[Federal Register Volume 61, Number 103 (Tuesday, May 28, 1996)]
[Notices]
[Pages 26558-26668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13039]




[[Page 26557]]


_______________________________________________________________________

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. 103 / Tuesday, May 28, 1996 / 
Notices  

[[Page 26558]]



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 fifth related to preparation of NAICS and the 
third in a series seeking comment on proposed industry structures, 
presents the proposed industry structure for the NAICS subsectors 
listed in the Supplementary Information section below. This notice also 
presents alternatives for the NAICS coding system.
    OMB is seeking comments on the usefulness and advisability of the 
proposed new NAICS subsectors submitted by the Economic Classification 
Policy Committee (ECPC), an interagency committee established by OMB, 
and on the NAICS coding system.
    The next Federal Register notice will present the entire structure 
of NAICS and seek comment on that structure and other industry sectors 
and subsector proposals. NAICS is being developed in cooperation with 
Statistics Canada and Mexico's Instituto Nacional de Estadistica, 
Geografia e Informatica (INEGI). The new NAICS system provides common 
industry definitions for Canada, Mexico, and the United States to 
facilitate economic analyses that cover the economies of the three 
North American countries. The three country collaboration on an 
industry classification system for North America was announced for 
public comment in the Federal Register, July 26, 1994, pp. 38092-38096.
     The July 26, 1994 Federal Register notice includes the concepts 
for the new system, as developed by Statistics Canada, Mexico's INEGI, 
and the ECPC. It also includes a copy of the joint statement of the 
three countries' statistical agencies regarding the development of 
NAICS. That agreement includes the following principles:
    (1) NAICS will be erected on a production-oriented, or supply-
based, conceptual framework. This means that producing units that use 
identical or similar production processes will be grouped together in 
NAICS.
    (2) The system will give special attention to developing 
production-oriented classifications for (a) new and emerging 
industries, (b) service industries in general, and (c) industries 
engaged in the production of advanced technologies.
    (3) Time series continuity will be maintained to the extent 
possible. However, changes in the economy and proposals from data users 
must be considered. In addition, adjustments will be required for 
sectors where the United States, Canada, and Mexico presently have 
incompatible industry classification definitions in order to produce a 
common industry system for all three North American countries.
    (4) The system will strive for compatibility with the 2-digit level 
of the International Standard Industrial Classification of All Economic 
Activities (ISIC, Rev. 3) of the United Nations.
    ECPC Report No. 3, Summary of Public Responses to the Proposed New 
North American Industry Classification System, provides a summary of 
public comments received in response to the July 26, 1994, Federal 
Register notice.
    A notice was published in the Federal Register, July 26, 1995, pp. 
38436-38452, requesting comment on proposed industry structures for 
petroleum and coal product manufacturing, chemical manufacturing, and 
rubber and plastic manufacturing; for broadcasting and 
telecommunications; and for food services and drinking places and 
accommodations. A Federal Register notice was published on February 6, 
1996, pp. 4524-4578, requesting comment on proposed industry structures 
for crop production, animal production, forestry and logging, fishing, 
hunting, and trapping, and support activities for agriculture and 
forestry; textile mills, textile product mills, apparel manufacturing, 
and leather and allied product manufacturing; food manufacturing and 
beverage and tobacco product manufacturing; fabricated metal product 
manufacturing; machinery manufacturing; electrical equipment, 
appliance, and component manufacturing; and transportation equipment 
manufacturing.

DATES: To ensure consideration and response to all comments on the 
proposals set forth in this notice, comments must be in writing and 
should be submitted as soon as possible, but no later than July 29, 
1996. This proposed industry system would become effective in the U.S. 
on January 1, 1997.

ADDRESSES: Correspondence about the industry proposals of the NAICS 
structure announced in this Federal Register notice should be sent to: 
Carole A. Ambler, Coordinator, Economic Classification Policy 
Committee, Bureau of the Census, U.S. Department of Commerce, Room 
2633-3, Washington, DC 20233, telephone number: (301) 457-2668, FAX 
number: (301) 457-1343.
    Correspondence about the NAICS numbering system should be sent to: 
Jack E. Triplett, Chairman, Economic Classification Policy Committee, 
Bureau of Economic Analysis (BE-42), U.S. Department of Commerce, 
Washington, DC 20230, telephone number: (202) 606-9615, FAX number: 
(202) 606-5311. Copies of all ECPC issues papers, previous Federal 
Register notices, and ECPC reports are available from the same address.

ELECTRONIC AVAILABILITY AND COMMENTS: This document is available on the 
Internet from the Census Bureau via WWW browser, ftp, and E-mail.
     To obtain this document via WWW browser, connect to ``http://
www.census.gov'' then select ``Economy,'' then select ``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 dates specified above will be 
included as part of the official record.

FOR FURTHER INFORMATION CONTACT: Carole A. Ambler, Coordinator, 
Economic Classification Policy Committee, Bureau of the Census, U.S. 
Department of Commerce, Room 2633-3, Washington, DC 20233, telephone

[[Page 26559]]

number: (301) 457-2668, FAX number: (301) 457-1343.

SUPPLEMENTARY INFORMATION:

Structure of Notice

    There are 20 parts to this notice. Part I includes the proposals 
for health and social assistance; Part II includes educational 
services; Part III includes computer and electronic product 
manufacturing; Part IV includes furniture manufacturing; Part V 
includes printing and related support activities; Part VI includes 
professional, scientific, and technical services; Part VII includes 
performing arts, spectator sports and related industries, museums, 
historical sites and similar institutions, and recreation, amusement, 
and gambling; Part VIII includes information; Part IX includes wood 
product manufacturing, except furniture; Part X includes rental and 
leasing; Part XI includes repair and maintenance; Part XII includes 
management and support; Part XIII includes transportation; Part XIV 
includes retail and wholesale trade; Part XV includes mining; Part XVI 
includes paper manufacturing; Part XVII includes nonmetallic mineral 
manufacturing; Part XVIII includes primary metal manufacturing; Part 
XIX includes miscellaneous manufacturing; and Part XX includes postal 
service and couriers.
    Each of the 20 parts of the notice is organized into two sections. 
The first section includes a copy of the proposed agreement signed by 
the ECPC, Statistics Canada, and INEGI; the structure of NAICS; and an 
explanation of the structure. For a number of reasons, NAICS industries 
do not always provide as much industry detail as has been present in 
the U.S. SIC. Each country may add additional detailed industries, 
below the industry level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a NAICS industry in 
order to ensure full comparability among the three countries. The 
proposed United States NAICS system would include U.S. national 
industries. These represent important industries in the U.S. that 
cannot be recognized in the statistical systems of either Canada or 
Mexico because of size restrictions, confidentiality or other reasons. 
The second section of each part includes the U.S. detailed industries 
within NAICS and two comparison tables showing the differences between 
the 1987 SIC and the 1997 NAICS with United States detail.
    The NAICS numbering system is still under development; therefore 
the hierarchical structure is displayed in this document with X's 
representing the following:

X  Industry Sector
XX  Industry Subsector
XXX  Industry Group
XXXX  Industry
XXXXX  U.S. National Industry

    The terms ``Industry Sector'' and ``Industry Subsector'' are 
changes from the terms ``Division'' and ``Major Group'' used in the 
1987 SIC manual.

NAICS Coding System: Issue for Comment

    The ECPC is requesting public comment on two alternatives for a 
NAICS coding system--a 5-character alphanumeric system and a 6-
character, all numeric system. In the initial stages of its review, the 
ECPC was informed that the computer systems of some U.S. statistical 
agencies could not accommodate six characters, which ruled out 
consideration of a 6-character system. Further investigation has 
indicated, however, that 6-character fields are possible and may offer 
certain advantages.

Background

    NAICS is organized in a hierarchical structure, much like the 
existing U.S. SIC. The 1987 SIC employed a 4-digit coding system, in 
which the first two digits designate what in NAICS is known as a 
``subsector,'' the third digit designates the industry group, and the 
fourth digit designates the industry. For example, in the 1987 SIC, the 
two digits 26 designate the manufacture of ``Paper and Allied 
Products,'' within which the digits 262 designate an industry group 
titled ``Paper Mills,'' which contains one 4-digit industry, SIC 2621, 
also titled ``Paper Mills.''
    The NAICS coding system must be expanded beyond the four digits 
used in the SIC for two reasons. First, the NAICS agreements among the 
ECPC, INEGI, and Statistics Canada permit each country to designate 
detailed industries, below the level of a NAICS industry, to meet 
national needs. The United States will have such national industry 
detail in many places in the new classification, and this national 
detail can only be accommodated by expanding the coding system to at 
least five characters. This national industry detail has been shown 
schematically in previous Federal Register notices.
    Second, it is desirable that the first character or characters in a 
coding system designate the sector (the term ``industry sector'' is 
replacing the term ``division'' used in the 1987 SIC). A modern economy 
is too complex to be described adequately if the first character of the 
coding system restricts the number of sectors to nine or ten. The ECPC, 
INEGI, and Statistics Canada are proposing that NAICS have 18 industry 
sectors. Accordingly, either the first character of the coding system 
must be a letter, rather than a number, or two digits must be used to 
designate the sector in NAICS.
    The foregoing considerations lead to two options for the coding 
system in NAICS:
    (1) A 5-character, alphanumeric coding system, in which the first 
character (a letter) designates the NAICS sector, and the second, 
third, fourth, and fifth numerical characters designate, respectively, 
the subsector, industry group, NAICS industry, and U.S. national 
industry (if any).
    (2) A 6-character, all numeric coding system, in which the first 
two digits designate the NAICS sector, and the third, fourth, fifth, 
and sixth digits designate, respectively, the subsector, industry 
group, NAICS industry, and U.S. national industry (if any).
    To illustrate the differences between the two coding systems, the 
following table shows a portion of the proposed NAICS structure, with 
U.S. national detail, for two manufacturing subsectors, and for one 
non-manufacturing subsector. In the example, hypothetical 5-character 
and 6-character coding systems are displayed for illustration (the 
actual positions of these subsectors in the classification system, and 
hence the actual codes to be assigned to them, will be determined 
later).

    Illustrative Portion of the NAICS Structure, Showing Hypothetical   
                       Alternative Coding Systems                       
------------------------------------------------------------------------
                                                            6-character 
                                         5-character        all numeric 
                                     alphanumeric system      system    
------------------------------------------------------------------------
Manufacturing.....................  E, F, G                   21, 22, 23
  Food Manufacturing..............  E1                               211
    Animal Food Manufacturing.....  E11                             2111

[[Page 26560]]

                                                                        
      Animal Food Manufacturing...  E111                           21111
        Dog and Cat Food            E1111                         211111
         Manufacturing.                                                 
        Other Animal Food           E1112                         211112
         Manufacturing.                                                 
    Grain and Oilseed Milling.....  E12                             2112
      Flour Milling and Malt        E121                           21121
       Manufacturing.                                                   
        Flour Milling.............  E1211                         211211
        Rice Milling..............  E1212                         211212
        Malt Manufacturing........  E1213                         211213
      Starch and Vegetable Fats     E122                           21122
       and Oils Manufacturing.                                          
        Soybean Processing........  E1221                         211221
        Wet Corn Milling..........  E1222                         211222
        Other Oilseed Processing..  E1223                         211223
        Edible Fats and Oils        E1224                         211224
         Manufacturing.                                                 
      Breakfast Cereal              E123                           21123
       Manufacturing.                                                   
    Sugar and Confectionery         E13                             2113
     Product Manufacturing.                                             
          (Classification           ...                              ...
           continues).                                                  
  Textile Mills...................  E2                               212
    Fibre, Yarn, and Thread Mills.  E21                             2121
      Fiber, Yarn, and Thread       E211                           21211
       Mills.                                                           
        Yarn Spinning Mills.......  E2111                         212111
        Yarn Texturing, Throwing,   E2112                         212112
         and Twisting Mills.                                            
        Thread Mills..............  E2113                         212113
    Fabric Mills..................  E22                             2122
      Broadwoven Fabric Mills.....  E221                           21221
      Narrow Fabric Mills and       E222                           21222
       Schiffli Machine                                                 
       Embroideries.                                                    
        Narrow Fabric Mills.......  E2221                         212221
        Schiffli Machine            E2222                         212222
         Embroideries.                                                  
      Nonwoven Fabric Mills.......  E223                           21223
      Knit Fabric Mills...........  E224                           21224
        Weft Knit Fabric Mills....  E2241                         212241
        Other Knit Fabric and Lace  E2242                         212242
         Mills.                                                         
        (Classification continues)  ...                              ...
  Computer and Electronic Product   F1                               221
   Manufacturing.                                                       
    Computer and Peripheral         F11                             2211
     Equipment Manufacturing.                                           
      Computer and Peripheral       F111                           22111
       Equipment Manufacturing.                                         
        Electronic Computer         F1111                         221111
         Manufacturing.                                                 
        Computer Storage Device     F1112                         221112
         Manufacturing.                                                 
        Computer Terminal           F1113                         221113
         Manufacturing.                                                 
        Other Computer Peripheral   F1114                         221114
         Equipment Manufacturing.                                       
    Communication Equipment         F12                             2212
     Manufacturing.                                                     
      Telephone Apparatus           F121                           22121
       Manufacturing.                                                   
      Broadcast and Studio                                              
       Equipment for Radio, TV,                                         
       and.                                                             
      Cable Manufacturing.........  F122                           22122
      Other Communication           F123                           22123
       Equipment Manufacturing.                                         
    Audio and Video Equipment       F13                             2213
     Manufacturing.                                                     
        (Classification continues)  ...                              ...
Information.......................  J                                 71
  Publishing......................  J1                               711
    Newspaper, Periodical, Book     J11                             7111
     and Database Publishing.                                           
      Newspaper Publishing........  J111                           71111
      Periodical Publishing.......  J112                           71112
      Book Publishing.............  J113                           71113
      Database Publishing.........  J114                           71114
      Other Publishing............  J115                           71115
        Greeting Card Publishing..  J1151                         711151
        All Other Publishing......  J1152                         711152
          (Classification           ...                              ...
           continues).                                                  
------------------------------------------------------------------------



Advantages and Disadvantages of the Two Options

6-Character All Numeric System

Advantages
     An all numeric code can be key-punched more efficiently, 
i.e., more quickly and accurately. First, a 6-character all numeric 
code can be keyed faster than a 5-character alphanumeric one. Second, 
an all numeric code can more readily be verified by the computer system 
with a check-digit. Third, an all numeric code is less subject to 
misinterpretation since numerals are more distinct than certain letters 
(e.g., E & F, M & N, or U & V) even if letters such as I, O, and S are 
omitted because of their similarity to certain numerals. These 
productivity advantages reduce the cost of key-punching, compared with 
a 5-character alphanumeric system. This is the

[[Page 26561]]

primary advantage of a 6-character, all numeric system to Government 
agencies.
     Using an all numeric system allows more flexibility for 
future expansion of NAICS industry sectors. Under a 5-character 
alphanumeric system, NAICS would use 22 letters of the alphabet (18 
NAICS industry sectors, plus four extra letters for industry sectors, 
such as Manufacturing, that contain more than ten subsectors). 
Eliminating the three or four letters that are similar to numerals 
leaves essentially no room for expansion of the number of NAICS 
industry sectors under the 5-character alphanumeric proposal, whereas 
the 6-character all numeric system would permit future expansion of 
NAICS industry sectors.
     Most other industry classification systems used throughout 
the world are all numeric, though most of them are 4- or 5-digit 
systems.
Disadvantages
     Some of the numerical codes used in the 1987 SIC would be 
reused for NAICS, but they would describe different levels of 
aggregation of different industries compared to their use in the 1987 
SIC. Even though at any given number of digits, the codes will 
designate different levels in the two classification systems, reusing 
codes could lead to some initial confusion about the meaning of a given 
code. For example, using the hypothetical codes shown above, NAICS code 
2111 could represent the industry group for Animal Food Manufacturing, 
which contains one NAICS industry and two U.S. national industries, 
while the 1987 SIC code 2111 represents the 4-digit industry for the 
manufacture of cigarettes.
     Because expanding a field can be expensive for existing 
database systems, some users may prefer a 5-character field to one that 
requires 6-characters, especially since, of the 99 available initial 
two-digits in a 6-character system, NAICS will only use 22 of them (18 
NAICS sectors, plus four extra initial digit pairs for industry 
sectors, such as Manufacturing, that contain more than ten subsectors).

5-Character Alphanumeric System

Advantages
     Only 5-character fields must be carried in government and 
nongovernment data bases thereby potentially lessening database-related 
transition costs to the new system. However, since the field would need 
to be changed from a numeric to an alphanumeric one, the extent of 
potential savings is not clear.
     A 5-character system beginning with a letter provides for 
unique codes as compared to the 1987 SIC. This will help minimize 
initial confusion between the new and old systems.
Disadvantages
     A 5-character alphanumeric system is expected to impose 
substantially higher data entry costs on the U.S. statistical agencies 
responsible for industry coding. Key-punching of 5-character 
alphanumeric industry codes takes longer and is less accurate than a 6-
character all numeric system for the reasons discussed above under 
advantages of the 6-character system.
     Using a 5-character alphanumeric system permits 
essentially no flexibility for future expansion of NAICS industry 
sectors. Under a 5-character alphanumeric system, NAICS would use 22 
letters of the alphabet (18 NAICS industry sectors, plus four more 
letters for industry sectors, such as Manufacturing, that contain more 
than ten subsectors). Eliminating the three or four letters that are 
similar to numerals leaves essentially no room for expansion of the 
number of NAICS industry sectors under the 5-character alphanumeric 
proposal, whereas the 6-character all numeric system would permit 
future expansion of NAICS industry sectors.

Disadvantages of Both Systems

     With either coding system, multiple initial characters 
must be used for large sectors, such as manufacturing, transportation, 
and wholesale and retail trade. Manufacturing, for example, has 21 
subsectors in NAICS, so that the 5-character alphanumeric system will 
require three letters to designate manufacturing and the 6-character 
all numeric system will require three sets of 2-digit codes. This is an 
inconvenience in working with the system because tabulating 
manufacturing will require entering three letters or three 2-digit 
codes, rather than just one. However, this characteristic is also 
present in the 1987 SIC system (where initial digits 2 and 3 designate 
manufacturing).
     In public comments to the ECPC, some users have requested 
a more ``user friendly'' coding system than the present 4-digit SIC. 
Neither of the two systems is an improvement in this respect.

ECPC Proposal: Request for Comment

    The ECPC is proposing the adoption of the 6-character, all numeric 
coding system for NAICS. The principal reasons for this proposal are 
the additional key-punching costs to Government agencies if an 
alphanumeric system were to be adopted as well as the flexibility for 
future expansion that a 6-character system permits. Other advantages 
and disadvantages of one coding system over the other seem less 
compelling because they are more or less offsetting. Of the other 
countries that are partners in NAICS, Statistics Canada has indicated a 
strong preference for an all numeric system, and INEGI (which now uses 
a 6-character numeric system for its industry classification system) 
has indicated that either system would be acceptable. The ECPC requests 
comments on its proposal to adopt the 6-digit coding system.

