manufacturing.
    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries.
    This NAICS structure was presented and provisionally accepted at 
the NAICS Committee meeting held on August 30, 1995-September 1, 1995 
in Washington, DC.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........     9/1/95
Mexico..............................  /S/ Enrique Ordaz......     9/1/95
United States.......................  /S/ Jack E. Triplet....     9/1/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Electrical Equipment, Appliance, and Component Manufacturing
XXX  Electric Lighting, Equipment and Sign Manufacturing
XXXX  Electric Lamp Bulb and Part Manufacturing
XXXX  Electric Sign and Lighting Fixture Manufacturing
XXX  Household Appliance Manufacturing
XXXX  Small Electrical Appliance Manufacturing
XXXX  Major Appliance Manufacturing
XXX  Electrical Equipment Manufacturing
XXXX  Electrical Equipment Manufacturing
XXX  Other Electrical Equipment and Component Manufacturing
XXXX  Accumulator and Battery Manufacturing
XXXX  Communication and Energy Wire Manufacturing
XXXX  Accessories and Conductors for Carrying Current Manufacturing
XXXX  All Other Electrical Equipment and Component Manufacturing

Attachment 2--North American Industry Classification System

    Draft Classification for:

Electrical Equipment, Appliance and Component Manufacturing

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industrial classification for these 
industries.
    This draft classification applies to the subsector, Electrical 
Equipment, Appliance and Component Manufacturing. This subsector is 
sub-divided into four industry groups and nine industries. This 
subsector is part of the Manufacturing sector.

A General Outline

    The Electrical Equipment, Appliance and Component Manufacturing 
industries create products that generate, distribute and use electrical 
power. While establishments classified in many parts of manufacturing 
make products that use electricity, the manufacture of electric 
lighting equipment and signs and household appliances require 
particular attention to the application of electricity. That is the 
reason for their inclusion in this subsector.

[[Page 4568]]

    Electrical Equipment Manufacturing establishments produce goods 
that generate and distribute electrical power, or that are made with 
similar production technology, such as motors, generators, transformers 
and switchgear apparatus. Other Electrical Equipment and Component 
Manufacturing establishments produce devices for storing electrical 
power (e.g., accumulators), for transmitting electricity (e.g., 
insulated wire), and accessories for carrying current. Activities in 
both Electrical Equipment Manufacturing and Other Electrical Equipment 
and Component Manufacturing industry groups all involve the manufacture 
of machinery for the generation and distribution of power.

Limitations and Constraints of the Classification

    In the Electrical Equipment, Appliance and Component Manufacturing 
subsector, most activities identified in one country exist in the 
others. The way activities are combined in establishments differs to 
some extent in the different countries. For example, Canada cannot 
separate the manufacturing of household cooking equipment from 
refrigerators and freezers because these activities are often combined 
in Canadian establishments. Often an activity is not economically 
significant to the same degree in all countries. For example, size 
constraints in Canada prohibit separating the manufacture of batteries 
from accumulators. For those reasons, some NAICS industries in this 
subsector are broader than would be desirable in a system that 
distinguishes as does NAICS among production processes. Each country 
will publish additional categories that comprise subdivisions of NAICS 
industries to present data for activities that are nationally 
significant.
    For those users requiring detailed commodity information, each 
country will publish information on the products of these industries. 
Efforts are also underway to harmonize the commodity classifications to 
allow comparability of these statistics.

Relationship to ISIC

    Most of the NAICS four-digit industries created in this subsector 
can be assigned to Division 28, Manufacture of Fabricated Metal 
Products, Except Machinery and Equipment or Division 31, Manufacture of 
Electrical Machinery and Apparatus, nec of the current International 
Standard Industrial Classification of all Economic Activities (ISIC, 
Revision 3) of the United Nations. Therefore, data tabulated using 
NAICS can readily be re-tabulated according to ISIC with the following 
exception: NAICS industry, All Other Electrical Equipment and Component 
Manufacturing includes non-electrical products of graphite or carbon 
because those nonelectrical products are made in the same 
establishments as electrical graphite and carbon products. In ISIC, 
this activity is included in Division 26, Manufacture of Other Non-
Metallic Mineral Products.

Some Changes to the National Classifications

    For Canada, the Electrical Equipment, Appliance and Component 
Manufacturing subsector is part of the existing Canadian 
classification's Electrical and Electronic Products Industries major 
group. A large part of that major group will form part of the new NAICS 
Computer and Electronic Product Manufacturing subsector. As well, 
establishments that draw wire and insulate it are classified in Primary 
Metal Manufacturing in NAICS. This subsector includes electric signs 
that are classified in Miscellaneous Manufacturing in the current 
Canadian classification. The structures of the NAICS and Canadian 
classifications are similar. There are fewer industries in NAICS, but 
national industries will provide the same level of detail as before.
    For Mexico, the Electrical Equipment, Appliance and Component 
Manufacturing subsector includes many of the activities currently in 
the Mexican classification's Manufacture and Assembly of Machinery, 
Equipment and Electrical Accessories and Manufacture and Assembly of 
Electric and Non-Electric Appliances and Accessories for Home Use. 
However, NAICS includes the manufacturing of turbines and some engines 
in Machinery Manufacturing, rather than in electrical machinery and it 
classifies electrical apparatus for transportation equipment in 
Transportation Equipment Manufacturing. The structure of the NAICS 
subsector is not similar to that of the corresponding areas of the 
Mexican classification. There are fewer industries in NAICS, but 
national industries will provide the same level of detail as before.
    For the United States, a major change to the structure encompasses 
the transfer of twelve industries out of the existing 1987 SIC major 
group, Electronic and Other Electrical Equipment and Components Except 
Computer Equipment, to the proposed new NAICS subsector, Computer and 
Electronic Product Manufacturing. The industries moved are those that 
manufacture electronic components such as printed circuit boards and 
semiconductors and related devices. Two industries that produce 
electrical equipment/components for motor vehicles, aircraft etc. have 
been moved to the Transportation Equipment Manufacturing subsector.
    Additional changes for the United States for this subsector include 
moving the manufacture of electric signs from the Miscellaneous 
Manufacturing subsector and the creation of a new industry from the 
Primary Metal Manufacturing subsector for the manufacture of insulated 
wire and cable from purchased wire. The relocation of insulated wire 
from Primary Metal Manufacturing to the Electrical Equipment, Appliance 
and Component Manufacturing subsector is a significant improvement of 
the classification with respect to the production principle as it now 
allows for a distinction between establishments that first draw wire 
and then insulate it and those that only insulate.

Achievement of Objectives

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


[[Page 4569]]
been minimized. The statistical agencies can develop statistical 
``links'', to enable the re-tabulation of time series on the new NAICS 
classification structure.

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 NAICS 
industry subsector covered in Part I of this notice. For cases where no 
5-digit detail is shown, the ECPC is proposing that the NAICS 4-digit 
industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                         1987                                   
                             1997 NAICS and U.S.        Status code      SIC          1987 SIC Description      
                                 Description                             code                                   
----------------------------------------------------------------------------------------------------------------
XX                       Electrical Equipment,                                                                  
                          Appliance and Component                                                               
                          Manufacturing:                                                                        
XXX                        Electric Lighting                                                                    
                            Equipment and Sign                                                                  
                            Manufacturing:                                                                      
XXXX                        Electric Lamp Bulb and    E                   3641  Electric Lamp Bulbs and Tubes.  
                             Part Manufacturing                                                                 
XXXX                        Electric Sign and                                                                   
                             Lighting Fixture                                                                   
                             Manufacturing:                                                                     
XXXXX                        Electric Sign            N                  *3993  Signs and Advertising           
                              Manufacturing.                                     Specialties (Electric signs).  
XXXXX                        Residential Electric     E                   3645  Residential Electric Lighting   
                              Lighting Fixture                            3999   Fixtures.                      
                              Manufacturing.                                    Manufacturing Industries, NEC   
                                                                                 (Lamp shades of paper or       
                                                                                 textile).                      
XXXXX                        Commercial, Industrial,  E                   3646  Commercial, Industrial, and     
                              and Institutional                                  Institutional Electric Lighting
                              Electric Lighting                                  Fixtures.                      
                              Fixture Manufacturing.                                                            
XXXXX                        Other Lighting           R                   3648  Lighting Equipment, NEC         
                              Equipment                                  *3699   Electrical Machinery,          
                              Manufacturing.                                     Equipment, and Supplies, NEC   
                                                                                 (Christmas tree lighting sets  
                                                                                 and electric insect lamps).    
XXX                      Household Appliance                                                                    
                          Manufacturing:                                                                        
XXXX                       Small Electrical           ...............  .......  ................................
                            Appliance Manufacturing:.                                                           
XXXXX                       Electric Housewares and   3634             Electri  (Except wall and baseboard      
                             Fan Manufacturing.                        c House   heating units for permanent    
                                                                           and   installation).                 
                                                                          Fans                                  
XXXXX                       Household Vacuum Cleaner  R                   3635  Household Vacuum Cleaners.      
                             Manufacturing.                              *3639  Household Appliances, NEC (Floor
                                                                                 waxing and floor polishing     
                                                                                 machines).                     
XXXX                       Major Appliance            ...............  .......  ................................
                            Manufacturing:                                                                      
XXXXX                       Household Cooking         E                   3631  Household Cooking Equipment.    
                             Appliance Manufacturing.                                                           
XXXXX                       Household Refrigerator    R                   3585  Refrigeration and Heating       
                             and Home and Farm                                   Equipment (Water Coolers)      
                             Freezer Manufacturing.                                                             
                                                      ...............     3632  Household Refrigerators and Home
                                                                                 and Farm Freezers.             
XXXXX                       Household Laundry         E                   3633  Household Laundry Equipment.    
                             Equipment Manufacturing.                                                           
XXXXX                       Other Household           R                   3639  Household Appliances, NEC       
                             Appliance Manufacturing.                            (Except floor waxing and floor 
                                                                                 polishing machines, and        
                                                                                 household sewing machines).    
XXX                      Electrical Equipment                                                                   
                          Manufacturing:                                                                        
XXXX                       Electrical Equipment                                                                 
                            Manufacturing:                                                                      
XXXXX                       Power, Distribution and   R                   3548  Electrical and Gas Welding and  
                             Specialty Transformer                               Soldering Equipment            
                             Manufacturing.                                      (Transformers for arc-welders) 
                                                                          3612  Power, Distribution, and        
                                                                                 Specialty Transformers.        
XXXXX                       Switchgear and            E                   3613  Switchgear and Switchboard      
                             Switchboard Apparatus                               Apparatus.                     
                             Manufacturing.                                                                     
XXXXX                       Motor and Generator       E                   3621  Motors and Generators.          
                             Manufacturing.                                                                     
XXXXX                       Relay and Industrial      E                   3625  Relays and Industrial Controls. 
                             Control Manufacturing.                                                             
XXX                      Other Electrical Equipment   ...............  .......  ................................
                          and Component                                                                         
                          Manufacturing:                                                                        
XXXX                       Accumulator and Battery    ...............  .......  ................................
                            Manufacturing:                                                                      
XXXXX                       Storage Battery           E                   3691  Storage Batteries.              
                             Manufacturing.                                                                     
XXXXX                       Dry and Wet Primary       E                   3692  Primary Batteries, Dry and Wet. 
XXXX                         Battery Manufacturing.   ...............  .......  ................................
XXXXX                       Communication and Energy  N                  *3357  Drawing and Insulating of       
                             Wire Manufacturing                                  Nonferrous Wire (Fiber Optic   
                             Fiber Optic Cable                                   Cable-Insulating Only).        
                             Manufacturing.                                                                     
XXXXX                    Other Communication and      N                  *3357  Drawing and Insulating of       
                          Energy Wire Manufacturing.                             Nonferrous Wire (Except Fiber  
                                                                                 Optic-Insulating Only).        
XXXX                     Accessories and Conductors                                                             
                          for Carrying Current                                                                  
                          Manufacturing:.                                                                       

[[Page 4570]]
                                                                                                                
XXXXX                       Current-Carrying Wiring   E                   3643  Current-Carrying Wiring Devices.
                             Device Manufacturing.                                                              
XXXXX                       Noncurrent-Carrying       E                   3644  Noncurrent-Carrying Wiring      
                             Wiring Device                                       Devices.                       
                             Manufacturing.                                                                     
XXXX                     All Other Electrical                                                                   
                          Equipment and Component                                                               
                          Manufacturing:                                                                        
XXXXX                      Carbon and Graphite        E                   3624  Carbon and Graphite Products.   
                            Product Manufacturing.                                                              
XXXXX                      All Other Electrical       R                   3629  Electrical Industrial Apparatus,
                            Industrial Equipment and                             NEC.                           
                            Supply Manufacturing.                                                               
                                                      ...............    *3699  Electrical Machinery, Equipment,
                                                                                 and Supplies, NEC (Other       
                                                                                 electrical industrial          
                                                                                 apparatus).                    
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E=existing industry; N=new industry; R=revised industry; and *  
  means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                                 



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
3612....................................  Power, Distribution, and          Power, Distribution, and Specialty  
                                           Specialty Transformers.           Transformer Manufacturing (pt).    
3613....................................  Switchgear and Switchboard        Switchgear and Switchboard Apparatus
                                           Apparatus.                        Manufacturing.                     
3621....................................  Motors and Generators...........  Motor and Generator Manufacturing.  
3624....................................  Carbon and Graphite Products....  Carbon and Graphite Product         
                                                                             Manufacturing.                     
3625....................................  Relays and Industrial Controls..  Relay and Industrial Control        
                                                                             Manufacturing.                     
3629....................................  Electrical Industrial Apparatus,  All Other Electrical Industrial     
                                           NEC.                              Equipment and Supply Manufacturing 
                                                                             (pt).                              
3631....................................  Household Cooking Equipment.....  Household Cooking Appliance         
                                                                             Manufacturing.                     
3632....................................  Household Refrigerators and Home  Household Refrigerator and Home and 
                                           and Farm Freezers.                Farm Freezer Manufacturing (pt).   
3633....................................  Household Laundry Equipment.....  Household Laundry Equipment         
                                                                             Manufacturing.                     
3634....................................  Electric Housewares and Fans:                                         
                                            Heating, cooking, and other     Electric Housewares and Fan         
                                             electric housewares including   Manufacturing (pt).                
                                             fans.                                                              
                                            Wall and baseboard heating      Heating Equipment Manufacturing,    
                                             units for permanent             Except Electric and Warm Air       
                                             installation.                   Furnaces (Included in Machinery    
                                                                             Manufacturing subsector).          
3635....................................  Household Vacuum Cleaners.......  Household Vacuum Cleaner            
                                                                             Manufacturing (pt).                
3639....................................  Household Appliances, NEC:                                            
                                            Floor waxing and floor          Household Vacuum Cleaner            
                                             polishing machines.             Manufacturing (pt).                
                                            Household sewing machines.....  All Other Industrial Machinery      
                                                                             Manufacturing (pt) (Included in    
                                                                             Machinery Manufacturing subsector).
                                            Other household appliances....  Other Household Appliance           
                                                                             Manufacturing (pt).                
3641....................................  Electric Lamp Bulbs and Tubes...  Electric Lamp Bulb and Part         
                                                                             Manufacturing.                     
3643....................................  Current-Carrying Wiring Devices.  Current-Carrying Wiring Device      
                                                                             Manufacturing.                     
3644....................................  Noncurrent-Carrying Wiring        Noncurrent-Carrying Wiring Device   
                                           Devices.                          Manufacturing.                     
3645....................................  Residential Electric Lighting     Residential Electric Lighting       
                                           Fixtures.                         Fixture Manufacturing.             
3646....................................  Commercial, Industrial, and       Commercial, Industrial, and         
                                           Institutional Electric Lighting   Institutional Electric Lighting    
                                           Fixtures.                         Fixture Manufacturing.             
3647....................................  Vehicular Lighting Equipment....  Vehicular Lighting Equipment        
                                                                             Manufacturing (Included in         
                                                                             Transportation Equipment           
                                                                             Manufacturing subsector).          
3648@...................................  Lighting Equipment, NEC.........  Other Lighting Equipment            
                                                                             Manufacturing (pt).                
3651....................................  Household Audio and Video         Audio and Video Equipment           
                                           Equipment.                        Manufacturing (Included in Computer
                                                                             and Electronic Product             
                                                                             Manufacturing subsector).          
3652....................................  Phonograph Records and                                                
                                           Prerecorded Audio Tapes and                                          
                                           Disks:                                                               
                                            Record publishing.............  Record production (pt) (Included in 
                                                                             new Information sector) Integrated 
                                                                             Record Companies (pt) (Included in 
                                                                             new Information sector).           
                                            Reproduction of recording       Prerecorded Compact Disc, Tape, and 
                                             media.                          Record Manufacturing (Included in  
                                                                             Computer and Electronic Product    
                                                                             Manufacturing subsector).          
3661....................................  Telephone and Telegraph                                               
                                           Apparatus:                                                           
                                            Telephone and telegraph         Telephone Apparatus Manufacturing   
                                             apparatus, except telephone     (Included in Computer and          
                                             transformers, and consumer      Electronic Product Manufacturing   
                                             external modems..               subsector).                        
                                                                                                                