Time Series Summary

    The standard approach to preserving time series continuity after 
classification revisions is to create linkages where the series break. 
This is accomplished by producing the data series using both the old 
and new classifications for a given period of transition. With the dual 
classifications of data, the full impact of the revision can be 
assessed. Data producers then may measure the reallocation of the data 
at aggregate industry levels and develop a concordance between the new 
and old series for that given point in time. The concordance creates a 
crosswalk between the old and new classification systems. This link 
between the 1987 U.S. SIC and NAICS (with U.S. national detail) will be 
developed by the statistical agencies in the U.S.

Outreach Activities

    OMB and the Economic Classification Policy Committee (ECPC) are 
seeking comments on the proposed NAICS structure for the industries 
described in this notice. In carrying out its mandate to ensure maximum 
public participation in the process of constructing NAICS, the ECPC has 
already discussed many of these industry proposals with industry and 
user groups and will continue to do so. In addition, the ECPC is 
replying, on a flow basis as soon as the work is completed for industry 
subsectors, to respondents to previous Federal Register notices. Thus, 
this Federal Register notice supplements other ECPC public outreach 
activities in the development of NAICS.

Part I--Proposed New Industry Structure for Ambulatory Health Care 
Services, Hospitals, Nursing and Residential Care Facilities, and 
Social Assistance

Section A--NAICS Structure

North American Industry Classification System

[[Page 26562]]

(NAICS)
Agreement Number 11

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

Ambulatory Health Care Services
Hospitals
Nursing and Residential Care Facilities
Social Assistance

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on September 27, 1995--September 29, 1995 in 
Mexico City, Mexico.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    9/29/95
Mexico..............................  /S/ Enrique Ordaz......    9/29/95
United States.......................  /S/ Jack E. Triplett...    9/29/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Ambulatory Health Care Services
XXX  Offices of Physicians
XXXX  Offices of Physicians
XXX  Offices of Dentists
XXXX  Offices of Dentists
XXX  Offices of Other Health Practitioners
XXXX  Offices of Chiropractors
XXXX  Offices of Optometrists
XXXX  Offices of Mental Health Practitioners, except Physicians
XXXX  Offices of Physical, Occupational, and Speech Therapists and 
Audiologists
XXXX  Offices of All Other Health Practitioners
XXX  Outpatient Care Facilities
XXXX  Family Planning Centers
XXXX  Outpatient Mental Health Facilities
XXXX  Other Outpatient Care Facilities
XXX  Medical and Diagnostic Laboratories
XXXX  Medical and Diagnostic Laboratories
XXX  Home Health Care Services
XXXX  Home Health Care Services
XXX  Miscellaneous Ambulatory Health Care Services
XXXX  Ambulance Services
XXXX  Other Miscellaneous Ambulatory Health Care Services
XX  Hospitals
XXX  General Medical and Surgical Hospitals
XXXX  General Medical and Surgical Hospitals
XXX  Psychiatric and Substance Abuse Hospitals
XXXX  Psychiatric and Substance Abuse Hospitals
XXX  Specialty Hospitals, Except Psychiatric and Substance Abuse 
Hospitals
XXXX  Specialty Hospitals, Except Psychiatric and Substance Abuse 
Hospitals
XX  Nursing and Residential Care Facilities
XXX  Nursing Care Facilities
XXXX  Nursing Care Facilities
XXX  Mental Health, Mental Retardation, and Substance Abuse 
Facilities
XXXX  Mental Retardation Facilities
XXXX  Mental Health and Substance Abuse Facilities
XXX  Community Care Facilities for the Elderly
XXXX  Community Care Facilities for the Elderly
XXX  Other Residential Care Facilities
XXXX  Other Residential Care Facilities
XX  Social Assistance
XXX  Individual and Family Services
XXXX  Child and Youth Services
XXXX  Services for the Elderly and Persons with Disabilities
XXXX  Other Individual and Family Services
XXX  Community Food, Shelter, and Emergency and Relief Services
XXXX  Community Food Services
XXXX  Community Housing Services
XXXX  Emergency and Other Relief Services
XXX  Job Training and Vocational Rehabilitation Services
XXXX  Job Training and Vocational Rehabilitation Services
XXX  Child Day-care Services
XXXX  Child Day-care Services

Attachment 2--North American Industry Classification System

    Draft Classification for:

Ambulatory Health Care Services
Hospitals
Nursing and Residential Care Facilities
Social Assistance

    Representatives of the statistical agencies of Canada, Mexico and 
the United States agree to a draft classification for these industries.
    The draft classification constitutes the sector Health and Social 
Assistance. The sector is subdivided into 4 subsectors, 18 industry 
groups, and 30 industries.

A General Outline

    The health and social services industries provide health care and 
social assistance for individuals. Because it is sometimes difficult to 
distinguish between the boundaries of health care and social 
assistance, these industries are grouped together in a new Health and 
Social Assistance sector. The industries are arranged in order from 
those providing the most intensive type of health care to those 
providing minimal health care with social assistance to those providing 
only social assistance to individuals.
    Industries in the Ambulatory Health Care Services subsector provide 
health care services directly or indirectly to ambulatory patients and 
do not usually provide inpatient overnight services. Health 
practitioners in this subsector provide outpatient services, with the 
facilities and equipment not usually being the most significant part of 
the production process.
    The Hospitals subsector includes establishments that provide 
medical, diagnostic, and treatment services that include physician, 
nursing and other health services to inpatients and the specialized 
accommodation services required by inpatients. Hospitals also may 
provide outpatient services as a secondary activity. Establishments in 
the Hospitals subsector provide inpatient health services, many of 
which can only be provided using the specialized facilities and 
equipment that form a significant and integral part of the production 
process.
    The Nursing and Residential Care Facilities subsector includes 
establishments that provide residential care combined with either 
nursing, supervisory or other types of care as required by the 
residents. In this subsector, the facilities are a significant part of 
the production process and the care provided is a mix of health and 
social services with the health services being largely some level of 
nursing services.
    The Social Assistance subsector includes establishments that 
provide a wide variety of assistance services directly to their 
clients. These services do not include residential or accommodation 
services except on a short stay basis.

Limitations and Constraints of the Classification

    The draft classification avoids the problem of the delineation of 
the boundary between health and social services by incorporating both 
into a continuum.
    General Medical and Surgical Hospitals is a very large industry 
group. NAICS developers considered subdividing this NAICS industry; 
however, research indicated a wide range of services are typically 
provided at general medical and surgical hospitals. Some hospitals 
provide specific advanced medical procedures such as organ transplants 
that require skilled specialists and special equipment for the 
operating and recovery phases of the procedures. Other hospitals may 
offer the same or different advanced medical procedures

[[Page 26563]]

with their corresponding technologies, along with the less specialized 
services and less sophisticated technologies that are offered by 
virtually all hospitals. The mix of services and technologies among 
hospitals varies significantly along this continuum, but no clear basis 
for differentiating among general and surgical hospitals based on their 
mix of services or technological threshold was found.

Relationship to ISIC

    All of the 30 industries included in these subsectors are contained 
within Division 85, Health and Social Work, in the current 
International Standard Industrial Classification of All Economic 
Activities (ISIC, Revision 3) of the United Nations. ISIC Division 85, 
however, includes veterinary services; in NAICS, veterinary services 
are in the Professional, Scientific, and Technical Services subsector.

Some Changes to the National Classifications

    Changes to the Canadian SIC include splitting CSIC 8621, Homes for 
Personal and Nursing Care, into Nursing Care Facilities and Community 
Care Facilities for the Elderly, and expanding CSIC 8646, Meal Services 
(Non-Commercial), to include a broader range of food services in the 
new industry Community Food Services. Community Housing Services and 
Emergency and Other Relief Services are essentially new industries for 
Canada. Air ambulance services move out of CSIC 4513, Non-Scheduled Air 
Transport, Specialty Industry, to Ambulance Services. CSIC 8689, Other 
Health Laboratories, moves out of this sector. CSIC 8693, Health Care 
Research Agencies, moves out of this sector.
    For Mexico, the new Health and Social services sector represents 
the grouping of medical and social assistance classified in CMAP groups 
9231, Medical, Dental, and Veterinary Services (Private Sector); 9232, 
Medical, Dental, and Veterinary Services (Public Sector); 9241, Social 
Security Services (Private Sector); and 9242, Social Security Services 
(Public Sector). Veterinary services are no longer included in this 
sector. A distinction is made between the public and private sector in 
CMAP for both health and social services. Because this distinction is 
not maintained in NAICS, it will be made by Mexico at the national 
industry level.
    For the United States, there is a major change to 1987 SIC's 8011, 
Offices and Clinics of Doctors of Medicine, and 8031, Offices and 
Clinics of Doctors of Osteopathy. NAICS industry Offices of Physicians 
now includes both doctors of medicine and doctors of osteopathy. The 
1987 distinction between the two types of doctors has been eliminated 
to recognize the convergence of the two types of medical service. The 
training and the specialties in which the doctors of medicine and 
doctors of osteopathy are engaged in many cases are the same and it is 
more and more common for the two types of doctors to practice together. 
The U.S. will define a separate national industry for physicians who 
practice mental health specialties. In addition to this change to 1987 
SIC's 8011 and 8031, HMO medical centers and ambulatory surgical and 
free-standing emergency centers have been moved to NAICS industry Other 
Outpatient Care Facilities. The U.S. will recognize separate industries 
for these activities in its national detail. Another major change is 
the transfer of ambulance services from 1987 SIC's 4119, Local 
Passenger Transportation, Not Elsewhere Classified, and 4522, Air 
Transportation, Nonscheduled, into Ambulatory Health Care Services. The 
medical services included in the Ambulance Services industry are judged 
to be of greater significance than the vehicle used and the 
significance of the medical service dwarfs the transportation service 
also provided. Dental Laboratories, 1987 SIC 8072, are moved from the 
medical subsector to the Miscellaneous Manufacturing subsector, because 
making dentures, crowns, bridgework and artificial teeth is similar to 
other manufacturing processes classified there.

Achievements of Objectives

    The classification meets the objectives for the North American 
Industry Classification System (NAICS). It is comprised of industries 
that group establishments with similar production processes, that is, 
it applies the production-oriented economic concept. In the main, the 
hierarchical structure of the classification also follows the 
production concept.
    The classification achieves comparability for the three 
participating countries. All countries agree on the definitions of the 
industries.
    Other objectives of the NAICS project have also been met. New 
industries that recognize current health and social service 
establishments have been established. New and emerging service 
industries have been created, especially in the area of social 
assistance.
    The industries are economically significant. Some NAICS industries 
are much larger than others, but this was necessary to ensure 
comparability among the countries or because it was not possible to 
further subdivide large industries.
    Finally, disruptions to time series, while they exist, have been 
minimized to the extent possible. Most of the changes to time series 
reflect the changing structure of health care across the three 
countries. For the U.S., additional changes have been made to the 
national detail to reflect these changes.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the four NAICS industry 
subsectors presented in Part 1, Section A--Attachment 1, contain less 
detail than is currently in the U.S. SIC system, and less detail than 
is required to meet important analytical requirements in the U.S. The 
three country agreement on NAICS envisions that each country may 
develop national detailed industries below the NAICS industry level, so 
long as the national detail can be aggregated to the NAICS 
classification, thus assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the four 
NAICS industry subsectors covered in Part I of this notice. For cases 
where no 5-digit detail is shown, the ECPC is proposing that the NAICS 
4-digit industries will also represent the most detailed U.S. 
industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Ambulatory Health Care                                                                     
                      Services:                                                                                 
XXX................    Offices of Physicians:                                                                   
XXXX...............     Offices of Physicians:                                                                  

[[Page 26564]]

                                                                                                                
XXXXX..............      Offices of Physicians      N                   *8011  Offices and Clinics of Doctors of
                          except Mental Health                                  Medicine (except mental health  
                          Specialists.                                          specialists).                   
                                                    ................    *8031  Offices and Clinics of Doctors of
                                                                                Osteopathy (except mental health
                                                                                specialists).                   
XXXXX..............      Offices of Physicians,     N                   *8011  Offices and Clinics of Doctors of
                          Mental Health                                         Medicine (mental health         
                          Specialists.                                          specialists).                   
                                                    ................    *8031  Offices and Clinics of Doctors of
                                                                                Osteopathy (mental health       
                                                                                specialists).                   
XXX................    Offices of Dentists:                                                                     
XXXX...............     Offices of Dentists.......  E                    8021  Offices and Clinics of Dentists. 
XXX................    Offices of Other Health                                                                  
                        Practitioners:                                                                          
XXXX...............     Offices of Chiropractors..  E                    8041  Offices and Clinics of           
                                                                                Chiropractors.                  
XXXX...............     Offices of Optometrists...  E                    8042  Offices and Clinics of           
                                                                                Optometrists.                   
XXXX...............     Offices of Mental Health    N                   *8049  Offices and Clinics of Health    
                         Practitioners, except                                  Practitioners, NEC (mental      
                         Physicians.                                            health practitioners except     
                                                                                physicians).                    
XXXX...............     Offices of Physical,        N                   *8049  Offices and Clinics of Health    
                         Occupational, and Speech                               Practitioners, NEC (physical,   
                         Therapists and                                         occupational, speech therapists,
                         Audiologists.                                          and audiologists).              
XXXX...............     Offices of All Other                                                                    
                         Health Practitioners:                                                                  
XXXXX..............      Offices of Podiatrists...  E                    8043  Offices and Clinics of           
                                                                                Podiatrists.                    
XXXXX..............      Miscellaneous Health       N                   *8049  Offices and Clinics of Health    
                          Practitioners.                                        Practitioners, NEC (except      
                                                                                mental health practitioners,    
                                                                                physical, occupational, speech  
                                                                                therapists, and audiologists).  
XXX................    Outpatient Care Facilities:                                                              
XXXX...............     Family Planning Centers...  N                   *8093  Speciality Outpatient Facilities,
                                                                                NEC (family planning centers).  
                                                    ................    *8099  Health and Allied Services, NEC  
                                                                                (childbirth preparation).       
XXXX...............     Outpatient Mental Health    N                   *8093  Specialty Outpatient Facilities, 
                         Facilities.                                            NEC (mental health facilities). 
XXXX...............     Other Outpatient Care                                                                   
                         Facilities:                                                                            
XXXXX..............      HMO Medical Centers......  N                   *8011  Offices and Clinics of Doctors of
                                                                                Medicine (HMO Medical Centers). 
XXXXX..............      Kidney Dialysis Centers..  E                    8092  Kidney Dialysis Centers.         
XXXXX..............      Ambulatory Surgical and    N                   *8011  Offices and Clinics of Doctors of
                          Freestanding Emergency                                Medicine (surgical and emergency
                          Centers.                                              centers).                       
XXXXX..............      All Other Outpatient Care  N                   *8093  Specialty Outpatient Facilities, 
                          Facilities.                                           NEC (except family planning and 
                                                                                mental health centers).         
XXX................    Medical and Diagnostic                                                                   
                        Laboratories:                                                                           
XXXX...............    Medical and Diagnostic                                                                   
                        Laboratories:                                                                           
XXXXX..............      Medical Laboratories.....  R                   *8071  Medical Laboratories (except     
                                                                                diagnostic imaging centers).    
XXXXX..............      Diagnostic Imaging         N                   *8071  Medical Laboratories (diagnostic 
                          Centers.                                              imaging centers).               
XXX................    Home Health Care Services:                                                               
XXXX...............     Home Health Care Services:                                                              
XXXXX..............      Home Health Agencies.....  N                   *8082  Home Health Care Services (home  
                                                                                health agencies).               
XXXXX..............      Other Home Health Care     N                   *8082  Home Health Care Services (except
                          Services.                                             home health agencies).          
XXX................    Miscellaneous Ambulatory                                                                 
                        Health Care Services:                                                                   
XXXX...............     Ambulance Services........  N                   *4119  Local Passenger Transportation,  
                                                                                NEC (land ambulance)            
                                                    ................    *4522  Air Transportation, Nonscheduled 
                                                                                (air ambulance).                
XXXX...............     Other Miscellaneous Health                                                              
                         Care Services:                                                                         
XXXXX..............      Blood and Organ Banks....  N                   *8099  Health and Allied Services, NEC  
                                                                                (blood and organ banks).        
XXXXX..............      All Other Miscellaneous    N                   *8099  Health and Allied Services, NEC  
                          Health Care Services.                                 (except blood and organ banks). 
XX.................  Hospitals:                                                                                 
XXX................    General Medical and                                                                      
                        Surgical Hospitals:                                                                     
XXXX...............     General Medical and         R                    8062  General Medical and Surgical     
                         Surgical Hospitals.                                    Hospitals.                      
                                                    ................    *8069  Specialty Hospitals, Except      
                                                                                Psychiatric (childrens'         
                                                                                hospitals).                     
XXX................    Psychiatric and Substance                                                                
                        Abuse Hospitals:                                                                        
XXXX...............     Psychiatric and Substance   R                    8063  Psychiatric Hospitals            
                         Abuse Hospitals.                                                                       
                                                                        *8069  Specialty Hospitals, Except      
                                                                                Psychiatric (substance abuse    
                                                                                hospitals).                     
XXX................    Specialty Hospitals, except                                                              
                        Psychiatric and Substance                                                               
                        Abuse Hospitals:                                                                        
XXXX...............     Specialty Hospitals,        R                   *8069  Specialty Hospitals, Except      
                         except Psychiatric and                                 Psychiatric (except childrens'  
                         Substance Abuse Hospitals.                             and substance abuse hospitals). 
XX.................  Nursing and Residential Care                                                               
                      Facilities:                                                                               
XXX................    Nursing Care Facilities:                                                                 
XXXX...............     Nursing Care Facilities...  N                   *8051  Skilled Nursing Care Facilities  
                                                                                (except continuing care         
                                                                                retirement communities).        
                                                    ................    *8052  Intermediate Care Facilities     
                                                                                (except continuing care         
                                                                                retirement communities and      
                                                                                mental retardation facilities). 
                                                    ................    *8059  Nursing and Personal Care        
                                                                                Facilities, NEC (except         
                                                                                continuing care retirement      
                                                                                communities).                   