                                            Telephone transformers........  Electronic Coil, Transformer, and   
                                                                             Other Inductor Manufacturing (pt)  
                                                                             (Included in Computer and          
                                                                             Electronic Product Manufacturing   
                                                                             subsector).                        

[[Page 4571]]
                                                                                                                
                                            Consumer external modems......  Other Electronic Component          
                                                                             Manufacturing (pt) (Included in    
                                                                             Computer and Electronic Product    
                                                                             Manufacturing subsector).          
3663....................................  Radio and Television              Broadcast and Studio Equipment      
                                           Broadcasting and Communication    Manufacturing for Radio, TV, and   
                                           Equipment.                        Cable (pt) (Included in Computer   
                                                                             and Electronic Product             
                                                                             Manufacturing subsector).          
3669....................................  Communications Equipment, NEC...  Other Communication Equipment       
                                                                             Manufacturing (Included in Computer
                                                                             and Electronic Product             
                                                                             Manufacturing subsector).          
3671....................................  Electron Tubes..................  Electron Tube Manufacturing         
                                                                             (Included in Computer and          
                                                                             Electronic Product Manufacturing   
                                                                             subsector).                        
3672....................................  Printed Circuit Boards..........  Printed Circuit Board Manufacturing 
                                                                             (Included in Computer and          
                                                                             Electronic Product Manufacturing   
                                                                             subsector).                        
3674....................................  Semiconductors and Related        Semiconductor and Related Device    
                                           Devices.                          Manufacturing (Included in Computer
                                                                             and Electronic Product             
                                                                             Manufacturing subsector).          
3675....................................  Electronic Capacitors...........  Electronic Capacitor Manufacturing  
                                                                             (Included in Computer and          
                                                                             Electronic Product Manufacturing   
                                                                             subsector).                        
3676....................................  Electronic Resistors............  Electronic Resistor Manufacturing   
                                                                             (Included in Computer and          
                                                                             Electronic Product Manufacturing   
                                                                             subsector).                        
3677....................................  Electronic Coils, Transformers,   Electronic Coil, Transformer, and   
                                           and Other Inductors.              Other Inductor Manufacturing (pt)  
                                                                             (Included in Computer and          
                                                                             Electronic Product Manufacturing   
                                                                             subsector).                        
3678....................................  Electronic Connectors...........  Electronic Connector Manufacturing  
                                                                             (Included in Computer and          
                                                                             Electronic Product Manufacturing   
                                                                             subsector).                        
3679....................................  Electronic Components, NEC:                                           
                                            Electronic control modular      Motor Vehicle Electrical and        
                                             chips for motor vehicles.       Electronic Equipment Manufacturing 
                                                                             (pt) (Included in Transportation   
                                                                             Equipment Manufacturing subsector).
                                            Communication equipment.......  Broadcast and Studio Equipment      
                                                                             Manufacturing for Radio, TV and    
                                                                             Cable (Included in Computer and    
                                                                             Electronic Product Manufacturing   
                                                                             subsector).                        
                                            Other electronic components...  Other Electronic Component          
                                                                             Manufacturing (pt) (Included in    
                                                                             Computer and Electronic Product    
                                                                             Manufacturing subsector).          
3691....................................  Storage Batteries...............  Storage Battery Manufacturing.      
3692....................................  Primary Batteries, Dry and Wet..  Dry and Wet Primary Battery         
                                                                             Manufacturing.                     
3694....................................  Electrical Equipment for          Motor Vehicle Electrical and        
                                           Internal Combustion Engines.      Electronic Equipment Manufacturing 
                                                                             (pt) (Included in Transportation   
                                                                             Equipment Manufacturing subsector).
3695....................................  Magnetic and Optical Recording    Magnetic and Optical Recording Media
                                           Media.                            Manufacturing (pt) (Included in    
                                                                             Computer and Electronic Product    
                                                                             Manufacturing subsector).          
3699@...................................  Electrical Machinery, Equipment,                                      
                                           and Supplies, NEC:                                                   
                                            Christmas tree lighting sets    Other Lighting Equipment            
                                             and electric insect lamps.      Manufacturing (pt).                
                                            Bar code scanners.............  Other Computer Peripheral Equipment 
                                                                             Manufacturing (pt) (Included in    
                                                                             Computer and Electronic Product    
                                                                             Manufacturing subsector).          
                                            Electric outboard motors......  Other Engine Manufacturing (pt)     
                                                                             (Included in Machinery             
                                                                             Manufacturing subsector).          
                                            Flight simulators and           Other Commercial and Service        
                                             electronic teaching machines.   Industry Machinery Manufacturing   
                                                                             (pt) (Included in Machinery        
                                                                             Manufacturing subsector).          
                                            Lasers........................  Classified according to function.   
                                            Other electrical machinery,     All Other Electrical Industrial     
                                             equipment, and supplies.        Equipment and Supply Manufacturing 
                                                                             (pt).                              
----------------------------------------------------------------------------------------------------------------
 The abbreviation ``pt'' means ``part of''; @ means time series break has been created that is greater than 3%  
  of the 1992 value of shipments for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere      
  Classified.                                                                                                   



Description of Changes to the U.S. System

    A number of the changes listed in this section were made for 
reasons of international comparability. Where one or more of the three 
North American countries had different definitions of an industry 
classification, adjustments to the definitions in one or more countries 
were required. In constructing NAICS, the three countries agreed to 
move, where change was required to attain international comparability, 
in the direction of the country or countries whose existing 
classification definitions most closely corresponded to the production-
oriented concept adopted for NAICS. Cases where the U.S. changed are 
listed below; other cases where Canada or Mexico moved toward the U.S. 
classification are not, of course, listed in this section.
    Three new industries were added to the 1997 industry structure for 
this subsector.
    Electric Sign Manufacturing from part of 1987 SIC Code 3993, Signs 
and Advertising Specialties, to achieve international comparability. 
The U.S. and Canada moved to match Mexico.
    Fiber Optic Cable Manufacturing (not drawn) from part of 1987 SIC 
3357, Drawing and Insulating of Nonferrous Wire, for reasons of 
international 

[[Page 4572]]
comparability and because of the highly specialized production 
processes involved, and because this is a newly- emerging technology.
    Other Communication and Energy Wire Manufacturing (insulating of 
only) from part of 1987 SIC Code 3357, Drawing and Insulating of 
Nonferrous Wire, for purposes of international comparability and to 
better reflect production principles. The U.S. moved to match Canada 
and Mexico.
    Sixteen industries were transferred out of 1987 SIC Major Group 36, 
Electronic and Other Electrical Equipment and Components, Except 
Computer Equipment. Of the sixteen industries, twelve are included in 
1997 NAICS Subsector, Computer and Electronic Product Manufacturing, a 
new subsector; two transferred to NAICS Subsector, Transportation 
Equipment Manufacturing; and two were divided into several activities 
that were transferred into the 1997 NAICS Subsectors, Computer and 
Electronic Product Manufacturing and Transportation Equipment 
Manufacturing; and the new Information sector.
    The following twelve industries were transferred to 1997 NAICS 
Subsector, Computer and Electronic Product Manufacturing:

Household Audio and Video Equipment
Telephone and Telegraph Apparatus
Radio and Television Broadcasting and Communication Equipment
Communications Equipment, NEC
Electron Tubes
Printed Circuit Boards
Semiconductors and Related Devices
Electronic Capacitors
Electronic Resistors
Electronic Coils, Transformers, and Other Inductors
Electronic Connectors
Magnetic and Optical Recording Media

    Two industries were transferred from 1987 SIC Major Group 36, 
Electronic and Other Electrical Equipment and Component, Except 
Computer Equipment, to 1997 NAICS Subsector, Transportation Equipment 
Manufacturing. They were 1987 SIC 3647, Vehicular Lighting Equipment, 
and 1987 SIC 3694, Electrical Equipment for Internal Combustion 
Engines.
    Record publishing moved from part of 1987 SIC 3652, Phonograph 
Records and Prerecorded Audio Tapes and Disks, to the new NAICS 
Information sector. The remaining activities were transferred to 1997 
NAICS Subsector, Computer and Electronic Product Manufacturing.
    1987 SIC 3679, Electronic Components, NEC, was split three ways. 
One part, electronic control modular chips for motor vehicles, was 
transferred to 1997 NAICS Subsector, Transportation Equipment 
Manufacturing, and the other two parts, communication equipment and 
other electronic components, moved to two separate industries within 
1997 NAICS Subsector, Computer and Electronic Product Manufacturing.
    Three activities transferred into the 1997 Electrical Equipment, 
Appliance and Component subsector:
    Transformers for arc-welders from part of 1987 SIC 3548, Electrical 
and Gas Welding and Soldering Equipment, to Power, Distribution, and 
Specialty Transformer Manufacturing, to achieve international 
comparability. Canada had this in CSIC Major Group 33, Electrical and 
Electronic Products Industries.
    Lamp shades of paper and textiles from part of 1987 SIC 3999, 
Manufacturing Industries, NEC, to Residential Electric Lighting Fixture 
Manufacturing, to achieve international comparability. Canada had lamp 
shades in CSIC MG 33, Electrical and Electronic Products Industries.
    Water coolers from part of 1987 SIC 3585, Refrigeration and Heating 
Equipment, to Household Refrigerator and Home and Farm Freezer 
Manufacturing, to achieve international comparability. The U.S. and 
Canada moved to match Mexico.
    Also, several activities transferred within the Electrical 
Equipment, Appliance and Component Manufacturing subsector. The number 
of electrical equipment, appliance and component manufacturing 
industries decreased from 37 in 1987 to 23 in 1997. Excluding the 
sixteen industries that were moved out of this subsector, all but 2 of 
the 22 remaining 1987 industries are comparable within three percent of 
the 1997 industries; both of the time series breaks involve splitting 
activities out of old NEC categories.

Part VII--Proposed New Industry Structure for Transportation Equipment 
Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 10

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

Transportation Equipment Manufacturing

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries.
    This NAICS structure was presented and provisionally accepted at 
the NAICS Committee meeting held on August 30, 1995--September 1, 1995 
in Washington, DC.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........     9/1/95
Mexico..............................  /S/ Enrique Ordaz......     9/1/95
United States.......................  /S/ Jack E. Triplett...     9/1/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Transportation Equipment Manufacturing
XXX  Motor Vehicle Manufacturing
XXXX  Passenger Car and Light Duty Truck Manufacturing
XXXX  Heavy Duty Truck Manufacturing
XXX  Truck and Bus Body and Trailer Manufacturing
XXXX  Truck and Bus Body and Trailer Manufacturing
XXX  Motor Vehicle Part Manufacturing
XXXX  Motor Vehicle Gasoline Engine and Engine Part Manufacturing
XXXX  Motor Vehicle Electrical and Electronic Equipment 
Manufacturing
XXXX  Motor Vehicle Steering and Suspension Component (Except 
Springs) Manufacturing
XXXX  Motor Vehicle Brake System Manufacturing
XXXX  Motor Vehicle Transmission and Power Train Part Manufacturing
XXXX  Motor Vehicle Fabric Accessory and Seat Manufacturing
XXXX  Motor Vehicle Metal Stamping
XXXX  Other Motor Vehicle Part Manufacturing
XXX  Aerospace Product and Part Manufacturing
XXXX  Aerospace Product and Part Manufacturing
XXX  Railroad Rolling Stock Manufacturing
XXXX  Railroad Rolling Stock Manufacturing
XXX  Ship and Boat Building
XXXX  Ship and Boat Building
XXX  Miscellaneous Transportation Equipment Manufacturing
XXXX  Miscellaneous Transportation Equipment Manufacturing 

[[Page 4573]]


Attachment 2--North American Industry Classification System

    Draft Classification for:

Transportation Equipment Manufacturing

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

A General Outline

    The Transportation Equipment Manufacturing industries produce 
equipment for transporting people and goods.
    Assembly of components, usually purchased as subassemblies, 
characterizes the chief production process in this subsector. Other 
processes employed in industries in this subsector include bending, 
forming, welding, machining, and assembly of metal or plastic to make 
parts for the subassemblies that are further fabricated into the 
finished product by other establishments in the group. Though many of 
these individual production processes appear in other machinery and 
equipment industries, transportation equipment is accorded an entire 
subsector because of its economic importance in all three countries.
    NAICS has industry groups for each mode of transport--road, rail, 
air and water. Parts for motor vehicles are important enough to warrant 
a separate industry group. Moreover, establishments that manufacture 
only parts are not as vertically integrated as those that produce 
complete vehicles and parts manufacture requires less assembly.

Limitations and Constraints of the Classification

    In the Transportation Equipment Manufacturing industry, most 
activities that were identified in one country exist in the others. 
However, often an activity is not economically significant to the same 
degree in all countries. For example, a relatively broad NAICS industry 
was created for Aerospace Product and Part Manufacturing because this 
industry is less prominent in Canada and Mexico than in the United 
States. In Mexico, it is not possible to subdivide truck and bus body 
from trailer manufacturing for reasons of size. Size constraints in 
Canada and Mexico prohibit separating ship building from boat building.
    An operating rule has therefore been adopted for this industry 
subsector that the NAICS industries must be economically significant 
and publishable in all three countries. Each country will publish 
additional categories that comprise subdivisions of NAICS industries, 
to present data for activities that are nationally significant.
    For those users requiring detailed commodity information, each 
country will publish information on the products of these industries. 
Efforts are also underway to harmonize the commodity classifications to 
allow for greater comparability of these statistics.

Relationship to ISIC

    Most NAICS 4-digit industries in this subsector are contained in 
Division 34, Manufacture of Motor Vehicles, Trailers and Semi-Trailers, 
and Division 35, Building and Repairing of Ships and Boats of the 
current International Standard Industrial Classification of all 
Economic Activities (ISIC, Revision 3) of the United Nations. There 
are, however, some differences between the two systems. ISIC has two 
divisions for transportation equipment, Divisions 34 and 35. NAICS, on 
the other hand, treats this as a single subsector with seven industry 
groups. NAICS treats some activities, such as the manufacture of engine 
pumps, motor vehicle electrical equipment, automotive fabrics, and 
automotive seats as the manufacture of automotive parts in the 
Transportation Equipment Manufacturing subsector. ISIC classifies these 
activities elsewhere. ISIC treats guided missiles, tanks and armored 
vehicles as machinery. NAICS includes these activities in 
Transportation Equipment Manufacturing because the production processes 
are similar to that of other transportation equipment. NAICS groups 
automotive hardware (door handles and similar parts) with other 
hardware because the production processes are similar, but includes 
stamping in automotive parts because auto stampings are produced in 
specialized establishments.
    The following NAICS industries belong to ISIC Divisions 34 and 35 
with the exception of the activities indicated: Truck and Bus Body and 
Trailer Manufacturing (dump truck lifting mechanisms); Motor Vehicle 
Gasoline Engine and Engine Part Manufacturing (motor vehicle engine 
pumps); Motor Vehicle and Electronic Equipment Manufacturing 
(electrical and electronic motor vehicle equipment); Motor Vehicle 
Fabric Accessory and Seat Manufacturing (automotive fabrics, linings 
and trimmings); Other Motor Vehicle Part Manufacturing (filters for 
internal combustion engines, except motor vehicles); Aerospace Product 
and Part Manufacturing (aircraft pumps and guided missiles and parts); 
and Other Transportation Equipment Manufacturing (tanks and armored 
vehicles). Despite these differences that for the most part, are 
relatively small portions of the NAICS industries, this NAICS subsector 
is substantially the same as the combination of the two ISIC Divisions.