[[Page 26565]]

                                                                                                                
XXX................    Mental Health, Mental                                                                    
                        Retardation, and Substance                                                              
                        Abuse Facilities:                                                                       
XXXX...............     Mental Retardation          N                   *8052  Intermediate Care Facilities     
                         Facilities.                                            (mental retardation facilities).
XXXX...............     Mental Health and           N                   *8361  Residential Care (mental health  
                         Substance Abuse                                        and substance abuse facilities).
                         Facilities.                                                                            
XXX................    Community Care Facilities                                                                
                        for the Elderly:                                                                        
XXXX...............     Community Care Facilities                                                               
                         for the Elderly:                                                                       
XXXXX..............     Continuing Care Retirement  N                   *8051  Skilled Nursing Care Facilities  
                         Communities.                                           (continuing care retirement     
                                                                                communities).                   
                                                    ................    *8052  Intermediate Care Facilities     
                                                                                (continuing care retirement     
                                                                                communities).                   
                                                    ................    *8059  Nursing and Personal Care        
                                                                                Facilities, NEC (continuing care
                                                                                retirement communities).        
XXXXX..............      Homes for the Elderly....  N                   *8361  Residential Care (homes for the  
                                                                                elderly).                       
XXX................    Other Residential Care                                                                   
                        Facilities:                                                                             
XXXX...............     Other Residential Care      N                   *8361  Residential Care (except mental  
                         Facilities.                                            health and substance abuse      
                                                                                facilities, homes for the       
                                                                                elderly).                       
XX.................  Social Assistance:                                                                         
XXX................    Individual and Family                                                                    
                        Services:                                                                               
XXXX...............     Child and Youth Services..  N                   *8322  Individual and Family Social     
                                                                                Services (child and youth       
                                                                                services).                      
XXXX...............     Services for the Elderly    N                   *8322  Individual and Family Social     
                         and Persons with                                       Services (services for the      
                         Disabilities.                                          elderly and disabled).          
XXXX...............     Other Individual and        N                   *8322  Individual and Family Social     
                         Family Services.                                       Services (except services for   
                                                                                children, youth, elderly,       
                                                                                disabled; food, housing,        
                                                                                emergency and relief).          
XXX................    Community Food, Shelter,                                                                 
                        and Emergency Relief                                                                    
                        Services:                                                                               
XXXX...............     Community Food Services...  N                   *8322  Individual and Family Social     
                                                                                Services (food services).       
XXXX...............     Community Housing                                                                       
                         Services:                                                                              
XXXXX..............      Temporary Shelter........  N                   *8322  Individual and Family Social     
                                                                                Services (temporary shelter).   
XXXXX..............      Other Community Housing    N                   *8322  Individual and Family Social     
                          Services.                                             Services (housing services      
                                                                                except temporary shelter).      
XXXX...............     Emergency and Other Relief  N                   *8322  Individual and Family Social     
                         Services.                                              Services (emergency and relief  
                                                                                services).                      
XXX................    Job Training and Vocational                                                              
                        Rehabilitation Services:                                                                
XXXX...............     Job Training and            E                    8331  Job Training and Vocational      
                         Vocational Rehabilitation                              Rehabilitation Services.        
                         Services.                                                                              
XXX................    Child Day Care Services:                                                                 
XXXX...............     Child Day-care Services...  E                    8351  Child Day Care Services.         
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and 
  * means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                               



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
4119@...................................  Local Passenger Transportation,   Ambulance Services (pt.).           
                                           NEC.                                                                 
4522@...................................  Air Transportation, Nonscheduled  Ambulance Services (pt.).           
8011@...................................  Offices and Clinics of Doctors                                        
                                           of Medicine:                                                         
                                            Clinics of Physicians,          Ambulatory Surgical and Freestanding
                                             Surgical and Emergency          Emergency Centers.                 
                                             Centers.                                                           
                                            HMO Medical Centers...........  HMO Medical Centers.                
                                            Offices of Physicians, Mental   Offices of Physicians, Mental Health
                                             Health Specialists.             Specialists (pt.).                 
                                            Other Offices of Physicians...  Offices of Physicians, Except Mental
                                                                             Health Specialists (pt.).          
8021....................................  Offices and Clinics of Dentists.  Offices of Dentists.                
8031@...................................  Offices and Clinics of Doctors                                        
                                           of Osteopathy:                                                       
                                            Offices of Doctors of           Offices of Physicians, Except Mental
                                             Osteopathy, Except Mental       Health Specialists (pt.).          
                                             Health.                                                            
                                            Offices of Doctors of           Offices of Physicians, Mental Health
                                             Osteopathy, Mental Health       Specialists (pt.).                 
                                             Specialists.                                                       
8041....................................  Offices and Clinics of            Offices of Chiropractors.           
                                           Chiropractors.                                                       
8042....................................  Offices and Clinics of            Offices of Optometrists.            
                                           Optometrists.                                                        
8043....................................  Offices and Clinics of            Offices of Podiatrists.             
                                           Podiatrists.                                                         
8049....................................  Offices and Clinics of Health                                         
                                           Practitioners, Not Elsewhere                                         
                                           Classified:                                                          
                                            Mental Health Practitioners,    Offices of Mental Health            
                                             Except Physicians.              Practitioners, Except Physicians.  

[[Page 26566]]

                                                                                                                
                                            Offices of Physical,            Offices of Physical, Occupational,  
                                             Occupational, and Speech        and Speech Therapists and          
                                             Therapists and Audiologists.    Audiologists.                      
                                            Other Offices of Heath          Miscellaneous Health Practitioners. 
                                             Practitioners.                                                     
8051@...................................  Skilled Nursing Care Facilities:                                      
                                            Continuing Care Retirement      Continuing Care Retirement          
                                             Communities.                    Communities (pt.).                 
                                            All Other Skilled Nursing Care  Nursing Care Facilities (pt.).      
                                             Facilities.                                                        
8052@...................................  Intermediate Care Facilities:                                         
                                            Continuing Care Retirement      Continuing Care Retirement          
                                             Communities.                    Communities (pt.).                 
                                            Mental Retardation Facilities.  Mental Retardation Facilities.      
                                            Other Intermediate Care         Nursing Care Facilities (pt.).      
                                             Facilities.                                                        
8059@...................................  Nursing and Personal Care                                             
                                           Facilities, Not Elsewhere                                            
                                           Classified:                                                          
                                            Continuing Care Retirement      Continuing Care Retirement          
                                             Communities.                    Communities (pt.).                 
                                            Other Nursing and Personal      Nursing Care Facilities (pt.).      
                                             Care Facilities.                                                   
8062@...................................  General Medical and Surgical      General Medical and Surgical        
                                           Hospitals.                        Hospitals (pt.).                   
8063@...................................  Psychiatric Hospitals...........  Psychiatric and Substance Abuse     
                                                                             Hospitals (pt.).                   
8069@...................................  Specialty Hospitals, Except                                           
                                           Psychiatric:.                                                        
                                            Children's Hospitals..........  General Medical and Surgical        
                                                                             Hospitals (pt.).                   
                                            Psychiatric and Substance       Psychiatric and Substance Abuse     
                                             Abuse Hospitals.                Hospitals (pt.).                   
                                            Other Specialty Hospitals.....  Specialty Hospitals, Except         
                                                                             Psychiatric and Substance Abuse    
                                                                             Hospitals.                         
8071....................................  Medical Laboratories:                                                 
                                            Diagnostic Imaging Centers....  Diagnostic Imaging Centers.         
                                            Medical Laboratories, Except    Medical Laboratories.               
                                             Diagnostic Imaging Centers.                                        
8072....................................  Dental Laboratories.............  Dental Laboratories (Included in    
                                                                             Miscellaneous Manufacturing        
                                                                             subsector).                        
8082....................................  Home Health Care Services:                                            
                                            Home Health Agencies..........  Home Health Agencies.               
                                            Home Health Care Services,      Other Home Health Care Services.    
                                             Except Home Health Agencies.                                       
8092....................................  Kidney Dialysis Centers.........  Kidney Dialysis Centers.            
8093....................................  Specialty Outpatient Facilities,                                      
                                           Not Elsewhere Classified:                                            
                                            Family Planning Centers.......  Family Planning Centers.            
                                            Outpatient Mental Health        Outpatient Mental Health Facilities.
                                             Facilities.                                                        
                                            Other Specialty Outpatient      All Other Outpatient Care           
                                             Facilities.                     Facilities.                        
8099....................................  Health and Allied Services, Not                                       
                                           Elsewhere Classified:                                                
                                            Blood and Organ Banks.........  Blood and Organ Banks.              
                                            Medical artists...............  Graphic Design Services (pt.)       
                                                                             (Included in Professional,         
                                                                             Scientific, and Technical Services 
                                                                             subsector).                        
                                            Medical Photography...........  Commercial Photography (pt.)        
                                                                             (Included in Professional,         
                                                                             Scientific, and Technical Services 
                                                                             subsector).                        
                                            Other Health and Allied         All Other Miscellaneous Health Care 
                                             Services.                       Services.                          
8322....................................  Individual and Family Social                                          
                                           Services:                                                            
                                            Child and Youth Services......  Child and Youth Services.           
                                            Community Food Services.......  Community Food Services.            
                                            Community Housing Services,     Other Community Housing Services.   
                                             Except Temporary Shelters.                                         
                                            Emergency and Other Relief      Emergency and Other Relief Services.
                                             Services.                                                          
                                            Services for the Elderly and    Services for the Elderly and Persons
                                             Persons with Disabilities.      with Disabilities.                 
                                            Temporary Shelter.............  Temporary Shelter.                  
                                            Other Individual and Family     Other Individual and Family         
                                             Services.                       Services.                          
8331....................................  Job Training and Vocational       Job Training and Vocational         
                                           Rehabilitation Services.          Rehabilitation Services.           
8351....................................  Child Day-care Services.........  Child Day Care Services.            
8361....................................  Residential Care:                                                     
                                            Homes for the Elderly.........  Homes for the Elderly.              
                                            Mental Health and Substance     Mental Health and Substance Abuse   
                                             Abuse Facilities.               Facilities.                        
                                            Other Residential Care........  Other Residential Care Facilities.  
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' mean ``part of''. @ means a time series break has been created that is greater than 3%  
  of the 1992 revenues for the 1987 SIC industry.                                                               



Description of Changes to the U.S. System

    1. Ambulatory Health Care Services--Sixteen new NAICS or national 
industries were added to the 1997 industry structure for this subsector 
to better describe the growing and changing U.S. Ambulatory Health Care 
Services industries. A number of these new industries were created from 
1987 Not Elsewhere Classified (NEC) industries. The new industries are:

[[Page 26567]]

    Offices of Physicians, except Mental Health Specialists from part 
of 1987 SIC code 8011, Offices and Clinics of Doctors of Medicine, and 
part of 1987 SIC code 8031, Offices and Clinics of Doctors of 
Osteopathy. In most cases, these two types of physicians provide the 
same services.
    Offices of Physicians, Mental Health Specialists from Part of 1987 
SIC code 8011, Offices and Clinics of Doctors of Medicine, and part of 
1987 SIC code 8031, Offices and Clinics of Doctors of Osteopathy. 
Mental health is separated from other physicians because the production 
process they use most differs from that used by other physicians.
    Offices of Mental Health Practitioners, Except Physicians from part 
of 1987 SIC 8049, Offices of Health Practitioners, NEC. This new 
industry was created because it had a unique production process.
    Offices of Physical, Occupational, and Speech Therapists and 
Audiologists from part of 1987 SIC 8049, Offices of Health 
Practitioners, NEC. This new industry was created because it had a 
unique production process.
    Miscellaneous Health Practitioners from part of 1987 SIC 8049, 
Offices and Clinics of Health Practitioners, NEC. This is one of two 
new residual categories from the current NEC category. It includes only 
offices of practitioners.
    Family Planning Centers from part of 1987 SIC 8093, Specialty 
Outpatient Clinics, NEC, and part of 1987 SIC 8099, Health and Allied 
Services, NEC. This new industry was created because it had a unique 
production process.
    Outpatient Mental Health Facilities from part of 1987 SIC 8093, 
Specialty Outpatient Clinics, NEC. This new industry was created 
because it had a unique production process.
    HMO Medical Centers from part of 1987 SIC 8011, Offices and Clinics 
of Doctors of Medicine. The range of services provided in these centers 
are generally greater than in physician offices.
    Ambulatory Surgical and Freestanding Emergency Centers from part of 
1987 SIC 8011, Offices and Clinics of Doctors of Medicine. This new 
industry was created because it had a unique production process.
    All Other Outpatient Care Facilities from part of 1987 SIC 8049, 
Offices and Clinics of Health Practitioners, NEC. This is the second 
residual category from the current NEC. It contains only outpatient 
care facilities.
    Diagnostic Imaging Centers from part of 1987 SIC 8071, Medical 
Laboratories. This new industry was created because it had a unique 
production process.
    Home Health Agencies from part of 1987 SIC 8082, Home Health Care 
Services. This industry provides skilled nursing, physical and other 
therapy, and other services provided in the home.
    Other Home Health Care Services from part of 1987 SIC 8082, Home 
Health Care Services. This residual of the current industry includes, 
for example, home inhalation, infusion, and perfusion therapy.
    Ambulance Services from parts of 1987 SIC 4119, Local Passenger 
Transportation, Not Elsewhere Classified, and 1987 SIC 4522, Air 
Transportation, Nonscheduled. The medical service provided by ambulance 
personnel is more important than the transportation.
     Blood and Organ Banks from part of 1987 SIC 8099, Health and 
Allied Services, NEC. The new industry was created because it had a 
unique production process.
    All Other Miscellaneous Health Care Services from part of 1987 SIC 
8099, Health and Allied Services, NEC. This is the new residual 
category for the current 8099.
    2. Hospitals--There are no new industries, but some content changes 
were made to achieve comparability among the three countries. These 
are:
    Children's hospitals were moved from 1987 SIC 8069, Specialty 
Hospitals, except Psychiatric, to General Medical and Surgical 
Hospitals. These hospitals provide the wide variety of services found 
in general hospitals.
    Alcohol and drug abuse hospitals were moved from 1987 SIC 8069, 
Speciality Hospitals, except Psychiatric, to form part of Psychiatric 
and Substance Abuse Hospitals to recognize the growing number of these 
hospitals.
    3. Nursing and Residential Care Facilities--The three industries in 
1987 SIC Industry Group 805, Nursing and Personal Care Facilities, and 
1987 SIC 8361, Residential Care, have been redistributed into five 
NAICS industries and two additional National industries to better 
describe this growing activity and to eliminate the distinction made in 
1987 based on the Medicare/Medicaid programs. The new industries are:
    Nursing Care Facilities from parts of 1987 SIC 8051, Skilled 
Nursing Care Facilities; 1987 SIC 8052, Intermediate Care Facilities; 
and 1987 SIC 8059, Nursing and Personal Care Facilities, NEC. These 
industries were combined because many establishments provide care for 
persons needing varying levels of health care.
    Mental Retardation Facilities from part of 1987 SIC 8052, 
Intermediate Care Facilities. This new industry was created because it 
had a production process not found in nursing homes.
    Mental Health and Substance Abuse Facilities from part of 1987 SIC 
8361, Residential Care. This new industry was created because it had a 
unique production process.
    Continuing Care Retirement Communities from parts of 1987 SIC 8051, 
Skilled Nursing Care Facilities; 1987 SIC 8052, Intermediate Care 
Facilities; and 1987 SIC 8059, Nursing and Personal Care Facilities, 
NEC. This new industry was created to handle the growing number of 
establishments having facilities for various levels of care at one 
facility, including nursing care, housekeeping, meal service, and other 
services to assist elderly persons in daily living.
    Homes for the Elderly from part of SIC 1987 8361, Residential Care. 
This new industry was created to provide data on establishments known 
as retirement homes or assisted living facilities, where medical care 
is incidental.
    Other Residential Care Facilities from part of 1987 SIC 8361, 
Residential Care. This is a new residual category from the current 
8361, Residential Care.
    4. Social Assistance--1989 SIC 8322, Individual and Family Social 
Services, has been split into seven new industries in two industry 
groups. These new industries reflect the growing and changing character 
of social assistance industries. Additional industries for social 
assistance were requested by several organizations interested in 
activities of not for profit organizations. These new industries were 
created to fill that need and because the new industries had different 
production processes.
    The industries included in the industry group Individual and Family 
Services are:

Child and Youth Services
Services for the Elderly and Persons with Disabilities
Other Individual and Family Services

    The industries under the new industry group Community Food, 
Shelter, and Emergency Relief Services are:

Community Food Services
Temporary Shelter (U.S. national industry)
Other Community Housing Services (U.S. national industry)
Emergency and Other Relief Services

Part II--Proposed New Industry Structure for Educational Services

Section A--NAICS Structure

North American Industry Classification System
(NAICS)

[[Page 26568]]

Agreement Number 12

    This Document represents the proposed agreement on the structure of 
the North American Industry Classification System (NAICS) for the 
following subsector:
Educational Services
    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on September 27, 1995-September 29, 1995 in 
Mexico City, Mexico.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    9/29/95
Mexico..............................  /S/ Enrique Ordaz......    9/29/95
United States.......................  /S/ Jack E. Triplett...    9/29/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

X  Educational Services
XXX  Elementary and Secondary Schools
XXXX  Elementary and Secondary Schools
XXX  Junior Colleges
XXXX  Junior Colleges
XXX  Colleges, Universities, and Professional Schools
XXXX  Colleges, Universities, and Professional Schools
XXX  Business, Computer and Management Training Schools
XXXX  Business and Secretarial Schools
XXXX  Computer Training Schools
XXXX  Professional and Management Development Training Schools
XXX  Technical and Trade Schools
XXXX  Technical and Trade Schools
XXX  Miscellaneous Schools and Instruction
XXXX  Fine Arts Schools
XXXX  Athletic Instruction
XXXX  Language Schools
XXXX  Other Miscellaneous Schools and Instruction
XXX  Educational Support Services
XXXX  Educational Support Services

Attachment 2--North American Industry Classification System

    Draft Classification for:

Educational Services

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industry classification for these 
industries.
    This draft classification applies to the subsector Educational 
Services. This subsector is subdivided into 7 industry groups and 12 
industries.