Some Changes to the National Classifications

    For Canada, the Transportation Equipment Manufacturing subsector is 
largely the same as the current Canadian classification's 
Transportation Equipment Industries major group. The NAICS subsector 
includes the rebuilding of motor vehicle parts on a factory basis, that 
are partly in Fabricated Metal Industries and partly in Wholesaling in 
the Canadian classification. On the other hand, the NAICS classifies 
hardware for transportation equipment in Fabricated Metal Product 
Manufacturing, while the Canadian classification includes their 
manufacture in Transportation Equipment. The structure and amount of 
detail of this NAICS subsector is similar to that of the corresponding 
areas of the Canadian classification.
    For Mexico, the Transportation Equipment Manufacturing subsector 
has coverage similar to the Mexican classification's Automotive 
Industry and Manufacture, Repair and Assembly of Other Transportation 
Equipment and Parts. The NAICS subsector includes the rebuilding on a 
factory basis of motor vehicle gasoline engines, now classified in the 
Mexican classification's Repair and Maintenance subsector. It also 
includes the manufacture of electrical equipment for transportation 
equipment, currently classified with electrical equipment in the 
Mexican classification; automotive fabrics, currently in textiles; and 
fiberglass boats, currently in the manufacture of plastic products. 
However, the manufacturing of hardware and springs for transportation 
equipment is classified in Fabricated Metal Product Manufacturing in 
NAICS, not in transportation equipment as in the Mexican 
classification. The structure and amount of detail of this NAICS 
subsector is similar to that of the corresponding areas of the Mexican 
classification.
    For the United States, several activities related to the production 
of transportation equipment are transferred 

[[Page 4574]]
into this subsector. For example, automotive job stamping of body parts 
is now included in this subsector. It has been transferred to this 
subsector to achieve comparability with Canada and Mexico, and because 
the production processes involved are exclusively devoted to the 
production of transportation equipment. The capital equipment required 
to produce automotive job stamping cannot be easily changed to produce 
other kinds of stamping, such as appliance parts. Further, most 
automotive job stamping producers have arrangements (contractual etc.) 
that makes it even harder to switch production to other kinds of 
stamping. Other activities moved to this subsector for the United 
States include automotive lighting, electronic components, fabric 
accessories and seating, essentially for the reasons listed above. In 
addition, NAICS provides more industry detail than the 1987 SIC. Heavy 
duty truck manufacturing is separated from manufacture of light trucks 
and passenger cars to recognize differences in the production process 
for heavy trucks and truck bodies, and the high degree of 
specialization in establishments that build heavy trucks.

Achievement of Objectives

    The classification meets the objectives for the North American 
Industry Classification System (NAICS). It includes industries that 
group establishments with similar production processes, that is, it 
applies the production-oriented economic concept. In the main, the 
hierarchical structure of the classification also follows the 
production concept.
    An objective of the NAICS project is the delineation of industries 
engaged in the production of advanced technologies. The proposed 
structure takes account of the development of advanced electronic 
sensors and control mechanisms in automobiles. Existing classifications 
do not have a clear location for the production of these goods. It is 
expected that this activity will grow and the proposed structure will 
allow for the creation of a separate industry for this activity in the 
future.
    The industries have high specialization ratios, and they are 
economically significant. The detail (4-digit) level and structure of 
the classification are balanced in size. This enhances the 
classification's suitability for sampling, data-publishing and other 
aspects of survey operations. Finally, while disruptions to time series 
exist, they have been minimized. The statistical agencies can develop 
statistical ``links'', to enable the re- tabulation of time series on 
the new NAICS classification structure.
    The classification achieves comparability for the three 
participating countries. Based on existing data, all three countries 
expect to be able to publish data regularly at the industry (4-digit) 
level of the structure. All countries agree on the detailed definitions 
of the industries.

Section B-Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the 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 NAICS 
industry subsector covered in Part I of this notice. For cases where no 
5-digit detail is shown, the ECPC is proposing that the NAICS 4-digit 
industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                         1987                                   
                             1997 NAICS AND U.S.        Status code      SIC          1987 SIC description      
                                 description                             code                                   
----------------------------------------------------------------------------------------------------------------
XX                       Transportation Equipment                                                               
                          Manufacturing:                                                                        
XXX                        Motor Vehicle                                                                        
                            Manufacturing:                                                                      
XXXX                        Passenger Car and Light   N                  *3711  Motor Vehicles and Passenger Car
                             Duty Truck                                          Bodies (Passenger Cars and     
                             Manufacturing.                                      Light Duty Trucks).            
XXXX                        Heavy Duty Truck          N                  *3711  Motor Vehicles and Passenger Car
                             Manufacturing.                                      Bodies (Heavy Duty Trucks).    
XXX                        Truck and Bus Body and                                                               
                            Trailer Manufacturing:                                                              
XXXX                        Truck and Bus Body and                                                              
                             Trailer Manufacturing:                                                             
XXXXX                        Truck and Bus Body       R                  *3711  Motor Vehicles and Passenger Car
                              Manufacturing.                                     Bodies (Kit Car and Other      
                                                                                 Passenger Car Bodies).         
                                                      ...............     3713  Truck and Bus Bodies.           
                                                      ...............    *3714  Motor Vehicle Parts and         
                                                                                 Accessories (Dumptruck Lifting 
                                                                                 Mechanisms and Fifth Wheels).  
XXXXX                        Truck Trailer            E                   3715  Truck Trailers.                 
                              Manufacturing.                                                                    
XXXXX                        Motor Home               E                   3716  Motor Homes.                    
                              Manufacturing.                                                                    
XXXXX                        Travel Trailer and       R                   3792  Travel Trailers and Campers.    
                              Camper Manufacturing.                      *3799  Transportation Equipment, NEC   
                                                                                 (Automobile, Boat, Utility and 
                                                                                 Light Truck Trailers).         
XXX                      Motor Vehicle Part                                                                     
                          Manufacturing:                                                                        
XXXX                       Motor Vehicle Gasoline                                                               
                            Engine and Engine Part                                                              
                            Manufacturing:                                                                      
XXXXX                       Carburetor, Piston,       E                   3592  Carburetors, Pistons, Piston    
                             Piston Ring and Valve                               Rings, and Valves.             
                             Manufacturing.                                                                     
XXXXX                       Engine and Engine Part    N                  *3714  Motor Vehicle Parts and         
                             Manufacturing.                                      Accessories (Gasoline Engines  
                                                                                 and Engine Parts Including     
                                                                                 Rebuilt).                      
XXXX                       Motor Vehicle Electrical                                                             
                            and Electronic Equipment                                                            
                            Manufacturing:                                                                      

[[Page 4575]]
                                                                                                                
XXXXX                       Vehicular Lighting        E                   3647  Vehicular Lighting Equipment.   
                             Equipment Manufacturing.                                                           
XXXXX                       Motor Vehicle Electrical  R                  *3679  Electronic Components, NEC      
                             and Electronic                                      (Electronic Control Modular    
                             Equipment Manufacturing.                            Chips for Motor Vehicles).     
                                                      ...............     3694  Electrical Equipment for        
                                                                                 Internal Combustion Engines.   
                                                      ...............    *3714  Motor Vehicle Parts and         
                                                                                 Accessories (Wiring Harness    
                                                                                 Sets, Other Than Ignition;     
                                                                                 Block Heaters and Battery      
                                                                                 Heaters; Instrument Board      
                                                                                 Assemblies; Permanent          
                                                                                 Defrosters; Windshield Washer- 
                                                                                 Wiper Mechanisms; Cruise       
                                                                                 Control Mechanisms; and Other  
                                                                                 Electrical Equipment for       
                                                                                 Internal Combustion Engines).  
XXXX                       Motor Vehicle Steering     N                  *3714  Motor Vehicle Parts and         
                            and Suspension Component                             Accessories (Steering and      
                            (Except Springs)                                     Suspension Parts).             
                            Manufacturing.                                                                      
XXXX                       Motor Vehicle Brake        N                  *3292  Asbestos Products (Asbestos     
                            System Manufacturing.                                Brake Linings and Pads).       
                                                      ...............    *3714  Motor Vehicle Parts and         
                                                                                 Accessories (Brake and Brake   
                                                                                 Systems, Including Assemblies).
XXXX                       Motor Vehicle              N                  *3714  Motor Vehicle Parts and         
                            Transmission and Power                               Accessories (Transmissions and 
                            Train Part Manufacturing.                            Power Train Parts, Including   
                                                                                 Rebuilding).                   
XXXX                       Motor Vehicle Fabric       N                  *2396  Automotive Trimmings, Apparel   
                            Accessory and Sat                                    Findings, and Related Products 
                            Manufacturing.                                       (Textile Motor Vehicle         
                                                                                 Trimmings).                    
                                                      ...............    *2399  Fabricated Textile Products, NEC
                                                                                 (Motor Vehicle Seat Belts, and 
                                                                                 Seat and Tire Covers).         
                                                      ...............    *2531  Public Building and Related     
                                                                                 Furniture (Seats for Motor     
                                                                                 Vehicles).                     
XXXX                       Motor Vehicle Metal        ...............    *3465  Automotive Stampings.           
                            Stamping.                                                                           
XXXX                       Other Motor Vehicle Part   R                  *3519  Internal Combustion Engines, NEC
                            Manufacturing.                                       (Stationary Engine Radiators). 
                                                      ...............    *3599  Industrial and Commercial       
                                                                                 Machinery and Equipment, NEC   
                                                                                 (Gasoline, Oil and Intake      
                                                                                 Filters for Internal Combustion
                                                                                 Engines, Except those for Motor
                                                                                 Vehicles).                     
                                                      ...............    *3714  Motor Vehicle Parts and         
                                                                                 Accessories (Except Truck and  
                                                                                 Bus Bodies, Trailers, Engine   
                                                                                 and Engine Parts, Motor Vehicle
                                                                                 Electrical and Electronic      
                                                                                 Equipment, Motor Vehicle       
                                                                                 Steering and Suspension        
                                                                                 Components, Motor Vehicle Brake
                                                                                 Systems, and Motor Vehicle     
                                                                                 Transmission and Power Train   
                                                                                 Parts).                        
XXX                      Aerospace Product and Part                                                             
                          Manufacturing:                                                                        
XXXX                       Aerospace Product and                                                                
                            Part Manufacturing:                                                                 
XXXXX                       Aircraft Manufacturing..  E                   3721  Aircraft.                       
XXXXX                    Aircraft Engine and Engine   E                  *3724  Aircraft Engines and Engine     
                          Part Manufacturing.                                    Parts.                         
XXXXX                        Other Aircraft Part and  R                  *3728  Aircraft Parts and Auxiliary    
                             Auxiliary Equipment                                 Equipment, NEC (Except Fluid   
                             Manufacturing.                                      Power Aircraft Subassemblies). 
XXXXX                        Guided Missile and       E                   3761  Guided Missiles and Space       
                             Space Vehicle                                       Vehicles.                      
                             Manufacturing.                                                                     
XXXXX                       Guided Missile and Space  E                   3764  Guided Missile and Space Vehicle
                             Vehicle Propulsion Unit                             Propulsion Units and Propulsion
                             and Propulsion Unit                                 Unit Parts.                    
                             Part Manufacturing.                                                                
XXXXX                       Other Guided Missile and  E                   3769  Guided Missile and Space Vehicle
                             Space Vehicle Part and                              Parts and Auxiliary Equipment. 
                             Auxiliary Equipment                                                                
                             Manufacturing.                                                                     
XXX                      Railroad Rolling Stock                                                                 
                          Manufacturing:                                                                        
XXXX                       Railroad Rolling Stock     R                  *3531  Construction Machinery and      
                            Manufacturing.                                       Equipment (Railway Maintenance 
                                                                                 of Way Equipment).             
                                                      ...............    *3743  Railroad Equipment (Except      
                                                                                 Locomotive Fuel Lubricating or 
                                                                                 Cooling Medium Pumps).         
XXX                      Ship and Boat Building:                                                                
XXXX                       Ship and Boat Building:                                                              
XXXXX                       Ship Building and         E                   3731  Ship Building and Repairing.    
                             Repairing.                                                                         
XXXXX                       Boat Building...........  R                  *3732  Boat Building and Repairing     
                                                                                 (Boat Building and Boat        
                                                                                 Building and Repair in the same
                                                                                 establishment).                
XXX                      Miscellanous Transportation                                                            
                          Equipment Manufacturing:                                                              
XXXX                       Miscellaneous                                                                        
                            Transportation Equipment                                                            
                            Manufacturing:                                                                      
XXXXX                       Motorcycle, Bicycle and   ...............    *3944  Games, Toys, and Children's     
                             Part Manufacturing.                                 Vehicles, except Dolls and     
                                                                                 Bicycles (Metal Tricycles).    
                                                      ...............    *3751  Motorcyles, Bicycles and Parts. 
XXXXX                       Military Armored          R                  *3711  Motor Vehicles and Passenger Car
                             Vehicle, Tank, and Tank                             Bodies (Military Armored       
                             Component Manufacturing.                            Vehicles).                     

[[Page 4576]]
                                                                                                                
                                                      ...............    *3795  Tanks and Tank Components.      
XXXXX                       Other Miscllanous         R                  *3799  Transportation Equipment, NEC   
                             Transportation                                      (Except Automobile, Boat,      
                             equipment Manufacturing.                            Utility Light Truck Trailers;  
                                                                                 and Wheelbarrows).             
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E = existing industry, N = new industry; R = revised industry;  
  and *means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                            