A General Outline

    Educational services industries provide instruction and training in 
a wide variety of subjects. The industry groups within this subsector 
(Elementary and Secondary Schools; Junior Colleges; Colleges, 
Universities, and Professional Schools; Business, Computer and 
Management Training Schools; Technical and Trade Schools; Miscellaneous 
Schools and Instruction; and Educational Support Services) are based on 
the level of educational services provided, and therefore on the level 
and types of training that are required of the instructors and 
teachers.
    The Elementary and Secondary Schools industry group includes 
establishments that furnish courses that comprise each country's basic 
preparatory education. Included are parochial schools and military 
academies furnishing basic preparatory academic courses and secondary 
schools that furnish both academic and technical courses.
    Junior Colleges furnish academic or academic and technical courses 
and grant associate or equivalent academic degrees, diplomas, or 
certificates that are below the college or university level. This 
grouping includes community colleges that offer associate degrees. The 
requirement for admission to an associate or equivalent degree program 
is at least a high school diploma or equivalent general academic 
training. Schools having junior college grades in conjunction with 
secondary grades are classified in Elementary and Secondary Schools.
    Colleges, Universities, and Professional Schools furnish academic 
courses and grant academic degrees at the baccalaureate or postgraduate 
level. The requirement for admission is at least a high school diploma 
or equivalent general academic training.
    Business, Computer and Management Training Schools include 
establishments that provide training in business, secretarial, 
computer, and related fields. This industry group contains three 
industries. Business and Secretarial Schools offer courses in office 
procedures and secretarial and stenographic skills and may offer 
courses in basic computer skills, word processing, spreadsheet, and 
desktop publishing. In addition, they offer such classes as office 
machine operation, reception, communications, and other skills designed 
for individuals pursuing a clerical or secretarial career or a career 
in court reporting. Colleges of business within universities are 
excluded. The Computer Training Schools industry reflects the 
increasing demand for on-site and specialized computer training. 
Establishments included in this industry conduct training on all phases 
of computer activities including computer programming, software 
packages, computerized business systems, computer electronics 
technology, computer operations, and local area network management. 
Establishments that design custom computer systems and then provide 
training in the use of these custom systems are excluded; these 
establishments are included in the Professional, Scientific and 
Technical Services subsector. Professional and Management Development 
Training Schools include establishments that offer an array of short 
duration courses and seminars for career development. These 
establishments may customize or modify their courses to meet the 
special needs of customers. The courses typically focus on executive 
management and professional development and may be provided directly to 
individuals or through employers' training programs. The courses may be 
offered on-site or off-site.
    Technical and Trade Schools provide training in a wide variety of 
technical subjects and trades. Because the nature of technical training 
varies so widely among the three countries, only one NAICS 4-digit 
industry is defined within this industry group. Each country may 
provide national industry detail below the NAICS industry level to 
reflect technical and trade schools found within each country.
    The Miscellaneous Schools and Instruction industry group includes 
4-digit industries for Fine Arts Schools, Athletic Instruction, and 
Language Schools. Fine Arts Schools include art schools, drama schools, 
music schools, professional dance schools, other dance schools and 
studios. However, schools that offer high school diplomas or academic 
degrees are placed in the other appropriate industry groups, even if 
they specialize in fine arts. Athletic Instruction includes 
establishments that provide training in athletic activities such as 
baseball, basketball, golf, martial

[[Page 26569]]

arts, and skiing. Language Schools are establishments that teach 
foreign languages. They are designed to offer language instruction 
ranging from conversational skills for personal enrichment to intensive 
training courses for career or educational opportunities. Skills taught 
by these establishments may include speaking, reading, and writing in 
another language.
    Educational Support Services include educational consultants, 
educational test development and evaluation services, educational 
testing services, student exchange programs, educational curriculum 
development, and other non-instructional services that support 
educational processes or systems. Establishments primarily engaged in 
providing job training for the unemployed, underemployed, persons with 
disabilities, and persons who have a job market disadvantage because of 
a lack of education, job skills, or experience are classified in the 
Health and Social Assistance sector.

Limitations and Constraints of the Classification

    Defining educational services industries that are economically 
significant and homogeneous was often difficult due to lack of data. 
Some industries that were considered when establishing NAICS industries 
for educational services are either too small or not specialized in all 
three countries, for example correspondence schools. It is not possible 
to use the proposed system to identify specific fields of study because 
many establishments offer a wide range of courses. Further, it is not 
possible to differentiate career-oriented training from training taken 
for personal development as many types of establishments provide both 
kinds of training.
    The way activities are defined in establishments differs in the 
three countries, preventing the establishment of additional NAICS 
industries. For example, in Mexico there are separate establishments 
that provide special educational instruction for elementary and 
secondary school students with learning disabilities while in the 
United States and Canada, special educational instruction is generally 
provided by schools serving all students. Also in the United States, 
establishments providing trade apprenticeship training are separately 
identifiable, whereas in the other countries this type of training 
generally occurs ``on the job.''
    Changes were required in each country's national classification to 
reach international comparability. The production principle was applied 
whenever these changes were required.

Relationship to ISIC

    Most 4-digit NAICS industries in this sector are contained within 
Division 80, Education, of the current International Standard 
Industrial Classification of all Economic Activities (ISIC, Revision 3) 
of the United Nations. Therefore, data tabulated using NAICS also can 
be tabulated according to ISIC with the following exceptions: (1) 
Informal education activities below kindergarten (or preschool in 
Mexico) are often combined with day-care, and are classified with the 
Child Day-care industry in the NAICS subsector for Social Assistance 
and (2) NAICS classifies athletic instruction in Educational Services, 
but ISIC classifies it in 924, Sporting and Other Recreational 
Activities. There are five 4-digit industries covering educational 
services in ISIC while NAICS is more detailed, providing for twelve 
industries. The NAICS industries for Junior Colleges and Colleges, 
Universities, and Professional Schools are directly comparable to ISIC 
industry, 8030, Higher Education. In ISIC, Elementary and Secondary 
Schools are separate industries, while in NAICS they are combined, 
because in the U.S. data on schools are usually collected from school 
systems that operate both levels.

Some Changes to National Classification

    In Canada CSIC 8521, Post-Secondary Non-University Education, has 
been split into Junior Colleges, Business and Secretarial Schools, 
Computer Training, Technical and Trade Schools, and Fine Arts Schools. 
Aviation Schools have been moved out of CSIC 4513, Non-Scheduled Air 
Transport Specialty Industry, to this subsector because they primarily 
provide instruction, even though aircraft may be required in some 
portions of the instruction process. Sports instruction has been moved 
out of CSIC 96, Amusement and Recreational Service Industries, and 
becomes NAICS industry, Athletic Instruction. CSIC 8599, Other 
Educational Services, has been split into Language Schools, Other 
Miscellaneous Instruction and Educational Support Services. Two 
industries have been moved from Educational Service Industries. These 
are CSIC 8541, Library Services, to the new Information sector, and 
CSIC 8551 Museums and Archives, to the new Museums, Historical Sites 
and Similar Institutions subsector. Both will be published separately.
    The Mexican CMAP groups 9211, Education Services (Private), and 
CMAP 9212, Education Services (Public), are combined in the NAICS 
Educational Services subsector. The NAICS Educational Services 
subsector does not distinguish between establishments in the private 
and public sectors. Mexico will make this distinction in its national 
detail. The only activities that came from another CMAP subsector are 
athletic instruction and educational support services.
    For the United States, cosmetology and barber schools moved into 
Educational Services from 1987 SIC's 7231, Beauty Shops, and 7241, 
Barber Shops. Dance schools move into Educational Services from 1987 
SIC 7911, Dance Studios, Schools, and Halls. A dancing school is not 
closely related to a ballroom, though both may have dance floors. 
Athletic instruction moves from 1987 SIC 7999, Amusement and Recreation 
Services, Not Elsewhere Classified, to Educational Services. Libraries, 
1987 SIC 8231, have been moved from Educational Services to the new 
Information sector, to be published separately.

Achievement of Objectives

    The classification meets the objectives for the North American 
Industry Classification System (NAICS). It is comprised of industries 
that group establishments with similar production processes, that is, 
it applies the production-oriented economic concept. In the main, the 
hierarchical structure of the classification also follows the 
production concept.
    The classification achieves comparability for the three 
participating countries. All countries agree on the detailed 
definitions of the industries. However, each country will use 
terminology that reflects its own educational system.
    Other objectives of the NAICS project have also been met. New 
industries have been added to reflect trends in adult education and 
professional training.
    The industries are highly specialized and economically significant. 
This enhances the classification's suitability for sampling and other 
aspects of survey operations. Finally, disruptions to time series, 
while they exist, have been minimized and generally result from 
subdividing existing ``not elsewhere classified'' industries. The major 
changes are well-defined and can be taken into account in linking time 
series.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the

[[Page 26570]]

NAICS industry subsector presented in Part II, Section A--Attachment 1, 
contain less detail than is currently in the U.S. SIC system, and less 
detail than is required to meet important analytical requirements in 
the U.S. The three country agreement on NAICS envisions that each 
country may develop national detailed industries below the NAICS 
industry level, so long as the national detail can be aggregated to the 
NAICS classification, thus assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
industry subsector covered in Part II of this notice. For cases where 
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................   Educational Services:                                                                     
XXX................    Elementary and Secondary                                                                 
                        Schools:                                                                                
XXXX...............     Elementary and Secondary    E                    8211  Elementary and Secondary Schools.
                         Schools.                                                                               
XXX................    Junior Colleges:                                                                         
XXXX...............     Junior Colleges...........  E                    8222  Junior Colleges and Technical    
                                                                                Institutes.                     
XXX................  Colleges, Universities, and                                                                
                      Professional Schools:                                                                     
XXXX...............     Colleges, Universities,     E                    8221  Colleges, Universities, and      
                         and Professional Schools.                              Professional Schools.           
XXX................    Business, Computer, and                                                                  
                        Management Training                                                                     
                        Schools.                                                                                
XXXX...............     Business and Secretarial    E                    8244  Business and Secretarial Schools.
                         Schools.                                                                               
XXXX...............     Computer Training Schools.  E                    8243  Data Processing Schools.         
XXXX...............     Professional and            N                   *8299  Schools and Educational Services,
                         Management Development                                 Not Elsewhere Classified        
                         Training Schools.                                      (professional and management    
                                                                                development training).          
XXX................    Technical and Trade                                                                      
                        Schools:                                                                                
XXXX...............     Technical and Trade                                                                     
                         Schools:                                                                               
XXXXX..............      Cosmetology and Barber     N                   *7231  Beauty Shops (beauty and         
                          Schools.                                              cosmetology schools).           
                                                                        *7241  Barber Shops (barber colleges).  
XXXXX..............      Vocational and Technical   N                   *8249  Vocational Schools, Not Elsewhere
                          Schools.                                              Classified (vo-tech schools,    
                                                                                except high schools).           
XXXXX..............      Aviation and Flight        N                   *8249  Vocational Schools, Not Elsewhere
                          Training.                                             Classified (aviation schools,   
                                                                                excluding flying instruction).  
                                                                        *8299  Schools and Educational Services,
                                                                                Not Elsewhere Classified (flying
                                                                                instruction).                   
XXXXX..............      Apprenticeship Training..  N                   *8249  Vocational Schools, Not Elsewhere
                                                                                Classified (vocational          
                                                                                apprenticeship training).       
XXXXX..............      Other Technical and Trade  N                   *8249  Vocational Schools, Not Elsewhere
                          Schools.                                              Classified (except vo-tech      
                                                                                schools, aviation and flight    
                                                                                training, apprenticeship        
                                                                                training, and driving schools). 
XXX................    Miscellaneous Schools and                                                                
                        Instruction:                                                                            
XXXX...............     Fine Arts Schools.........  N                   *8299  Schools and Educational Services,
                                                                                Not Elsewhere Classified (art,  
                                                                                drama, and music schools).      
                                                                        *7911  Dance Studios, Schools, and Halls
                                                                                (dance instructors, and         
                                                                                professional and other dance    
                                                                                schools).                       
XXXX...............     Athletic Instruction......  N                   *7999  Amusement and Recreation         
                                                                                Services, Not Elsewhere         
                                                                                Classified (baseball,           
                                                                                basketball, bowling, gymnastic, 
                                                                                judo, karate, parachute, scuba  
                                                                                and skin diving, skating, ski,  
                                                                                swimming, tennis, and other     
                                                                                sports instruction; and sports  
                                                                                instructional schools and       
                                                                                camps).                         
XXXX...............     Language Schools..........  N                   *8299  Schools and Educational Services,
                                                                                Not Elsewhere Classified        
                                                                                (language schools).             
XXXX...............     Other Miscellaneous                                                                     
                         Schools and Instruction:.                                                              
XXXXX..............      Exam Preparation and       N                   *8299  Schools and Educational Services,
                          Tutoring.                                             Not Elsewhere Classified (exam  
                                                                                preparation and tutoring).      
XXXXX..............      Automobile Driving         N                   *8249  Vocational Schools, Not Elsewhere
                          Schools.                                              Classified (truck driving       
                                                                                schools).                       
                                                                        *8299  Schools and Educational Services,
                                                                                Not Elsewhere Classified        
                                                                                (automobile driving             
                                                                                instruction).                   
XXXXX..............      All Other Miscellaneous    N                   *8299  Schools and Educational Services,
                          Schools and Instruction.                              Not Elsewhere Classified (except
                                                                                professional and management     
                                                                                training, aviation and flight   
                                                                                training, fine arts schools,    
                                                                                language schools, exam          
                                                                                preparation and tutoring,       
                                                                                automobile driving schools, and 
                                                                                educational support services).  
XXX................    Educational Support                                                                      
                        Services:                                                                               
XXXX...............     Educational Support         N                   *8299  Schools and Educational Services 
                         Services.                                              Not Elsewhere Classified (except
                                                                                instruction).                   

[[Page 26571]]

                                                                                                                
                                                                        *8748  Business Consulting Services, Not
                                                                                Elsewhere Classified            
                                                                                (educational test development   
                                                                                and evaluation services,        
                                                                                educational testing services,   
                                                                                and educational consultants).   
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry R--revised industry; and  
  *means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                                



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
7231@...................................  Beauty Shops:                                                         
                                            Beauty Shops..................  Beauty Shops (Included in Consumer  
                                                                             Services subsector).               
                                            Beauty and Cosmetology Schools  Cosmetology and Barber Schools      
                                                                             (pt.).                             
7241....................................  Barber Shops:                                                         
                                            Barber Shops..................  Barber Shops (Included in Consumer  
                                                                             Services subsector).               
                                            Barber Colleges...............  Cosmetology and Barber Schools      
                                                                             (pt.).                             
7911@...................................  Dance Studios, Schools, and                                           
                                           Halls:                                                               
                                            Dance Studios and Halls.......  Miscellaneous Operators of Sports   
                                                                             and Recreation Facilities (Included
                                                                             in Recreation, Amusement, and      
                                                                             Gambling subsector).               
                                             Dance Schools................  Fine Arts Schools (pt.).            
7999....................................  Amusement and Recreation          Athletic Instruction.               
                                           Services, Not Elsewhere                                              
                                           Classified.                                                          
8211....................................  Elementary and Secondary Schools  Elementary and Secondary Schools.   
8221....................................  Colleges, Universities, and       Colleges, Universities, and         
                                           Professional Schools.             Professional Schools.              
8222....................................  Junior Colleges and Technical     Junior Colleges.                    
                                           Schools.                                                             
8231....................................  Libraries.......................  Libraries and Archives (Included in 
                                                                             Information subsector).            
8243....................................  Data Processing Schools.........  Computer Training Schools.          
8244....................................  Business and Secretarial Schools  Business and Secretarial Schools.   
8249@...................................  Vocational Schools, Not                                               
                                           Elsewhere Classified:                                                
                                            Trade Schools.................  Apprenticeship Training.            
                                            Truck Drivers Schools.........  Automobile Driving Schools (pt.).   
                                            Aviation Schools..............  Aviation and Flight Training (pt.). 
                                            Vocational Schools............  Vocational and Technical Schools.   
                                            Other Technical and Trade       Other Technical and Trade Schools.  
                                             Schools.                                                           
8299@...................................  Schools and Educational                                               
                                           Services, Not Elsewhere                                              
                                           Classified:                                                          
                                            Flying Instruction............  Aviation and Flight Training (pt.). 
                                            Automobile Driving Instruction  Automobile Driving Schools (pt.).   
                                            Curriculum Development,         Educational Support Services (pt.). 
                                             Educational.                                                       
                                            Exam Preparation and Tutoring.  Exam Preparation and Tutoring.      
                                            Art Schools...................  Fine Arts Schools (pt.).            
                                            Language Schools..............  Language Schools.                   
                                            Personal Development Schools..  Professional and Management         
                                                                             Development Training (pt.).        
                                            All Other Schools and           All Other Miscellaneous Instruction.
                                             Educational Services, Not                                          
                                             Elsewhere Classified.                                              
8748@...................................  Business Consulting Services,     Educational Support Services (pt.). 
                                           Not Elsewhere Classified.                                            
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' meams ``part of'' @ means time series break has been created that is greater than 3% of 
  the 1992 revenues for the 1987 SIC industry.                                                                  

Description of Changes to the U.S. System

    Educational Services--Thirteen new industries are added to the 1997 
industry structure for this industry subsector. Most of these new 
industries have been formed by breaking apart old Not Elsewhere 
Classified (NEC) industries in the 1987 U.S. SIC. New industries are as 
follows:
    Professional and Management Development Training Schools from part 
of 1987 SIC 8299, Schools and Educational Services, NEC. This new 
industry was created because it had a unique production function.
    Cosmetology and Barber Schools from part of 1987 SIC 7231, Beauty 
Shops, and 1987 SIC 7241, Barber Shops. This was moved to this sector 
because the primary activity is education, even though these schools 
give hair cuts.
    Vocational and Technical Schools from part of 1987 SIC 8249, 
Vocational Schools, NEC. This new industry was created because it had a 
unique production function.
    Aviation and Flight Training from parts of 1987 SIC 8249, 
Vocational Schools NEC, and 1987 Industry Code 8299, Schools and 
Educational Services, NEC. This new industry was created because it had 
a unique production function.
    Apprenticeship Training from part of 1987 SIC 8249, Vocational 
Schools, NEC. This new industry was created because it had a unique 
production function.
    Other Technical and Trade Schools from part of 1987 SIC 8249, 
Vocational Schools, NEC. This is the residual five digit category for 
the four digit industry Technical and Trade Schools.

[[Page 26572]]

    Fine Arts Schools from parts of 1987 SIC 8299, Schools and 
Educational Services, NEC, and 1987 SIC 7911, Dance Studios, Schools, 
and Halls. This new industry was created because it had a unique 
production function.
    Athletic Instruction from part of 1987 SIC 7999, Amusement and 
Recreation Services, NEC. This was moved to this sector because the 
primary activity is education, rather than entertainment.
    Language Schools from part of 1987 SIC 8299, Schools and 
Educational Services, NEC. This new industry was created because it had 
a unique production function.
    Exam Preparation and Tutoring from part of 1987 SIC 8299, Schools 
and Educational Services, NEC. This new industry was created because it 
had a unique production function.
    Automobile Driving Schools from parts of 1987 SIC 8249, Vocational 
Schools, NEC, and SIC 8299, Schools and Educational Services, NEC. This 
new industry was created because it had a unique production function.
    All Other Miscellaneous Schools and Instruction from part of 1987 
SIC 8299, Schools and Educational Services, NEC. This is the residual 
category for the subsector.
    Educational Support Services from parts of 1987 SIC 8299, Schools 
and Educational Services, NEC, and 1987 SIC 8748, Business Consulting 
Services, NEC. This new industry differs from the others in that it 
provides support to educational industries, rather than providing 
instruction.
    A major change to the 1987 Major Group, Educational Services, is 
the movement of 1987 SIC 8231, Libraries, to the new Information 
sector.
    The number of Educational Services industries increased from 8 to 
18. For time series linkage, six of the eight 1987 industries are 
comparable within three percent of the 1997 industries.