                                 Table 2                                
------------------------------------------------------------------------
   1987 SIC code      1987 SIC description      1997 U.S. description   
------------------------------------------------------------------------
2396@..............  Automotive Trimmings,                              
                      Apparel Findings, and                             
                      Related Products:                                 
                       Textile Motor         Motor Vehicle Fabric       
                        Vehicle Trimmings.    Accessory and Seat        
                                              Manufacturing (pt).       
                       Apparel Articles....  Apparel Belt, Apparel      
                                              Accessories, and Other    
                                              Apparel Manufacturing (pt)
                                              (Included in Apparel      
                                              Manufacturing subsector). 
                       Printing on Apparel.  Other Commercial Printing  
                                              (pt) (Included in Printing
                                              and Related Support       
                                              Activities subsector).    
                       Other Automotive      Other Miscellaneous Textile
                        Trimmings, Apparel    Product Manufacturing (pt)
                        Findings, and         (Included in Textile      
                        Related Products.     Product Mills subsector). 
2399...............  Fabricated Textile                                 
                      Products, NEC:                                    
                       Motor Vehicle Seat    Motor Vehicle Fabric       
                        Belts, and Seat and   Accessory and Seat        
                        Tire Cover.           Manufacturing (pt).       
                       Aprons, Money Belts,  Apparel Belt, Apparel      
                        and Diapers.          Accessories and Other     
                                              Apparel Manufacturing (pt)
                                              (Included in Apparel      
                                              Manufacturing subsector). 
                       Other Fabricated      All Other Miscellaneous    
                        Textile Products.     Textile Product Mills (pt)
                                              (Included in Textile      
                                              Product Mills subsector). 
2531@..............  Public Building and                                
                      Related Furniture:                                
                       Seats for Motor       Motor Vehicle Fabric       
                        Vehicles.             Accessory and Seat        
                                              Manufacturing (pt).       
                       Wood Furniture Made   Wood Office and Public     
                        for Use in Public     Building Furniture        
                        Buildings.            Manufacturing (pt)        
                                              (Included in Furniture    
                                              Manufacturing subsector). 
                       Metal Furniture Made  Metal Office and Public    
                        for Use in Public     Building Furniture        
                        Buildings.            Manufacturing (pt)        
                                              (Included in Furniture    
                                              Manufacturing subsector). 
                       Other than Wood or    Other Furniture            
                        Metal Furniture       Manufacturing (pt)        
                        Made for Use in       (Included in Furniture    
                        Public Buildings.     Manufacturing subsector). 
3292...............  Asbestos Products:                                 
                       Asbestos Brake        Motor Vehicle Brake System 
                        Linings and Pads.     Manufacturing (pt).       
                       Other Asbestos        Other Nonmetallic Mineral  
                        Products.             Product Manufacturing (pt)
                                              (Included in Nonmetallic  
                                              Mineral Product           
                                              Manufacturing subsector). 
3465...............  Automotive Stamping...  Motor Vehicle Metal        
                                              Stamping.                 
3519...............  Internal Combustion                                
                      Engines, NEC:                                     
                       Stationary Engine     Other Motor Vehicle Part   
                        Radiators.            Manufacturing (pt).       
                       Internal Combustion   Other Engine Manufacturing 
                        Engines.              (pt) (Included in         
                                              Machinery Manufacturing   
                                              subsector).               
3531@..............  Construction Machinery                             
                      and Equipment:                                    
                       Railway Maintenance   Railroad Rolling Stock     
                        of Way Equipment.     Manufacturing (pt).       
                       Winches, Aerial Work  Overhead Traveling Crane,  
                        Platforms, and        Hoist, and Monorail System
                        Automotive Wreckers   Manufacturing (pt)        
                        Hoists.               (Included in Machinery    
                                              Manufacturing subsector). 
                       Other Construction    Construction Machinery     
                        Machinery and         Manufacturing (Included in
                        Equipment.            Machinery Manufacturing   
                                              subsector).               
3592...............  Caburetors, Pistons,    Carburetor, Piston, Piston 
                      Piston Rings and        Ring and Valve            
                      Valves.                 Manufacturing.            
3599@..............  Industrial and          Other Motor Vehicle Part   
                      Commercial Machinery    Manufacturing (pt).       
                      and Equipment, NEC                                
                      Gasoline, Oil and                                 
                      Intake Filters for                                
                      Internal Combustion                               
                      Engines, Except Motor                             
                      Vehicle.                                          
                       Flexible Metal Hose.  All Other Fabricated Metal 
                                              Product Manufacturing (pt)
                                              (Included in Fabricated   
                                              Metal Product             
                                              Manufacturing subsector). 
                       Carnival Amusement    Other Commercial and       
                        Park Equipment.       Service Industry Machinery
                                              Manufacturing (pt)        
                                              (Included in Machinery    
                                              Manufacturing subsector). 
                       Machine Shops.......  Machine Shops (Included in 
                                              Fabricated Metal Product  
                                              Manufacturing subsector). 
                       Semiconductor         Semiconductor Machinery    
                        Machinery.            Manufacturing (Included in
                                              Machinery Manufacturing   
                                              subsector).               
                       Other Industrial and  Other General Purpose      
                        Commercial            Machinery Manufacturing   
                        Machinery and         (pt) (Included in         
                        Equipment.            Machinery Manufacturing   
                                              subsector).               
3647...............  Vehicular Lighting      Vehicular Lighting         
                      Equipment.              Equipment Manufacturing.  
3679...............  Electronic Components,                             
                      NEC:                                              
                       Electronic Control    Motor Vehicle Electrical   
                        Modular Chips for     and Electronic Equipment  
                        Motor Vehicles        Manufacturing.            
                        Manufacturing (pt).                             
                       Communication         Broadcast and Studio       
                        Equipment.            Equipment for Radio, TV   
                                              and Cable Manufacturing   
                                              (Included in Computer and 
                                              Electronic Product        
                                              Manufacturing subsector). 

[[Page 4577]]
                                                                        
                       Other Electronic      Other Electronic Component 
                        Components            Manufacturing (pt)        
                        Including Loaded PC   (Included in Computer and 
                        Boards.               Electronic Product        
                                              Manufacturing subsector). 
3694...............  Electronic Equipment    Motor Vehicle Electrical   
                      for Internal            and Electronic Equipment  
                      Combustion Engines.     Manufacturing (pt).       
3711@..............  Motor Vehicles and                                 
                      Passenger Car Bodies:                             
                       Passenger Car and     Passenger Car and Light    
                        Light Duty Trucks.    Duty Truck Manufacturing. 
                       Heavy Duty Trucks...  Heavy Duty Truck           
                                              Manufacturing.            
                       Kit Car and Other     Truck and Bus Body and     
                        Passenger Car         Trailer Manufacturing     
                        Bodies.               (pt).                     
                       Military Armored      Military Armored Vehicle,  
                        Vehicles.             Tank, and Tank Component  
                                              Manufacturing (pt).       
3713...............    Truck and Bus Bodies  Truck and Bus Body and     
                                              Trailer Manufacturing     
                                              (pt).                     
3714@..............    Motor Vehicle Parts                              
                        and Accessory:.                                 
                       Dump-Truck Lifting    Truck and Bus Body and     
                        Mechanisms and        Trailer Manufacturing     
                        Fifth Wheels.         (pt).                     
                       Gasoline Engines      Engine and Engine Part     
                        Including Rebuilt     Manufacturing.            
                        and Engine Parts                                
                        Including Rebuilt                               
                        for Motor Vehicles.                             
                       Wiring Harness Sets,  Motor Vehicle Electrical   
                        Other than            and Electronic Equipment  
                        Ignition; Block       Manufacturing (pt).       
                        Heaters and Battery                             
                        Heaters; Instrument                             
                        Board Assemblies;                               
                        Permanent                                       
                        Defroster;                                      
                        Windshield Washer-                              
                        Wiper Mechanisms;                               
                        Cruise Control                                  
                        Mechanism; and                                  
                        Other Electrical                                
                        Equipment for                                   
                        Internal Combustion                             
                        Engines.                                        
                       Steering and          Motor Vehicle Steering and 
                        Suspension Parts.     Suspension Component      
                                              (Except Springs)          
                                              Manufacturing.            
                       Brake and Brake       Motor Vehicle Brake System 
                        Systems, Including    Manufacturing.            
                        Assembles.                                      
                       Transmissions and     Motor Vehicle Transmission 
                        Power Train Parts,    and Power Train Part      
                        Including             Manufacturing.            
                        Rebuilding                                      
                        Radiators.                                      
                       Other Motor Vehicle   Other Motor Vehicle Part   
                        Parts.                Manufacturing (pt).       
3716...............    Motor Homes.........  Motor Home Manufacturing.  
3721...............  Aircraft..............  Aircraft Manufacturing.    
3724...............  Aircraft Engines and    Aircraft Engine and Engine 
                      Engine Parts.           Part Manufacturing.       
3728...............  Aircraft Parts and                                 
                      Auxiliary Equipment,                              
                      NEC:                                              
                       Fluid Power Aircraft  Fluid Power Value and Hose 
                        Subassemblies.        Fitting Manufacturing (pt)
                                              (Included in Fabricated   
                                              Metal Product             
                                              Manufacturing subsector). 
                       Other Aircraft Parts  Other Aircraft Part and    
                        and Equipment.        Auxiliary Equipment       
                                              Manufacturing.            
3731...............  Ship Building and       Skip Building and          
                      Repairing.              Repairing.                
3732...............  Boat Building and                                  
                      Repairing:                                        
                       Boat Repair done      Included in Services       
                        Outside Boat Yard.    subsector.                
                       Boat Building and     Boat Building (pt).        
                        Repair done Inside                              
                        Boat Yard.                                      
3743...............  Railroad Equipment:                                
                       Locomotive Fuel       Pump and Pumping Equipment 
                        Lubricating or        Manufacturing (pt)        
                        Cooling Medium        (Included in Machinery    
                        Pumps.                Manufacturing subsector). 
                       Other Railroad        Railroad Rolling Stock     
                        Equipment.            Manufacturing (pt).       
3751...............  Motorcycles, Bicycles,  Motorcycle, Bicycle, and   
                      and Parts.              Part Manufacturing (pt).  
3761...............  Guided Missiles and     Other Guided Missile and   
                      Space Vehicles.         Space Vehicle             
                                              Manufacturing.            
3764...............  Guided Missile and      Guided Missile and Space   
                      Space Vehicle           Vehicle Propulsion Unit   
                      Propulsion Units and    and Propulsion Unit Part  
                      Propulsion Unit Parts.  Manufacturing.            
3769...............  Guided Missile Space    Guided Missile Space       
                      Vehicle Parts and       Vehicle Parts and         
                      Auxiliary Equipment,    Auxiliary Equipment       
                      NEC.                    Manufacturing.            
3792...............  Travel Trailers and     Travel Trailer and Camper  
                      Campers.                Manufacturing (pt).       
3795...............  Tanks and Tank          Military Armored Vehicle,  
                      Components.             Tank, and Tank Component  
                                              Manufacturing (pt).       
3799@..............  Transportation                                     
                      Equipment, NEC:                                   
                       Automobile, Boat,     Travel Trailer and Camper  
                        Utility and Light     Manufacturing (pt).       
                        Truck Trailers.                                 
                       Wheelbarrows........  Hand and Edge Tool         
                                              Manufacturing (pt)        
                                              (Included in Fabricated   
                                              Metal Product             
                                              Manufacturing subsector). 
                       Other Transportation  Other Miscellaneous        
                        Equipment.            Transportation Equipment  
                                              Manufacturing.            
3944...............  Games, Toys, and        .                          
                      Children's Vehicles,                              
                      Except Dolls and                                  
                      Bicycles:                                         
                       Metal Tricycles.....  Motorcycle, Bicycle and    
                                              Part Manufacturing (pt).  
                       Other Games, Toys     Game, Toy, and Children's  
                        and Children's        Vehicle Manufacturing (pt)
                        Vehicles.             (Included in Miscellaneous
                                              Manufacturing subsector). 
------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of''; @ means time series break has
  been created that is greater than 3% of the 1992 value of shipments   
  for the 1987 SIC industry. The abbreviation NEC is used for Not       
  Elsewhere Classified.                                                 