Part III--Proposed New Industry Structure for Computer and Electronic 
Product Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 13

    This Document represents the proposed agreement on the structure of 
the North American Industry Classification System (NAICS) for the 
following subsector: Computer and Electronic Product Manufacturing
    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on September 27, 1995-September 29, 1995 in 
Mexico City, Mexico.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    9/29/95
Mexico..............................  /S/ Enrique Ordaz......    9/29/95
United States.......................  /S/ Jack E. Triplett...    9/29/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Computer and Electronic Product Manufacturing
XXX  Computer and Peripheral Equipment Manufacturing
XXXX  Computer and Peripheral Equipment Manufacturing
XXX  Communications Equipment Manufacturing
XXXX  Telephone Apparatus Manufacturing
XXXX  Broadcast and Studio Equipment for Radio, TV, and Cable 
Manufacturing
XXXX  Other Communications Equipment Manufacturing
XXX  Audio and Video Equipment Manufacturing
XXXX  Audio and Video Equipment Manufacturing
XXX  Semiconductor and Electronic Component Manufacturing
XXXX  Semiconductor and Electronic Component Manufacturing
XXX  Navigational, Measuring, Medical and Control Instrument 
Manufacturing
XXXX  Navigational, Measuring, Medical and Control Instrument 
Manufacturing
XXX  Manufacturing and Reproduction of Magnetic and Optical Media
XXXX  Manufacturing and Reproduction of Magnetic and Optical Media 
(Includes the manufacturing of blank audio and video tapes, 
diskettes and CD-ROMs, and reproduction of software, audio, video, 
and multimedia products)

Attachment 2--North American Industry Classification System

    Draft Classification for:

Computer and Electronic Product Manufacturing

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

A General Outline

    The Computer and Electronic Product Manufacturing industries 
produce computers, computer peripherals, communications equipment, and 
similar electronic products, together with components for such 
products. The treatment of this subsector in NAICS differs 
substantially from past national classifications in all three 
countries, and also from other international classifications.
    First, in NAICS the computer and electronic product manufacturing 
industries have been elevated to a separate subsector that brings 
together in the classification the manufacture of electronic products 
and their components. In previous national classification systems, and 
in the International Standard Industrial Classification of All Economic 
Activities (ISIC, Revision 3) of the United Nations, these industries 
are placed in machinery industries or with electrical equipment. 
Computer and electronic product manufacturing industries have been 
elevated in the hierarchy of NAICS because of the economic importance 
they have attained, because their rapid growth suggests that they will 
become even more important in the economies of all three North American 
countries in the future, and because their manufacturing processes are 
fundamentally different from the manufacturing processes of other 
machinery and electrical components with which they have been grouped 
in the past, and are grouped in ISIC.
    Computers, communications equipment, and other electronic devices 
can of course be regarded as types of machines, which has been the view 
embodied in past classification systems. However, in NAICS the 
application of mechanical principles defines the Machinery subsector, 
because it describes the production processes (gear cutting and so 
forth) that must be used to manufacture machinery that functions on 
mechanical principles. Mechanical principles are not significant in the 
operation of computers and other electronic devices, and the production 
of computers, communications equipment and other electronic devices is 
not characterized by the processes that are used in the Machinery 
subsector.
    Instead, the design and use of integrated circuits and the 
application

[[Page 26573]]

of highly specialized miniaturization technologies are common elements 
in the production technologies of the Computer and Electronic Product 
Manufacturing subsector. The production processes are in a constant 
state of technological development, such that heavy research and 
development expenditures are necessary to cope with rapid obsolescence 
of tangible and intangible assets. The manufacture of these products is 
grouped together because similar production processes are used.
    A second substantive difference between NAICS and most other 
classification systems involves the grouping itself. In NAICS, the 
manufacture of integrated circuits and related electronic components is 
placed in the same subsector as the manufacturing of computers, 
communications equipment and other end products for which these 
components are an essential part of the end-product technology. 
Moreover, NAICS combines in the same subsector end products that have 
different uses--for example, computers, communications equipment, and 
audio equipment--but have similar and converging technologies.
    Convergence of technology motivates the NAICS groupings. 
Digitalization of sound recording, for example, causes both the medium 
(the ``compact disk'') and the equipment to resemble the technologies 
for recording, storing, transmitting and manipulating data. 
Communications technology and equipment have been converging with 
computer technology. Machines already exist that can send fax messages, 
copy electronically, and print documents. Transmission technology may 
take the form of a dedicated, separately-housed machine (end product), 
or the same technology may be incorporated into a board mounted inside 
a computer (in which case it is technically an electronic component); 
thus, the component/end product distinction no longer justifies 
separating electronic components in a separate part of the 
classification system from electronic end products. Combining in the 
same subsector the production of equipment designed for different end 
uses, and also combining in the same subsector the components with the 
end-use equipment, is justified by rapid convergence in the production 
technologies and by the expected continued convergence of technology.
    When technologically related components are in the same sector, it 
makes it easier to adjust the classification for future changes, 
without needing to redefine its basic structure. The creation of the 
Computer and Electronic Product Manufacturing subsector will assist in 
delineating new and emerging industries because the activities that 
will serve as the probable sources of new industries--such as computer 
manufacturing and communications equipment manufacturing, or computers 
and audio equipment--are brought together. As new activities emerge, 
they are less likely therefore to cross the subsector boundaries of the 
classification.
    In addition, the three countries put a priority in NAICS on the 
delineation of industries engaged in the production of advanced 
technologies. The creation of this subsector is a response to that 
priority. It groups activities that are constantly developing and 
applying new scientific and engineering knowledge.
    Though the three countries' statistical agencies agree that the 
growth of computer and electronic components in all three countries is 
likely to be significant in the future, and that accordingly it merits 
treatment as a subsector in NAICS, many differences currently exist in 
the degrees of specialization and differentiation in the three 
countries. The United States has more diversification and more 
specialization in these high technology sectors than does either Canada 
or Mexico. For this reason, it was necessary to specify NAICS 4-digit 
industries in this sector at a relatively broad level of detail. By 
setting up a forward-looking classification, it will be easier to 
subdivide NAICS 4-digit industries in the future, as the sector expands 
in all three countries, without requiring major shifts in the 
classification system. This is especially important in view of the fact 
that the technologies that are common across all of the industries in 
this subsector may converge in the future as well as differentiate.
    The Computer and Electronic Product Manufacturing subsector is 
subdivided into six industry groups. Computer and Peripheral Equipment 
Manufacturing comprises the production of computers and associated 
products such as storage devices and monitors. Communication Equipment 
Manufacturing includes the manufacture of telephone apparatus and radio 
and television studio and broadcast equipment. Audio and Video 
Equipment Manufacturing covers household and commercial radios, 
televisions, video equipment and similar articles. Semiconductor and 
Electronic Component Manufacturing includes the manufacture of a broad 
range of components used as parts in this subsector. The loading of 
circuit boards is classified here. Navigational, Measuring, Medical and 
Control Instrument Manufacturing includes the manufacture of such 
products as radar and sonar equipment and industrial process control 
equipment.
    The sixth industry group, Manufacturing and Reproduction of 
Magnetic and Optical Media, includes the production of media such as 
video tapes and CD-ROMs, and the mass duplication of these media. It 
should be noted that the manufacture of packaged software is placed in 
this sector; however, the publishing of software, and its distribution 
electronically, is placed in the new NAICS Information sector, to be 
published separately, while traditional custom applications of software 
to client specification are in the Professional, Scientific and 
Technical Services subsector. These changes were made to represent 
better the different ways that software is produced and distributed. 
Sources within the industry and without have noted that the attempt, in 
past classification systems, to locate all software in a single portion 
of the classification system (the Services sector, or the Manufacturing 
sector) obliterates useful distinctions in software production and 
distribution, and tends, whatever the decision, to become rapidly 
obsolete as the nature and use of software changes. The NAICS structure 
is intended to facilitate the production of data on such changes, 
rather than obliterating them.
    Consideration was given to subdividing this industry. Two 
possibilities were considered. Establishments could be distinguished 
based on the type of media, for example, CD-ROMs and diskettes or on 
the type of application, for example software and entertainment. This 
was not done for two reasons. First, the production process is often 
the same for a particular medium regardless of the application. For 
example, a blank CD-ROM can be used for recording music or for 
recording software. The format used for recording music CD-ROMs is also 
commonly used in multimedia software applications. Secondly, some 
establishments combine the production of the possible subdivisions. 
Establishments exist that produce both diskettes and CD-ROMs. These 
technological and establishment organization issues precluded a 
subdivision of the industry for NAICS. It is also the case that any 
subdivisions would be very small in Canada and Mexico.

[[Page 26574]]

Limitations and Constraints of the Classification

    In the Computer and Electronic Product Manufacturing subsector, 
most activities that were identified in one country exist in the 
others. However, as noted above, often an activity is not economically 
significant to the same degree in all countries. For example, a broad 
NAICS Computer and Peripheral Equipment Manufacturing industry was 
created because in Canada and Mexico establishments that primarily 
manufacture computers also produce peripherals to a significant degree. 
In Canada, a computer manufacturing industry would have a 
specialization ratio of only 70%. In addition, there is evidence that 
the lines between computer and peripheral equipment manufacturing are 
becoming less precise even in the U.S. The U.S. specialization ratio 
for computer manufacturing declined from 87% to 82% between 1987 and 
1992. As another example, a relatively broad NAICS industry was created 
for Semiconductor and Electronic Component Manufacturing, partly 
because any possible subdivisions are small or confidential in Canada 
and Mexico.
    Each country may publish additional national industries that 
comprise subdivisions of NAICS industries, to present data for 
activities that are nationally significant. Though these national 
industries are also constrained by the desire to preserve time series 
comparability within each country's statistics, so far as possible, the 
three countries are committed to increased international comparability 
of industrial statistics in these high technology sectors, as 
development in the three economies makes it feasible.
    Bringing electronic components and end products together in the 
classification has inevitably produced some anomalies at the boundary 
of the sector. For example, most of the traditional instrument 
industries have been located in this subsector because electronic 
measuring devices and instruments have rapidly displaced mechanical and 
electrical types that served similar functions. It was, however, not 
practical to split off all of the traditional forms of instruments, 
partly for the sake of preserving time series, partly because the 
establishments themselves have shifted from the old to the new 
technology, and partly because the rapid eclipse of some traditional 
instrument types may mean that an industry or industries for mechanical 
instrument manufacturing (in Miscellaneous Manufacturing) would soon 
become obsolete, even if it were established in NAICS. As a 
consequence, however, some activities that are neither electronic nor 
``high tech'' (watch springs, for example) appear anomalously in this 
subsector.
    For those users requiring detailed commodity information, each 
country will publish information on the products of these industries. 
Efforts are also underway to harmonize the commodity classifications to 
allow for greater comparability of these statistics.

Relationship to ISIC

    The Computer and Electronic Product Manufacturing subsector does 
not closely match any existing Division of the current International 
Standard Industrial Classification of all Economic Activities (ISIC, 
Revision 3) of the United Nations. Computers and peripherals are 
classified in ISIC Division 30, Manufacture of Office, Accounting and 
Computing Machinery. Communications equipment, audio and video 
equipment and most electronic components are in ISIC Division 32, 
Manufacture of Radio, Television and Communication Equipment and 
Apparatus. Navigational, measuring and controlling equipment are 
included in ISIC Division 33, Manufacture of Medical, Precision and 
Optical Instruments, Watches and Clocks. Other activities in this 
subsector are classified in three additional ISIC Divisions.
    However, of the eight NAICS 4-digit industries in this subsector, 
six of them are each contained entirely within a single ISIC Division. 
The other two NAICS industries cross two ISIC Divisions: Semiconductor 
and Electronic Component Manufacturing is largely included in ISIC 
Division 32, but includes the manufacture of electronic coils, 
transformers, connectors and switches that are classified in ISIC 
Division 31, Manufacture of Electrical Machinery and Apparatus, NEC. 
Manufacturing and Reproduction of Magnetic and Optical Media is split 
between ISIC Division 24, Manufacture of Chemicals and Chemical 
Products (the manufacture of media) and ISIC Division 22, Publishing, 
Printing and Reproduction of Recorded Media (mass duplication); in 
North America, these activities take place in the same establishments, 
so they are combined in NAICS.
    Most of ISIC Division 32 is included in this subsector. However, 
the other ISIC Divisions (31, 24 and 22) linked to the Computer and 
Electronic Component Manufacturing subsector all have significant 
activities that are classified elsewhere in NAICS.

Some Changes to the National Classifications

    For all countries, the creation of the Computer and Electronic 
Product Manufacturing subsector represents a significant change to the 
structure of the current national classifications.
    For Canada, the subsector is largely the sum of three industry 
groups in Electrical and Electronic Products Industries (CSIC 334, 335 
and 336) and instruments now in Other Manufacturing Industries (part of 
391). The amount of detail of this NAICS subsector is less than that 
contained in the Canadian classification.
    For Mexico, the Computer and Electronic Product Manufacturing 
subsector has coverage similar to the Mexican classification's 
Manufacture and Assembly of Electronic Radio, Television, 
Communications and Medical Equipment (CMAP 3832), combined with the 
computers and peripherals activities from Manufacture and Assembly of 
Office Calculating and Data Processing Machines (3823). The amount of 
detail of this NAICS subsector is similar to that of these areas of the 
Mexican classification.
    For the United States, this subsector includes activities from 
three major groups. Computers and peripherals are now in Computer and 
Office Equipment, 1987 Industry Group 357; instruments are now a large 
part of 1987 SIC Major Group 38, Measuring, Analyzing, and Controlling 
Instruments; Photographic, Medical and Optical Goods; Watches and 
Clocks; and the remaining NAICS activities in this subsector are 
largely classified in 1987 Major Group 36, Electronic and Other 
Electric Equipment (especially 365, 366 and 367). NAICS provides much 
less industry detail than the 1987 U.S. SIC. However, the U.S. national 
industries will provide similar detail below the NAICS industry level.

Achievement of Objectives

    The classification meets the objectives for the North American 
Industry Classification System (NAICS). It includes industries that 
group establishments with similar production processes, that is, it 
applies the production-oriented economic concept. The hierarchical 
structure of the classification also follows the production concept. 
For example, computer peripherals and electronic components are both 
used in the manufacture of computers; however, components are separated 
from peripherals in the hierarchy because the production process used 
in the manufacture of peripherals is more like

[[Page 26575]]

that of computers, with assembly of parts being important, while the 
manufacture of electronic components is driven by miniaturization 
techniques.
    The industries have high specialization ratios, and they are 
economically significant. Some are much larger than others, but this 
was necessitated by the considerations discussed above under 
Limitations and Constraints of the Classification. The classification 
is still suitable for sampling, data-publishing and other aspects of 
survey operations. Finally, while disruptions to time series exist, 
they are mostly at the level of the aggregation structure. The 
statistical agencies can develop statistical ``links'' to enable the 
re-tabulation of time series on the new NAICS classification structure.
    The classification achieves comparability for the three 
participating countries. Based on existing data, all three countries 
expect to be able to publish data regularly at the industry (4-digit) 
level of the structure. All countries agree on the detailed definitions 
of the industries.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the NAICS industry subsector 
presented in Part III, Section A--Attachment 1, contain less detail 
than is currently in the U.S. SIC system, and less detail than is 
required to meet important analytical requirements in the U.S. The 
three country agreement on NAICS envisions that each country may 
develop national detailed industries below the NAICS industry level, so 
long as the national detail can be aggregated to the NAICS 
classification, thus assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
subsector covered in Part III of this notice. For cases where no 5-
digit detail is shown, the ECPC is proposing that the NAICS 4-digit 
industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                     1997 NAICS & U.S. description     Status code      SIC           1987 SIC description      
                                                                        code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Computer and Electronic                                                                    
                      Product Manufacturing:                                                                    
XXX................    Computer and Peripheral                                                                  
                        Equipment Manufacturing:                                                                
XXXX...............      Computer and Peripheral                                                                
                         Equipment Manufacturing:                                                               
XXXXX..............      Electronic Computer        E                    3571  Electronic Computers.            
                          Manufacturing.                                                                        
XXXXX..............      Computer Storage Device    E                    3572  Computer Storage Devices.        
                          Manufacturing.                                                                        
XXXXX..............      Computer Terminal          E                    3575  Computer Terminals.              
                          Manufacturing.                                                                        
XXXXX..............      Other Computer Peripheral  R                    3577  Computer Peripheral Equipment,   
                          Equipment Manufacturing.                              NEC.                            
                                                                        *3578  Calculating and Accounting       
                                                                                Machines, Except Electronic.    
                                                                               Computers (point of sale         
                                                                                terminals and fund transfer     
                                                                                devices).                       
                                                                        *3699  Electrical Machinery Equipment   
                                                                                and Supplies, NEC (bar code     
                                                                                scanners).                      
XXX................    Communication Equipment                                                                  
                        Manufacturing:                                                                          
XXXX...............     Telephone Apparatus         R                   *3661  Telephone and Telegraph Apparatus
                         Manufacturing.                                         (except telephone transformers  
                                                                                and external PC consumer        
                                                                                modems).                        
XXXX...............     Broadcast and Studio        R                    3663  Radio and Television Broadcasting
                         Equipment for Radio, TV,                               and Communication Equipment.    
                         and Cable Manufacturing.                                                               
                                                                        *3679  Electronic Components, NEC       
                                                                                (communication equipment).      
XXXX...............     Other Communication         E                    3669  Communications Equipment, NEC.   
                         Equipment Manufacturing.                                                               
XXX................    Audio and Video Equipment                                                                
                        Manufacturing:                                                                          
XXXX...............     Audio and Video Equipment   E                    3651  Household Audio and Video        
                         Manufacturing.                                         Equipment.                      
XXX................    Semiconductor and                                                                        
                        Electronic Component                                                                    
                        Manufacturing:                                                                          
XXXX...............     Semiconductor and                                                                       
                         Electronic Component                                                                   
                         Manufacturing:                                                                         
XXXXX..............      Electron Tube              E                    3671  Electron Tubes.                  
                          Manufacturing.                                                                        
XXXXX..............      Printed Circuit Board      E                    3672  Printed Circuit Boards.          
                          Manufacturing.                                                                        
XXXXX..............      Semiconductor and Related  E                    3674  Semiconductors and Related       
                          Device Manufacturing.                                 Devices.                        
XXXXX..............      Electronic Capacitor       E                    3675  Electronic Capacitors.           
                          Manufacturing.                                                                        
XXXXX..............      Electronic Resistor        E                    3676  Electronic Resistors.            
                          Manufacturing.                                                                        
XXXXX..............      Electronic Coil,           R                   *3661  Telephone and Telegraph Apparatus
                          Transformer, and Other                                (telephone transformers).       
                          Inductor. Manufacturing.                                                              
                                                                         3677  Electronic Coils, Transformers,  
                                                                                and Other Inductors.            
                                                                        *3825  Instruments for Measuring and    
                                                                                Testing of Electricity and      
                                                                                Electrical Signals (portable    
                                                                                instrument transformers).       
XXXXX..............      Electronic Connector       E                    3678  Electronic Connectors.           
                          Manufacturing.                                                                        
XXXXX..............      Other Electronic           R                   *3661  Telephone and Telegraph Apparatus
                          Component Manufacturing.                              (external PC consumer modems).  
                                                                        *3679  Electronic Components, NEC (other
                                                                                electronic components including 
                                                                                loaded printed circuit boards). 
XXX................     Navigational, Measuring,                                                                
                        Medical, and Control                                                                    
                        Instrument Manufacturing:                                                               
XXXX...............     Navigational, Measuring,                                                                
                         Medical, and Control                                                                   
                         Instrument Manufacturing:                                                              

[[Page 26576]]

                                                                                                                
XXXXX..............      Search, Detection,         E                    3812  Search, Detection, Navigation,   
                          Navigation, Guidance,                                 Guidance, Aeronautical, and     
                          Aeronautical, and                                     Nautical Systems and            
                          Nautical System and                                   Instruments.                    
                          Instrument Manufacturing.                                                             
XXXXX..............      Automatic Control for      E                    3822  Automatic Controls for Regulating
                          Regulating Residential                                Residential and Commercial      
                          and Commercial                                        Environments and Appliances.    
                          Environment and                                                                       
                          Appliance Manufacturing.                                                              
XXXXX..............      Industrial Instrument for  E                    3823  Industrial Instruments for       
                          Measurement, Display,                                 Measurement, Display, and       
                          and Control of Process                                Control of Process Variables;   
                          Variables, and Related                                and Related Products.           
                          Products.                                                                             
XXXXX..............      Totalizing Fluid Meter     E                    3824  Totalizing Fluid Meters and      
                          and Counting Device                                   Counting Devices.               
                          Manufacturing.                                                                        
XXXXX..............      Instruments for Measuring  R                   *3825  Instruments for Measuring and    
                          and Testing of                                        Testing of Electricity and      
                          Electricity and                                       Electrical Signals (except      
                          Electrical Signal                                     portable instrument             
                          Manufacturing.                                        transformers).                  
XXXXX..............      Analytical Instrument      E                    3826  Laboratory Analytical            
                          Manufacturing.                                        Instruments.                    
XXXXX..............      Other Measuring and        R                   *3829  Measuring and Controlling        
                          Controlling Device                                    Devices, NEC (except medical    
                          Manufacturing.                                        thermometers).                  
XXXXX..............      Watch, Clock, and Part     R                   *3495  Wire Springs (clock and watch    
                          Manufacturing.                                        springs).                       
                                                                        *3579  Office Machines, NEC (time clocks
                                                                                and other time recording        
                                                                                devices).                       
                                                                         3873  Watches, Clocks, Clockwork       
                                                                                Operated Devices, and Parts.    
XXXXX..............      X-Ray Apparatus and Tubes  E                    3844  X-Ray Apparatus and Tubes and    
                          and Related Irradiation                               Related Irradiation Apparatus.  
                          Apparatus.                                                                            
XXXXX..............      Electromedical and         R                   *3842  Orthopedic, Prosthetic, and      
                          Electrotherapeutic                                    Surgical Appliances and Supplies
                          Apparatus.                                            (electronic hearing aids).      
                                                                         3845  Electromedical and               
                                                                                Electrotherapeutic Apparatus.   
XXX................    Manufacturing and                                                                        
                        Reproduction of Magnetic                                                                
                        and Optical Media:                                                                      
XXXX...............     Manufacturing and                                                                       
                         Reproduction of Magnetic                                                               
                         and Optical Media:                                                                     
XXXXX..............      Reproduction of Software.  R                   *7372  Prepackaged Software             
                                                                                (reproduction of software).     
XXXXX..............      Prerecorded Compact Disk,  N                   *3652  Phonograph Records and           
                          Except Software, Tape,                                Prerecorded Audio Tapes and     
                          and Record Manufacturing.                             Disks (reproduction of all other
                                                                                media except video).            
                                                                        *7819  Services Allied to Motion Picture
                                                                                Production (Reproduction of     
                                                                                video).                         
XXXXX..............      Magnetic and Optical       E                    3695  Magnetic and Optical Recording   
                          Recording Media                                       Media.                          
                          Manufacturing.                                                                        
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing; N--new industry; R--revised industry; and * means  
  ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                                       



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
3495....................................  Wire Springs:                                                         
                                            Clock and Watch Springs.......  Watch, Clock and Part Manufacturing 
                                                                             (pt).                              
                                            Wire Springs, Except Clock and  Wire Spring Manufacturing (Included 
                                             Watch Springs.                  in Fabricated Metal Product        
                                                                             Manufacturing subsector).          
3571....................................  Electronic Computers............  Electronic Computer Manufacturing.  
3572....................................  Computer Storage Devices........  Computer Storage Device             
                                                                             Manufacturing.                     
3575....................................  Computer Terminals..............  Computer Terminal Manufacturing.    
3577....................................  Computer Peripheral Equipment,    Other Computer Peripheral Equipment 
                                           NEC.                              Manufacturing (pt).                
3578@...................................  Calculating and Accounting                                            
                                           Machines, Except Electronic                                          
                                           Computers:                                                           
                                            Point of Sales Terminals and    Other Computer Peripheral Equipment 
                                             Fund Transfer Devices.          Manufacturing (pt).                
                                            Calculating and Accounting      Office Machinery Manufacturing (pt) 
                                             Machines, Except Point of       (Included in Machinery             
                                             Sales Terminals and Fund        Manufacturing subsector).          
                                             Transfer Devices.                                                  
3579@...................................  Office Machines, NEC:                                                 
                                            Pencil Sharpeners and Staplers  Lead Pencils, Crayons and Artists'  
                                                                             Supplies (pt) (Included in         
                                                                             Miscellaneous Manufacturing        
                                                                             subsector).                        
                                            Timeclocks and Other Time       Watch, Clock, and Part Manufacturing
                                             Recording Devices.              (pt).                              
                                            Other.........................  Office Machinery Manufacturing (pt) 
                                                                             (Included in Machinery             
                                                                             Manufacturing subsector).          
3651....................................  Household Audio and Video         Audio and Video Equipment           
                                           Equipment.                        Manufacturing.                     
3652@...................................  Phonograph Records and                                                
                                           Prerecorded Audio Tapes and                                          
                                           Disks:                                                               
                                            Record Publishing.............  (Included in Information subsector).

[[Page 26577]]

                                                                                                                
                                            Reproduction of All Other       Prerecorded Compact Disk, Tape and  
                                             Media Except Video.             Record Manufacturing (pt).         
                                            External PC Consumer Modems...  Other Electronic Component          
                                                                             Manufacturing (pt).                
                                            Telephone Transformers........  Electronic Coil, Transformer, and   
                                                                             Other Inductor Manufacturing (pt)  
                                                                             (Included in Electrical Equipment, 
                                                                             Appliance and Component            
                                                                             Manufacturing subsector).          
                                            Telephone and Telegraph         Telephone Apparatus Manufacturing.  
                                             Apparatus, Except Telephone                                        
                                             Transformers and Consumer                                          
                                             External Modems.                                                   
3663....................................  Radio and Television              Broadcast and Studio Equipment for  
                                           Broadcasting and Communication    Radio, TV, and Cable (pt)          
                                           Equipment.                        Manufacturing.                     
3669....................................  Communications Equipment, NEC...  Other Communication Equipment       
                                                                             Manufacturing.                     
3671....................................  Electron Tubes..................  Electron Tube Manufacturing.        
3672....................................  Printed Circuit Boards..........  Printed Circuit Board Manufacturing.
3674....................................  Semiconductors and Related        Semiconductor and Related Device    
                                           Devices.                          Manufacturing.                     
3675....................................  Electronic Capacitors...........  Electronic Capacitor Manufacturing. 
3676....................................  Electronic Resistors............  Electronic Resistor Manufacturing.  
3677....................................  Electronic Coils, Transformers,   Electronic Coil, Transformer, and   
                                           and Other Inductors.              Other Inductor Manufacturing (pt). 
3678....................................  Electronic Connectors...........  Electronic Connector Manufacturing. 
3679....................................  Electronic Components, NEC:                                           
                                            Communication Equipment.......  Broadcast and Studio Equipment for  
                                                                             Radio, TV and Cable Manufacturing  
                                                                             (pt).                              
                                            Electronic Control Modular      Electrical Equipment for Internal   
                                             Chips for Motor Vehicles.       Combustion Engine Manufacturing    
                                                                             (pt) (Included in Transportation   
                                                                             Equipment Manufacturing subsector).
                                            Other Electronic Components     Other Electronic Component          
                                             Including Loaded PC Boards.     Manufacturing (pt).                
3695....................................  Magnetic and Optical Recording    Magnetic and Optical Recording Media
                                           Media.                            Manufacturing,                     
3699@...................................  Electrical Machinery, Equipment,                                      
                                           and Supplies, NEC:                                                   
                                            Bar Code Scanners.............  Other Computer Peripheral Equipment 
                                                                             Manufacturing (pt).                
                                            Christmas Tree Lighting Sets    Other Lighting Equipment            
                                             and Electric Insect Lamps.      Manufacturing (pt) (To Be Included 
                                                                             in Electrical Equipment, Appliance 
                                                                             and Component Manufacturing        
                                                                             subsector).                        
                                            Electric Outboard Motor;......  Other Engine Manufacturing (pt)     
                                                                             (Included in Machinery             
                                                                             Manufacturing subsector).          
                                            Lasers........................  Classified according to function.   
                                            Other Electrical Machinery,     Other Electrical Industrial         
                                             Equipment, and Supplies.        Apparatus Manufacturing (pt)       
                                                                             (Included in Electrical Equipment, 
                                                                             Appliance, and Component           
                                                                             Manufacturing subsector).          
3812....................................  Search, Detection, Navigation,    Search, Detection, Navigation,      
                                           Guidance, Aeronautical, and       Guidance, Aeronautical, and        
                                           Nautical Systems and              Nautical System and Instrument     
                                           Instruments.                      Manufacturing.                     
3822....................................  Automatic Controls for            Automatic Control for Regulating    
                                           Regulating Residential and        Residential and Commercial         
                                           Commercial Environment and        Environment and Appliance          
                                           Appliances.                       Manufacturing.                     
3823....................................  Industrial Instruments for        Industrial Instrument for           
                                           Measurement, Display, and         Measurement, Display, and Control  
                                           Control of Process Variables;     of Process Variables; and Related  
                                           and Related Products.             Product Manufacturing.             
3824....................................  Totalizing Fluid Meters and       Totalizing Fluid Meter and Counting 
                                           Counting Devices.                 Device Manufacturing.              
3825....................................  Instruments for Measuring and                                         
                                           Testing of Electricity and                                           
                                           Electrical Signals:                                                  
                                            Portable Instrument             Electronic Coil, Transformer, and   
                                             Transformers.                   Other Inductor Manufacturing (pt). 
                                            Except Portable Instrument      Instruments for Measuring and       
                                             Transformers.                   Testing of Electricity and         
                                                                             Electrical Signal Manufacturing.   
3826....................................  Laboratory Analytical             Analytical Instrument Manufacturing.
                                           Instruments.                                                         
3829....................................  Measuring and Controlling                                             
                                           Devices, NEC:                                                        
                                            Medical Thermometers..........  Surgical Appliance and Supply       
                                                                             Manufacturing (pt) (Included in    
                                                                             Miscellaneous Manufacturing        
                                                                             Subsector).                        
                                            Except Medical Thermometers...  Other Measuring and Controlling     
                                                                             Device Manufacturing.              
3842@...................................  Orthopedic, Prosthetic, and                                           
                                           Surgical Appliances and                                              
                                           Supplies:                                                            
                                            Electronic Hearing Aids.......  Electromedical and                  
                                                                             Electrotherapeutic Apparatus (pt.).
                                            Other.........................  Surgical Appliance and Supply       
                                                                             Manufacturing (pt.) (To be Included
                                                                             in Miscellaneous Manufacturing     
                                                                             subsector).                        
3844....................................  X-Ray Apparatus and Tubes and     X-Ray Apparatus and Tubes and       
                                           Related Irradiation Apparatus.    Related Irradiation Apparatus.     
3845....................................  Electromedical and                Electromedical and                  
                                           Electrotherapeutic Apparatus.     Electrotherapeutic Apparatus (pt.).
3873....................................  Watches, Clocks, Clockwork        Watch, Clock, and Part Manufacturing
                                           Operated Devices and Parts.       (pt).                              
7372@...................................  Prepackaged Software:                                                 
                                            Reproduction of Software......  Reproduction of Software.           

[[Page 26578]]

                                                                                                                
                                            Other.........................  (Included in Information subsector).
7819@...................................  Services Allied to Motion                                             
                                           Picture Production                                                   
                                            Reproduction of Video.........  Prerecorded Compact Disk, Tape and  
                                                                             Record Manufacturing (pt).         
                                            Other.........................  (Included in Services subsector).   
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of'', @ means time series break has been created that is greater than 3% of
  the 1992 value of shipments for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere         
  Classified.                                                                                                   



Description of Changes to the U.S. System

    A number of the changes listed in this section were made for 
reasons of international comparability. Where one or more of the three 
North American countries had different definitions of an industry 
classification, adjustments to the definitions in one or more countries 
were required. In constructing NAICS, the three countries agreed to 
move, where change was required to attain international comparability, 
in the direction of the country or countries whose existing 
classification definitions most closely corresponded to the production-
oriented concept adopted for NAICS. Cases where the U.S. changed are 
listed below; other cases where Canada Mexico moved toward the U.S. 
classification are not, of course, listed in this section.
    This is a new subsector for 1997. Computer and Electronic Product 
Manufacturing is composed of industries from 1987 Major Group 35, 
Industrial Commercial Machinery and Computer Equipment; 1987 Major 
Group 36, Electronic and Other Electrical Equipment and Components, 
Except Computer Equipment; and 1987 Major Group 38, Measuring, 
Analyzing and Controlling Instruments; Photographic, Medical and 
Optical Goods; Watches and Clocks.
    The following four complete industries were transferred into this 
subsector from 1987 Major Group 35, Industrial Commercial Machinery and 
Computer Equipment:

SIC 3571, Electronic Computers
SIC 3572, Computer Storage Devices
SIC 3575, Computer Terminals
SIC 3577, Computer Peripheral Equipment, NEC

    The following twelve complete industries were transferred into this 
subsector from 1987 Major Group 36, Electronic and Other Electrical 
Equipment and Components, Except Computer Equipment:

SIC 3651, Household Audio and Video Equipment
SIC 3661, Telephone and Telegraph Apparatus
SIC 3663, Radio and Television Broadcasting and Communication Equipment
SIC 3669, Communications Equipment, NEC
SIC 3671, Electron Tubes
SIC 3672, Printed Circuit Boards
SIC 3674, Semiconductors and Related Devices
SIC 3675, Electronic Capacitors
SIC 3676, Electronic Resistors
SIC 3677, Electronic Coils, Transformers, and Other Inductors
SIC 3678, Electronic Connectors
SIC 3695, Magnetic and Optical Recording Media

    Eight complete industries were transferred into this subsector from 
1987 Major Group 38, Measuring, Analyzing and Controlling Instruments; 
Photographic, Medical and Optical Goods; Watches and Clocks. Those 
industries are:

SIC 3812, Search, Detection, Navigation, Guidance, Aeronautical, and 
Nautical Systems and Instruments
SIC 3822, Automatic Controls for Regulating Residential and Commercial 
Environments and Appliances
SIC 3823, Industrial Instruments for Measurement, Display, and Control 
of Process Variables; and Related Products
SIC 3824, Totalizing Fluid Meters and Counting Devices
SIC 3826, Laboratory Analytical Instruments
SIC 3844, X-Ray Apparatus and Tubes and Related Irradiation Apparatus
SIC 3845, Electromedical and Electrotherapeutic Apparatus
SIC 3873, Watches, Clocks, Clockwork Operated Devices, and Parts

    These 34 complete industries were transferred into this new 
subsector for one or more of the following reasons: (1) the changes 
were in response to public requests; (2) the changes were supported by 
similar processes; and (3) the changes produced international 
comparability.
    One industry, SIC 3825, Instruments for Measuring and Testing of 
Electricity and Electrical Signals, moved in its entirety to this 
subsector, but was split; portable instrument transformers to NAICS 
industry, Electronic Coil, Transformer, and other Inductor 
Manufacturing, and the rest going to NAICS industry, Instruments for 
Measuring and Testing of Electricity and Electrical Signal 
Manufacturing.
    Two new industries were formed from very similar activities that 
were formerly partly included in manufacturing and partly in services.
    Prerecorded Compact Disk, Except Software, Tape, and Record 
Manufacturing was formed from part of 1987 SIC 3652, Phonograph Records 
and Prerecorded Audio Tapes and Disks, and from part of 1987 SIC 7819, 
Services Allied to Motion Picture Production.
    Reproduction of Software was created from part of 1987 SIC 7372, 
Prepackaged Software. The ECPC recognizes that some establishments 
combine the production of prepackaged software and the production of 
other prerecorded compact disks, tapes, and records and that the 
production process is often the same. Therefore, it may be necessary to 
combine these activities into one industry. The ECPC requests specific 
comments on this proposal. (The publishing portions of these three 1987 
SIC industries have been moved to the new NAICS Information sector.) 
These changes are made in response to an industry proposal, to improve 
international comparability, and to recognize that the production of 
prepackaged software is a manufacturing, not a services, activity.
    Eleven activities were transferred into 1997 Computer and 
Electronic Product Manufacturing.
    Point of sales terminals and fund transfer devices were transferred 
from 1987 SIC 3578, Calculating and Accounting Machines, Except 
Electronic Computers, into Other Computer Peripheral Equipment 
Manufacturing, in response to a proposal from the industry and to 
create a better production-oriented industry.
    Time clocks and other time recording devices were transferred from 
1987 SIC 3579, Office Machines, NEC, into Watch, Clock and Part 
Manufacturing.

[[Page 26579]]

This improves international comparability and is supported by 
similarity in production processes.
    Phonograph records and prerecorded audio tapes and disks, except 
record publishing, were transferred from 1987 SIC 3652, Phonograph 
Records and Prerecorded Audio Tapes and Disks, into Prerecorded Compact 
Disk, Tape, and Record Manufacturing. This improves international 
comparability and is supported by similarity in production processes.
    Telephone and telegraph apparatus, except telephone transformers 
and consumer external PC modems, were transferred from 1987 SIC 3661, 
Telephone and Telegraph Apparatus, into Telephone Apparatus 
Manufacturing. This improves international comparability and is 
supported by similarity in production processes.
    The communication equipment formerly in 1987 SIC 3679, Electronic 
Components, NEC, was transferred into Broadcast and Studio Equipment 
Manufacturing for Radio, TV, and Cable. This improves international 
comparability and is supported by similarity in production processes.
    Other electronic components, including loaded printed circuit 
boards, were transferred from 1987 SIC 3679, Electronic Components, 
NEC, into Other Electronic Component Manufacturing. This improves 
international comparability and is supported by similarity in 
production processes.
    Other measuring and controlling devices, except medical 
thermometers, were transferred from 1987 SIC 3829, Measuring and 
Controlling Devices, NEC, into Other Measuring and Controlling Device 
Manufacturing. This improves international comparability and is 
supported by similarity in production processes.
    Bar code scanners were transferred from 1987 SIC 3699, Electrical 
Machinery, Equipment and Supplies, NEC, into Other Computer Peripheral 
Equipment Manufacturing. This improves international comparability and 
is supported by similarity in production processes.
    Reproduction of software was transferred from 1987 SIC 7372, 
Prepackaged Software, into Reproduction of Software. This improves 
international comparability and is supported by similarity in 
production processes.
    Reproduction of video was transferred from 1987 SIC 7819, Services 
Allied to Motion Picture Production, into Magnetic and Optical Media 
Manufacturing. This improves international comparability and is 
supported by similarity in production processes.
    Clock and watch springs were transferred from 1987 SIC 3495, Wire 
Springs, into Watch, Clock, and Part Manufacturing. This improves 
international comparability with Mexico, Canada, and the ISIC.
    There are 29 industries in this new subsector. For time series 
linkage 19 of the 29 1997 industries are comparable within three 
percent of the old 1987 industries.