Description of Changes to the U.S. System

    A number of the changes listed in this section were made for 
reasons of international comparability. Where one or more of the three 
North American countries had different definitions of an industry 
classification, adjustments to the definitions in one or more countries 
were required. In constructing NAICS, the three countries agreed to 
move, where change was required to attain international comparability, 
in the direction of the country or countries whose existing 
classification definitions most closely corresponded to the production-
oriented concept adopted for NAICS. Cases where the U.S. 

[[Page 4578]]
changed are listed below; other cases where Canada or Mexico moved 
toward the U.S. classification are not, of course, listed in this 
section.
    Eight new industries were added to the 1997 industry structure for 
this industry subsector. The eight industries created were:
    Passenger Car and Light Duty Truck Manufacturing and Heavy Duty 
Truck Manufacturing, both from parts of 1987 SIC 3711, Motor Vehicles 
and Passenger Car Bodies. The industry association suggested making 
additional industries from 1987 SIC 3711. The new industries are 
defined by high specialization, and in the case of Passenger Car and 
Light Duty Truck Manufacturing, large capital-intensive production 
facilities. This is a change for all three countries.
    Engine and Engine Part Manufacturing, Motor Vehicle Steering and 
Suspension Component (Except Springs) Manufacturing, and Motor Vehicle 
Transmission and Power Train Part Manufacturing from parts of 1987 SIC 
3714, Motor Vehicle Parts and Accessories. The industry suggested 
making additional industries from 1987 SIC 3714 and the production 
processes are sufficiently distinct to justify separate industries. 
Mexico already had separate industries for engines and for transmission 
and power trains, and Canada had a separate industry for steering and 
suspension so the U.S. change also facilitated international 
comparability.
    Motor Vehicle Brake System Manufacturing from parts of 1987 SIC 
3292, Asbestos Products, and 1987 SIC 3714, Motor Vehicle Parts and 
Accessories, to achieve international comparability. Mexico and Canada 
already had separate industries for brake system manufacturing.
    Motor Vehicle Fabric Accessory and Seat Manufacturing from parts of 
1987 SIC 2396, Automotive Trimmings, Apparel Findings, and Related 
Products; 1987 SIC 2399, Fabricated Textile Products, NEC; and 1987 SIC 
2531, Public Building and Related Furniture. This change was made for 
international comparability, and is an improvement on production 
grounds.
    1987 SIC 3694, Electrical Equipment for Internal Combustion 
Engines, is combined with part of 1987 SIC 3679, Electronic Components, 
NEC, and part of 1987 SIC 3714, Motor Vehicle Parts and Accessories, to 
form NAICS Electrical Equipment for Internal Combustion Engine 
Manufacturing.
    Three industries were transferred into NAICS Transportation 
Equipment Manufacturing:
    1987 SIC 3465, Automotive Stampings, is renamed Motor Vehicle Metal 
Stamping to achieve international comparability and for the reasons 
noted in the Changes to National Classifications section above. The 
United States moved to match Canada and Mexico.
    1987 SIC 3592, Carburetors, Pistons, Piston Rings and Valves, is 
renamed Carburetor, Piston, Piston Ring and Valve Manufacturing to 
achieve international comparability. Canada had these in CSIC 32, 
Transportation Equipment Industries.
    1987 SIC 3647, Vehicular Lighting Equipment, is renamed Vehicular 
Lighting Equipment Manufacturing to achieve international 
comparability. Canada had this in CSIC MG 32, Transportation Equipment.
    Also, four activities were transferred into the 1997 Transportation 
Equipment Manufacturing.
    Stationary engine radiators from 1987 SIC 3519, Internal Combustion 
Engines, NEC, to Other Motor Vehicle Part Manufacturing, to achieve 
international comparability. The U.S. and Mexico moved to match Canada, 
because the production of radiators is a similar process whether for 
stationary or nonstationary engines.
    Gasoline, oil and intake filters for internal combustion engines, 
except those for motor vehicles, from 1987 SIC 3599, Industrial and 
Commercial Machinery and Equipment, NEC, to Other Motor Vehicle Part 
Manufacturing, to achieve international comparability. The U.S. moved 
to match Canada and Mexico, because the production of filters is a 
similar process whether for stationary or non stationary engines.
    Railway maintenance of way equipment from 1987 SIC 3531, 
Construction Machinery and Equipment, to Railroad Rolling Stock 
Manufacturing, to achieve international comparability. The U.S. moved 
to match Canada and Mexico.
    Tricycles made primarily of metal from 1987 SIC 3944, Games, Toys, 
and Children's Vehicles, Except Dolls and Bicycles, to Motorcycle, 
Bicycle, and Part Manufacturing, to achieve international 
comparability. The U.S. and Canada moved to match Mexico. Plastic 
tricycles remain in toy manufacturing.
    Three activities were transferred out of 1987 Major Group 37, 
Transportation Equipment Manufacturing, and are described more fully in 
their new respective NAICS subsectors.
    Boat repair done outside boat yards was transferred from 1987 SIC 
3732, Boat Building and Repairing, into the Services subsector.
    Locomotive fuel lubricating or cooling medium pumps were 
transferred from 1987 SIC 3743, Railroad Equipment, into the Machinery 
Manufacturing subsector.
    Wheelbarrows from 1987 SIC 3799, Transportation Equipment, NEC, 
were transferred into Hand and Edge Tool Manufacturing in the 
Fabricated Metal Product Manufacturing subsector.
    Several activities were transferred within the Transportation 
Equipment Manufacturing subsector. The number of transportation 
equipment industries increased from 18 in 1987 to 28 in 1997. For time 
series linkage, all but 3 of the 18 1987 industries are comparable 
within three percent of the 1997 industries. One of the three is an NEC 
industry.
Sally Katzen,
Administrator, Office of Information and Regulatory Affairs.
[FR Doc. 96-2139 Filed 2-5-96; 8:45 am]
BILLING CODE 3110-01-P