Part IV--Proposed New Industry Structure for Furniture Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 14

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

Furniture Manufacturing

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on September 27, 1995 -September 29, 1995 in 
Mexico City, Mexico.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    9/29/95
Mexico..............................  /S/ Enrique Ordaz......    9/29/95
United States.......................  /S/ Jack E. Triplett...    9/29/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Furniture Manufacturing
XXX  Furniture Manufacturing
XXXX  Mattress Manufacturing
XXXX  Blind and Shade Manufacturing
XXXX  Wood Furniture Manufacturing
XXXX  Metal Furniture Manufacturing
XXXX  Other Furniture Manufacturing

Attachment 2--North American Industry Classification System

    Draft Classification for:

Furniture Manufacturing

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industrial classification for these 
industries.
    The draft classification applies to the subsector, Furniture 
Manufacturing. This subsector contains one industry group and five 
industries. The subsector will be part of the Manufacturing sector of 
the classification.

A General Outline

    Furniture Manufacturing includes establishments that produce 
articles such as chairs, beds, mattresses, dressers, tables and desks 
for human comfort, convenience and utility. Processes used in the 
manufacture of furniture include the cutting, bending, molding, 
laminating and assembly of such materials as wood, metal, glass, 
plastics, and rattan. In addition, design and fashion trends play an 
important part in the production of furniture. The production process 
for furniture is not solely bending metal, cutting and shaping wood, or 
extruding and molding plastic. The integrated design of the article for 
esthetic qualities, and to carry out its function efficiently, is also 
a major part of the process of manufacturing furniture, though design 
services are also sometimes purchased by furniture manufacturers from 
industrial designers.
    Furniture manufacturing establishments tend to specialize in making 
articles primarily from one material, such as wood or metal, because 
the production processes required to make a wooden table, for example, 
are quite different from the production processes for metal tables. 
However, it is unusual to make furniture exclusively from a single 
input. A wooden table might have metal brackets and a wooden chair a 
fabric or plastic seat.
    Some of the processes used in furniture manufacturing are similar 
to processes that are used in other segments of manufacturing. For 
example, cutting and assembly occurs in the production of wood trusses 
that are classified in the Wood Product Manufacturing, Except Furniture 
subsector. However, the multiple processes that distinguish wood 
furniture manufacturing from wood product manufacturing warrant 
inclusion of wooden furniture manufacturing in the Furniture 
Manufacturing subsector. Metal furniture manufacturing uses techniques 
that are also employed in the manufacturing of roll formed products in 
the Fabricated Metal Product Manufacturing sector. The molding

[[Page 26580]]

process for plastic furniture is similar to the molding of other 
plastic products. However, plastic furniture producing establishments 
tend to specialize in furniture.
    Though the production processes, products, and industry practices 
in furniture manufacturing are relatively mature ones, the existing 
classification structures in the three North American countries 
differed so extensively that substantial restructuring in all three 
countries was required in order to achieve international comparability. 
Even so, international comparability could be achieved only at a 
relatively high level of aggregation (for example, wood furniture 
manufacturing). Barriers to further expansion in NAICS detail are 
discussed in the following section, and additional information may be 
provided by countries in discussions of their own national industries.

Limitations and Constraints of the Classification

    In the Furniture Manufacturing industries, most activities that 
were identified in one country exist in the others. However, often an 
activity is not economically significant to the same degree in all 
countries. For example, wood office furniture manufacturing in Canada 
is too small to publish, and wood store furniture manufacturing is too 
small to publish in both Canada and Mexico.
    It is not always possible to separately identify production process 
industries for end use categories. For example, United States 
manufacturers tend to specialize in household furniture or office 
furniture because differences in uses require differences in 
production. However, in Mexico household and office furniture are often 
produced in the same establishment, and some blurring of the household/
office distinction is apparent even in the U.S.
    For these reasons, only broad categories for wood and metal 
furniture and furniture made from other materials were created for 
NAICS. Each country will publish additional categories that comprise 
subdivisions of NAICS industries to present data for activities that 
are nationally significant.
    For those users requiring detailed commodity information, each 
country will publish information on the products of these industries. 
Efforts are also underway to harmonize the commodity classifications to 
allow for greater comparability of these statistics.

Relationship to ISIC

    Most 4-digit NAICS industries in this subsector are contained 
within Class 3610, Manufacture of Furniture, of the current 
International Standard Industrial Classification of all Economic 
Activities (ISIC, Revision 3) of the United Nations. A notable 
exception is the manufacture of blinds and shades that ISIC classifies 
into different ISIC divisions by type of input material. In North 
America, production of blinds and shades of multiple materials occurs 
in a single establishment, so it is neither possible nor desirable to 
separate them by type of material in the classification system. For 
this reason, both Mexico and the United States currently classify all 
blind and shade manufacturing in a single industry. Other differences 
between NAICS and ISIC include the classification of wood and metal 
partitions and serving carts, which are placed in the respective wood 
or metal products divisions of ISIC. In NAICS, these manufacturing 
activities are placed in Furniture Manufacturing since the 
manufacturing processes are essentially identical to those used for 
furniture.
    In spite of these differences, this NAICS subsector is 
substantially the same as ISIC Class 3610, because most of the 
production in this subsector occurs in the industries that are 
compatible with this ISIC class.

Some Changes to the National Classifications

    For Canada, the NAICS Furniture Manufacturing subsector 
restructures the existing classification from an end use classification 
to a production process and input form, i.e., into wood, metal, and 
other furniture industries. In the case of wood furniture, the Canadian 
classification was structured both by input raw material (wood) and by 
end use, i.e., wooden household and upholstered household furniture. 
For furniture of metal and other materials, Canadian industries were 
restructured to the NAICS pattern. Other Canadian changes include the 
movement of wooden kitchen cabinets and bathroom vanities from the Wood 
Industries major group to this subsector, and the grouping of all kinds 
of shades, blinds and window hardware into a single NAICS industry.
    For Mexico, the significant change is one of concept. Formerly, 
Mexico had no separately identified furniture subsector. Thus, this 
subsector will be entirely new. Changes at the industry level are 
relatively small, as the current structure in Mexico classifies wood 
furniture in the wood product manufacturing industries, metal furniture 
in the fabricated metal manufacturing industries, etc.
    For the United States, changes parallel those in Canada. The 
existing U.S. structure classifies furniture by both inputs and end use 
in some detail. Like Canada, the U.S. structure has considerable detail 
for wood furniture, but unlike Canada, the U.S. also has substantial 
detail for metal furniture. A considerable amount of internal 
restructuring was required to achieve the NAICS design. However, the 
U.S. will retain substantial national industry detail below the level 
of the NAICS Furniture Manufacturing industries, e.g., wood household 
furniture is distinguished from wood office furniture at the 5-digit 
national detail level.
    Another important change for the United States is the inclusion of 
custom furniture in this sector. The manufacture of custom furniture 
was formerly classified in the retail sector. The change was made to 
agree with the Canadian and Mexican classification of the activity 
because the Canadian and Mexican treatment meets the production-
oriented criterion for NAICS. Other changes include the movement of 
wood kitchen cabinets and wooden chair frames from the 1987 SIC Lumber 
and Wood Products, Except Furniture major group because the production 
processes are essentially identical to those for furniture.

Achievement of Objectives

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

[[Page 26581]]

digit) level and structures of the classification are balanced in size. 
This enhances the classification's suitability for sampling and other 
aspects of survey operations. Finally, though disruptions to time 
series exist, the major changes are well identified and can be taken 
into account in linking time series.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the NAICS industry subsector 
presented in Part IV, Section A--Attachment 1, contain less detail than 
is currently in the U.S. SIC system, and less detail than is required 
to meet important analytical requirements in the U.S. The three country 
agreement on NAICS envisions that each country may develop national 
detailed industries below the NAICS industry level, so long as the 
national detail can be aggregated to the NAICS classification, thus 
assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
industry subsector covered in Part IV of this notice. For cases where 
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Furniture Manufacturing:                                                                   
XXX................    Furniture Manufacturing:                                                                 
XXXX...............     Mattress Manufacturing....  E                    2515  Mattresses and Bedsprings.       
XXXX...............     Blind and Shade             E                    2591  Drapery Hardware and Blinds and  
                         Manufacturing                                          Shades.                         
XXXX...............     Wood Furniture                                                                          
                         Manufacturing:                                                                         
XXXXX..............      Wood Household Furniture   R                   *2426  Hardwood Dimension and Flooring  
                          Manufacturing, Except                                 Mills (wooden chair frames and  
                          Upholstered.                                          chair seats).                   
                                                    ................    *2499  Wood Products, NEC (wood laundry 
                                                                                hampers).                       
                                                    ................     2511  Wood Household Furniture, Except 
                                                                                Upholstered.                    
                                                    ................     2517  Wood TV and, Radio Cabinets.     
                                                    ................    *5712  Furniture Stores (custom made    
                                                                                furniture except cabinets).     
XXXXX..............      Wood Kitchen Cabinet       R                    2434  Wood Kitchen Cabinets.           
                          Manufacturing                                                                         
                                                    ................    *5712  Furniture Stores (custom wood    
                                                                                cabinets).                      
XXXXX..............      Upholstered Wood           E                    2512  Wood Household Furniture,        
                          Household Furniture                                   Upholstered.                    
                          Manufacturing                                                                         
XXXXX..............      Wood Office and Public     R                   *2426  Hardwood Dimension and Flooring  
                          Building Furniture                                    Mills (office chair frames and  
                          Manufacturing.                                        chair seats).                   
                                                    ................    *2521  Wood Office Furniture.           
                                                    ................    *2531  Public Building and Related      
                                                                                Furniture (wood furniture for   
                                                                                public buildings).              
                                                    ................    *2599  Furniture and Fixtures, NEC (wood
                                                                                industrial work benches and     
                                                                                stools, and other wood furniture
                                                                                such as ship furniture).        
                                                    ................    *3952  Lead Pencils, Crayons, and       
                                                                                Artists' Materials (wood        
                                                                                drafting tables and boards).    
XXXXX..............      Wood Office and Store      R                   *2541  Wood Office and Store Fixtures,  
                          Fixture, Partition,                                   Partitions, Shelving, and       
                          Shelving, and Locker                                  Lockers (except custom          
                          Manufacturing.                                        architectural woodwork,         
                                                                                millwork, and fixtures).        
XXXXX..............      Custom Architectural       N                   *2541  Wood Office and Store Fixtures,  
                          Woodwork, Millwork, and                               Partitions, Shelving, and       
                          Fixtures.                                             Lockers (architectural woodwork,
                                                                                millwork, and fixtures).        
XXXX...............     Metal Furniture                                                                         
                         Manufacturing:                                                                         
XXXXX..............      Metal Household Furniture  R                    2514  Metal Household Furniture.       
                          Manufacturing.                                                                        
                                                    ................    *3499  Fabricated Metal Products, NEC   
                                                                                (metal household frames and     
                                                                                furniture parts).               
XXXXX..............      Metal Office and Public    R                   *2522  Office Furniture, Except Wood    
                          Building Furniture                                    (metal office furniture).       
                          Manufacturing.                                                                        
                                                    ................    *2531  Public Building and Related      
                                                                                Furniture (metal furniture for  
                                                                                public buildings).              
                                                    ................    *2599  Furniture and Fixtures, NEC      
                                                                                (metal industrial work benches  
                                                                                and stools, and other metal     
                                                                                furniture such as ship          
                                                                                furniture).                     
                                                    ................    *3499  Fabricated Metal Products, NEC   
                                                                                (metal frames and furniture     
                                                                                parts).                         
                                                    ................    *3952  Lead Pencils, Crayons, and       
                                                                                Artists' Materials (metal       
                                                                                drafting tables and boards).    
                                                    ................    *3999  Manufacturing Industries, NEC    
                                                                                (barber and beauty chairs).     
XXXXX..............      Metal Office and Store     R                   *2542  Office and Store Fixtures,       
                          Fixture, Partition,                                   Partitions, Shelving and        
                          Shelving and Locker                                   Lockers, Except Wood (metal     
                          Manufacturing.                                        office and store fixtures,      
                                                                                partitions, shelving, and       
                                                                                lockers).                       
XXXX...............     Other Furniture             R                   *2499  Wood Products, NEC (laundry      
                         Manufacturing.                                         hampers made from rattan, reed  
                                                                                or willow)                      
                                                    ................     2519  Household Furniture, NEC.        
                                                    ................    *2522  Office Furniture, Except Wood    
                                                                                (office furniture not made of   
                                                                                wood or metal).                 
                                                    ................    *2531  Public Building and Related      
                                                                                Furniture (other furniture not  
                                                                                made of wood or metal for public
                                                                                buildings).                     

[[Page 26582]]

                                                                                                                
                                                    ................    *2542  Office and Store Fixtures,       
                                                                                Partitions, Shelving and        
                                                                                Lockers, Except Wood (office and
                                                                                store fixtures, partitions,     
                                                                                shelving, and lockers not made  
                                                                                of metal).                      
                                                    ................    *2599  Furniture and Fixtures, NEC      
                                                                                (other furniture or fixtures).  
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and 
  * means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                               



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
2426....................................  Hardwood Dimension and Flooring                                       
                                           Mills:                                                               
                                            Hardwood Flooring.............  Millwork Manufacturing, Including   
                                                                             Flooring (pt) (Included in the Wood
                                                                             Product Manufacturing, Except      
                                                                             Furniture subsector).              
                                             Stock and Turnings...........  Other Wood Product Manufacturing    
                                                                             (pt) (Included in the Wood Product 
                                                                             Manufacturing, Except Furniture    
                                                                             subsector).                        
                                            Office Chair Frames and Chair   Wood Office and Public Building     
                                             Seats.                          Furniture Manufacturing (pt).      
                                            Chair Frames for                Wood Household Furniture            
                                             Nonupholstered Furniture        Manufacturing, Except Upholstered  
                                             (Household).                    (pt).                              
                                            Chair Frames for Upholstered    Upholstered Wood Household Furniture
                                             Furniture (Household).          Manufacturing (pt).                
                                            Hardwood Dimension Except       Hardwood Dimension Mills (Included  
                                             Flooring.                       in the Wood Product Manufacturing, 
                                                                             Except Furniture subsector).       
2434....................................  Wood Kitchen Cabinets...........  Wood Kitchen Cabinet Manufacturing  
                                                                             (pt).                              
2499....................................  Wood Products, NEC:                                                   
                                            Wood Tubs and Vats, Jewelry     Other Wood Container Manufacturing  
                                             and Cigar Boxes.                (pt) (Included in the Wood Product 
                                                                             Manufacturing, Except Furniture    
                                                                             subsector).                        
                                            Wood Laundry Hampers..........  Wood Household Furniture            
                                                                             Manufacturing, Except Upholstered  
                                                                             (pt).                              
                                            Laundry Hampers Made from       Other Furniture Manufacturing (pt). 
                                             Rattan, Reed or Willow.                                            
2511@...................................  Wood Household Furniture, Except  Wood Household Furniture            
                                           Upholstered.                      Manufacturing, Except Upholstered  
                                                                             (pt).                              
2512....................................  Wood Household Furniture,         Upholstered Wood Household Furniture
                                           Upholstered.                      Manufacturing.                     
2514....................................  Metal Household Furniture.......  Metal Household Furniture           
                                                                             Manufacturing (pt).                
2515....................................  Mattresses and Bedsprings.......  Mattress Manufacturing.             
2517@...................................  Wood TV and, Radio Cabinets.....  Wood Household Furniture            
                                                                             Manufacturing, Except Upholstered  
                                                                             (pt).                              
2519@...................................  Household Furniture, NEC........  Other Furniture Manufacturing (pt). 
2521....................................  Wood Office Furniture...........  Wood Office and Public Building     
                                                                             Furniture Manufacturing (pt).      
2522@...................................  Office Furniture, Except Wood:..                                      
                                            Metal Office Furniture........  Metal Office Furniture Manufacturing
                                                                             (pt).                              
                                          Office Furniture Not Made of      Other Furniture Manufacturing (pt). 
                                           Wood or Metal.                                                       
2531@...................................  Public Building and Related                                           
                                           Furniture:                                                           
                                            Blackboards...................  All Other Miscellaneous             
                                                                             Manufacturing (pt) (To Be Included 
                                                                             in Miscellaneous Manufacturing     
                                                                             subsector).                        
                                            Seats for Motor Vehicles......  Motor Vehicle Fabric Accessory and  
                                                                             Seat Manufacturing (pt) (Included  
                                                                             in Transportation Equipment        
                                                                             Manufacturing subsector).          
                                            Metal Furniture for Public      Metal Office and Public Building    
                                             Building.                       Furniture Manufacturing (pt).      
                                            Wood Furniture for Public       Wood Office and Public Building     
                                             Building.                       Furniture Manufacturing (pt).      
                                            Other Furniture Not Made of     Other Furniture Manufacturing (pt). 
                                             Wood or Metal for Public                                           
                                             Buildings.                                                         
2541@...................................  Wood Office and Store Fixtures,                                       
                                           Partitions, Shelving, and                                            
                                           Lockers:                                                             
                                            Except Architectural Woodwork,  Wood Office and Store Fixture,      
                                             Millwork and Fixtures.          Partition, Shelving and Locker     
                                                                             Manufacturing (pt.).               
                                            Custom Architectural Woodwork,  Custom Architectural Woodwork,      
                                             Millwork and Fixtures.          Millwork, and Fixtures.            
2542@...................................  Partitions and Fixtures, Except                                       
                                           Wood:                                                                
                                            Metal Office and Store          Metal Office and Store Fixture,     
                                             Fixtures, Partitions,           Partition, Shelving and Locker     
                                             Shelving, and Lockers.          Manufacturing (pt).                
                                            Office and Store Fixtures,      Other Furniture Manufacturing (pt). 
                                             Partitions, Shelving, and                                          
                                             Lockers Not Made of Metal.                                         
2591....................................  Drapery Hardware and Blinds and   Blind and Shade Manufacturing.      
                                           Shades.                                                              
2599@...................................  Furniture and Fixtures, NEC:                                          
                                            Hospital Beds.................  Orthopedic, Prosthetic and Surgical 
                                                                             Appliance and Supply Manufacturing 
                                                                             (pt) (To Be Included in            
                                                                             Miscellaneous Manufacturing        
                                                                             subsector).                        

[[Page 26583]]

                                                                                                                
                                            Metal Industrial Work Benches   Metal Office and Public Building    
                                             and Stools, and Other Metal     Furniture Manufacturing (pt).      
                                             Furniture Such As Ship                                             
                                             Furniture.                                                         
                                            Wood Industrial Work Benches    Wood Office and Public Building     
                                             and Stools, and Other Wood      Furniture Manufacturing (pt).      
                                             Furniture Such As Ship                                             
                                             Furniture.                                                         
                                            Other Furniture and Fixtures..  Other Furniture Manufacturing (pt). 
3499....................................  Fabricated Metal Products, NEC:                                       
                                            Metal Frames and Furniture      Metal Household Furniture           
                                             Parts, Household.               Manufacturing (pt).                
                                            Metal Frames and Furniture      Metal Office and Public Building    
                                             Parts, Office.                  Furniture Manufacturing (pt).      
                                             Powder Metallurgy............  Metal Stamping and Powder Metallurgy
                                                                             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
                                            Metal Boxes...................  Metal Shipping Container, Barrel,   
                                                                             Drum, Keg, Pail, Bin, Box, etc.    
                                                                             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
  Safe and Vault Locks                    Hardware Manufacturing,                                               
                                           Including Locks (pt) (Included                                       
                                           in Fabricated Metal Product                                          
                                           Manufacturing subsector)..                                           
                                            Metal Aerosol Valves..........  Other Valve and Pipe Fitting        
                                                                             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
                                            Other Metal Products..........  All Other Miscellaneous Fabricated  
                                                                             Metal Product Manufacturing (pt)   
                                                                             (Included in Fabricated Metal      
                                                                             Product Manufacturing subsector).  
3952@...................................  Lead Pencils, Crayons, and                                            
                                           Artist's Materials:                                                  
                                            Metal Drafting Tables and       Metal Office and Public Building    
                                             Boards.                         Furniture Manufacturing (pt).      
                                            Wood Drafting Tables and        Wood Office and Public Building     
                                             Boards.                         Furniture Manufacturing (pt).      
                                            Drawing and India Ink.........  Printing Ink Manufacturing (pt)     
                                                                             (Included in Chemical Manufacturing
                                                                             subsector).                        
                                            Other.........................  Lead Pencil and Art Goods           
                                                                             Manufacturing (pt) (To be included 
                                                                             in Miscellaneous Manufacturing     
                                                                             subsector).                        
3999....................................  Manufacturing Industries, NEC:..                                      
                                            Beauty and Barber Chairs......  Metal Office and Public Building    
                                                                             Furniture Manufacturing (pt).      
                                            Burnt Wood Articles...........  Other Wood Product Manufacturing    
                                                                             (pt) (Included in Wood Product     
                                                                             Manufacturing, Except Furniture    
                                                                             subsector).                        
                                            Fur Bleaching, Currying,        Leather and Hide Tanning and        
                                             Scraping, Tanning and Dyeing.   Finishing Manufacturing (pt)       
                                                                             (Included in Leather and Allied    
                                                                             Product Manufacturing subsector)   
                                            Lamp Shades of Paper and        Other Lighting Equipment            
                                             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 As Combs,  All Other Fabricated Metal Product  
                                             Hair Curlers, Etc..             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
                                            Plastics Products, Such As      All Other Plastic Product           
                                             Combs, Hair Curlers, Etc..      Manufacturing (pt) (Included in    
                                                                             Rubber and Plastic Product         
                                                                             Manufacturing subsector).          
                                            Flexographic Printing Eyeglass  Commercial Flexographic Printing    
                                             Frames for the Trade.           (pt) (Included in Printing and     
                                                                             Related Support Activities         
                                                                             subsector).                        
                                            Gravure Printing Eyeglass       Commercial Gravure Printing (pt)    
                                             Frames for the Trade.           (Included in Printing and Related  
                                                                             Support Activities subsector).     
                                            Lithographic Printing Eyeglass  Commercial Lithographic Printing    
                                             Frames for the Trade.           (pt) (Included in Printing and     
                                                                             Related Support Activities         
                                                                             subsector).                        
                                            Screen Printing Eyeglass        Commercial Screen Printing (pt)     
                                             Frames for the Trade.           (Included in Printing and Related  
                                                                             Support Activities subsector).     
                                            Other Printing Eyeglass Frames  Other Commercial Printing (pt) (    
                                             for the Trade.                  Included in Printing and Related   
                                                                             Support Activities subsector).     
                                            Tape Measures.................  Hand and Edge Tool Manufacturing    
                                                                             (pt) (Included in Fabricated Metal 
                                                                             Product Manufacturing subsector).  
                                            Other.........................  All Other Miscellaneous             
                                                                             Manufacturing (pt) (To Be Included 
                                                                             in Miscellaneous Manufacturing     
                                                                             subsector).                        
5712....................................  Furniture Stores:                                                     
                                            Custom Made Furniture, Except   Wood Household Furniture            
                                             Cabinets.                       Manufacturing, Except Upholstered  
                                                                             (pt).                              
                                            Custom Wood Cabinets..........  Wood Kitchen Cabinet Manufacturing  
                                                                             (pt).                              
                                            Other Than Custom Made          To Be Included in the Retail sector.
                                             Furniture.                                                         
----------------------------------------------------------------------------------------------------------------
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.                                                                                                   



[[Page 26584]]

Description of Changes to the U.S. System

    A number of the changes listed in this section were made for 
reasons of international comparability. Where one or more of the three 
North American countries had different definitions of an industry 
classification, adjustments to the definitions in one or more countries 
were required. In constructing NAICS, the three countries agreed to 
move, where change was required to attain international comparability, 
in the direction of the country or countries whose existing 
classification definitions most closely corresponded to the production-
oriented concept adopted for NAICS. Cases where the U.S. changed are 
listed below; other cases where Canada or Mexico moved toward the U.S. 
classification are not, of course, listed in this section.
    Three activities were transferred out of 1987 SIC Furniture major 
group.
    Motor vehicle seats were transferred from part of 1987 SIC 2531, 
Public Building and Related Furniture, into Motor Vehicle Fabric 
Accessory and Seat Manufacturing in the 1997 NAICS subsector for 
Transportation Equipment Manufacturing. This change was made for 
international comparability and because there is very little production 
similarity between the manufacture of automobile seats and the 
production of church pews and like products that are in 1987 SIC 2531.
    Hospital beds were transferred from part of 1987 SIC 2599, 
Furniture and Fixtures, NEC, into Orthopedic, Prosthetic, and Surgical 
Appliance and Supply Manufacturing in the 1997 NAICS subsector for 
Miscellaneous Manufacturing. This change was necessary to align the 
U.S. classification to that of Canada and Mexico.
    Blackboards were transferred from part of 1987 SIC 2531, Public 
Building and Related Furniture, into All Other Miscellaneous 
Manufacturing in the 1997 NAICS subsector for Miscellaneous 
Manufacturing. This change was necessary to align the U.S. 
classification system with that of Mexico.
    Eight activities were transferred into the 1997 NAICS Furniture 
Manufacturing subsector. Three of the eight were transformed from 1987 
SIC NEC industries.
    Wooden chair frames and seats were transferred from part of 1987 
SIC 2426, Hardwood Dimension and Flooring Mills, and classified in this 
subsector. This change was necessary to align the U.S. classification 
with that of Mexico and Canada, and because the production processes 
are similar.
    Wood laundry hampers were transferred from part of 1987 SIC 2499, 
Wood Products, NEC, and placed by component material in their 
respective NAICS industries. This change was necessary to align the 
U.S. classification with that of Canada.
    Custom wood household furniture was transferred from part of 1987 
Retail Industry SIC 5712, Furniture Stores, into Wood Household 
Furniture. This change was necessary to align the U.S. classification 
with that of Mexico and Canada, and because the production process is 
essentially that of furniture manufacturing and the retailing activity 
is subsidiary.
    Wood kitchen cabinets were transferred from 1987 SIC Major Group 
24, Lumber and Wood Products, Except Furniture. This change reflects 
production processes that are essentially identical with those for 
furniture. The change also facilitated and increased the international 
comparability with Canada and Mexico.
    Custom wood kitchen cabinets were transferred from part of 1987 
Retail SIC 5712, Furniture Stores, into Wood Kitchen Cabinet 
Manufacturing, for international comparability, as noted above.
    Drafting tables and boards were transferred from 1987 SIC 3952, 
Lead Pencils, Crayons, and Artists' Materials, and classified in the 
Furniture Manufacturing subsector. This change was necessary to align 
the U.S. classification with that of Canada and Mexico, and because the 
production process is similar to other furniture manufacturing.
    Metal frames and furniture parts were transferred from 1987 SIC 
3499, Fabricated Metal Products, NEC, and classified in the Furniture 
Manufacturing subsector. This change was necessary to align the U.S. 
classification with that of Canada.
    Barber and beauty chairs were transferred from 1987 SIC 3999, 
Manufacturing Industries, NEC, into Metal Office Furniture 
Manufacturing. This change was necessary to reflect the common 
production processes and similarities between beauty and barber shop 
chair manufacturers and other furniture manufacturers.
    A new industry was created for Custom Architectural Woodwork, 
Millwork, and Fixtures from part of SIC 2541, Wood Office and Store 
Fixtures, Partitions, Shelving and Lockers.
    Also several activities were transferred within the Furniture 
Manufacturing subsector.
    In addition, 1987 SIC 2517, Wood TV and Radio Cabinets, was 
combined with Wood Household Furniture Manufacturing because production 
in 1987 SIC 2517 has declined in the U.S. and the production processes 
are similar in both industries.
    The number of Furniture Manufacturing industries declined from 13 
in 1987 to 12 in 1997. For time series linkage, seven of the 13 1987 
industries are comparable within three percent of the 1997 industries.

Part V--Proposed New Industry Structure for Printing and Related 
Support Activities.

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 15

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

Printing and Related Support Activities

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on September 27, 1995-September 29, 1995 in 
Mexico City, Mexico.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    9/29/95
Mexico..............................  /S/ Enrique Ordaz......    9/29/95
United States.......................  /S/ Jack E. Triplett...    9/29/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Printing and Related Support Activities
XXX  Printing and Related Support Activities
XXXX  Printing
XXXX  Support Activities for Printing

Attachment 2--North American Industry Classification System

    Draft Classification for:
Printing and Related Support Activities

    Representatives of the statistical agencies of Canada, Mexico, and 
the

[[Page 26585]]

United States agree to a draft industrial classification for these 
industries.
    The draft classification applies to the subsector, Printing and 
Related Support Activities. The subsector is subdivided into a single 
industry group and two industries. The subsector will be part of the 
Manufacturing sector of the classification.

A General Outline

    Printing and Related Support Activities industries print products 
such as newspapers, books, periodicals, business forms, greeting cards, 
and other material. Support activities, such as bookbinding, plate 
making, and data imaging are also included in this subsector. These 
activities are an integral part of the printing industry, and a product 
(a printing plate, a bound book, or a computer disk or file) that is an 
integral part of the printing industry is almost always provided by 
these operations.
    Processes used in printing include a variety of methods used to 
transfer an image from a plate, screen, or computer file to some 
medium, such as paper, plastic, metal, textile articles or wood. The 
most prominent of these methods is to transfer the image from a plate 
or screen to the medium (lithographic, gravure, screen and flexographic 
printing). A rapidly growing new technology uses a computer file to 
``drive'' the printing mechanism directly to create the image (non-
impact printing). A number of important boundary issues involving 
printing and other sectors are noted in the Some Changes to National 
Classifications section.
    In contrast to many other classification systems that locate 
publishing of printed materials in manufacturing, NAICS locates the 
publishing of printed products in a separate subsector, Publishing, 
which is part of the new NAICS Information sector, to be published 
separately. Though printing and publishing are often carried out by the 
same enterprise (a newspaper, for example), it is less and less the 
case that these distinct activities are carried out in the same 
establishment. More information on this change is contained in the text 
to the proposed NAICS Information sector.

Limitations and Constraints of the Classification

    Most of the printing activities that take place in one country 
exist in the others. It is not possible in all countries to identify 
separately production process industries or specialized end use 
production categories. For example, in Canada and the United States, 
unique production establishments exist for the printing of books and 
business forms, and these processes can be recognized in the U.S. 
classification. In Mexico, however, book or business forms printers 
also print other types of products. Similarly, printing in Canada and 
the United States occurs largely in establishments that use a single 
printing process, such as lithographic or screen printing; in Mexico, 
diverse types of printing equipment are used in the same establishment.
    For these reasons, only broad categories for printing (of all 
types) and support activities for printing were created for NAICS. Each 
country will publish additional categories that comprise subdivisions 
of NAICS industries, to present data for activities that are nationally 
significant.
    For those users requiring detailed commodity information, each 
country will publish information on the products of these industries. 
Efforts are also underway to harmonize the commodity classifications to 
allow for greater comparability of these statistics.

Relationship to ISIC

    Both 4-digit industries in this subsector are contained within 
Division 22, Publishing Printing, and Reproduction of Recorded Media, 
of the current Standard Industrial Classification of all Economic 
Activities (ISIC, Revision 3) of the United Nations. However, two 
activities that are included in the NAICS Printing and Related Support 
Activities subsector are classified elsewhere in ISIC. Printing on 
textile articles is included in ISIC 1729, Manufacture of Other 
Textiles, NEC. Lithographic and gravure commercial printing of labels 
and tags is included in ISIC 2109, Manufacture of Other Articles of 
Paper and Paperboard.

Some Changes to the National Classifications

    For all three countries, publishing, including integrated 
publishing and printing establishments, has been moved out of the 
Printing and Related Support Activities subsector into the new NAICS 
Information sector.
    For Canada, a major change to the Printing and Related Support 
Activities subsector is to move printing on purchased fabric articles 
(mostly ``T'' shirts) from the Clothing Industries major group to this 
subsector. The production process involved here is printing, and not 
the manufacture of clothing. Another change is the redefinition of 
certain types of printing, sometimes referred to as ``quick printing.'' 
This printing is done in relatively small, often ``store front'' 
establishments; these establishments use small printers, and usually 
bundle printing with other services, such as mailing, fax and similar 
types of activities. Because printing is only one of a number of 
services performed in the same establishment, ``quick printers'' have 
been located in the NAICS Management, Employment, Administrative and 
Support Services subsector. This redefinition must be carefully 
constructed to ensure that commercial printing is not misclassified in 
the Management, Employment, Administrative and Support Services 
subsector.
    For Mexico, changes to this subsector are minor.
    For the United States, changes parallel those made for Canada. 
Printing on purchased fabric articles and the redefinition of quick 
printing were made for the United States, as they were in Canada. 
Printing on signs and advertising specialties was also moved here from 
its current U.S. classification in Miscellaneous Manufacturing in order 
to attain comparability with Canada and Mexico, and because the 
production process is primarily printing. A similar change, made for 
the identical reasons, involves printing on tags and labels.

Achievement of Objectives

    The classification meets the objectives for the North American 
Industry Classification System (NAICS). It includes industries that 
group establishments with similar production processes, that is, it 
applies the production-oriented economic concept. In the main, the 
hierarchical structure of the classification also follows the 
production concept.
    Other objectives of the NAICS project are not as relevant in this 
area of the classification as in others. These objectives are the 
delineation of new and emerging industries, service industries and 
industries engaged in the production of advanced technologies. The 
industrial sector in question is relatively mature, generally produces 
goods and has employed relatively stable technology. An evolving new 
technology in the printing industry involves the creation of a computer 
file that directly drives printing equipment. Thus, no printing plate 
is needed. This technology, however, does not yet account for a 
significant share of production in any of the three countries, and 
therefore has not been separated in the classification.
    The industries have high specialization ratios, and they are 
economically significant. While disruptions to time series exist, they

[[Page 26586]]

have been minimized. The statistical agencies can develop statistical 
``links,''' to enable the re-tabulation of time series on the new NAICS 
classification structure.
    The classification achieves comparability for the three 
participating countries. Based on existing data, all three countries 
expect to be able to publish data regularly at the industry (4-digit) 
level of the structure. All countries agree on the detailed definitions 
of the industries.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the NAICS industry subsector 
presented in Part V, Section A--Attachment 1, contain less detail than 
is currently in the U.S. SIC system, and less detail than is required 
to meet important analytical requirements in the U.S. The three country 
agreement on NAICS envisions that each country may develop national 
detailed industries below the NAICS industry level, so long as the 
national detail can be aggregated to the NAICS classification, thus 
assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
industry subsector covered in Part V of this notice. For cases where no 
5-digit detail is shown, the ECPC is proposing that the NAICS 4-digit 
industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Printing and Related Support                                                               
                      Activities:                                                                               
XXX................    Printing and Related                                                                     
                        Support Activities:                                                                     
XXXX...............     Printing:                                                                               
XXXXX..............      Book Printing............  E                    2732  Book Printing.                   
XXXXX..............      Commercial Lithographic    R                   *2752  Commercial Printing, Lithographic
                          Printing.                                             (Except Quick Printing).        
                                                    ................    *2771  Greeting Cards (lithographic     
                                                                                printing of greeting cards).    
                                                    ................    *2782  Blankbooks, Loose-leaf Binders   
                                                                                and Devices (lithographic       
                                                                                printing of checkbooks).        
                                                    ................    *3993  Signs and Advertising Specialties
                                                                                (lithographic printing of       
                                                                                advertising specialties).       
                                                    ................    *3999  Manufacturing Industries, NEC    
                                                                                (lithographic printing of       
                                                                                eyeglass frames for the trade). 
XXXXX..............      Commercial Gravure         R                    2754  Commercial Printing, Gravure.    
                          Printing.                                                                             
                                                    ................    *2771  Greeting Cards (gravure printing 
                                                                                of greeting cards).             
                                                    ................    *2782  Blankbooks, Loose-leaf Binders   
                                                                                and Devices (gravure printing of
                                                                                checkbooks).                    
                                                    ................    *3993  Signs and Advertising Specialties
                                                                                (gravure printing of advertising
                                                                                specialties).                   
                                                    ................    *3999  Manufacturing Industries, NEC    
                                                                                (gravure printing of eyeglass   
                                                                                frames for the trade).          
XXXXX..............      Commercial Screen          N                   *2759  Commercial Printing, NEC (screen 
                          Printing.                                             printing).                      
                                                    ................    *2771  Greeting Cards (screen printing  
                                                                                of greeting cards).             
                                                    ................    *2782  Blankbooks, Loose-leaf Binders   
                                                                                and Devices (screen printing of 
                                                                                checkbooks).                    
                                                    ................    *3993  Signs and Advertising Specialties
                                                                                (screen printing of advertising 
                                                                                specialties).                   
                                                    ................    *3999  Manufacturing Industries, NEC    
                                                                                (screen printing of eyeglass    
                                                                                frames for the trade).          
XXXXX..............      Commercial Flexographic    N                   *2759  Commercial Printing, NEC         
                          Printing.                                             (flexographic printing).        
                                                    ................    *2771  Greeting Cards (flexographic     
                                                                                printing of greeting cards).    
                                                    ................    *2782  Blankbooks, Loose-leaf Binders   
                                                                                and Devices (flexographic       
                                                                                printing of checkbooks).        
                                                    ................    *3993  Signs and Advertising Specialties
                                                                                (flexographic printing of       
                                                                                advertising specialties).       
                                                    ................    *3999  Manufacturing Industries, NEC    
                                                                                (flexographic printing of       
                                                                                eyeglass frames for the trade). 
XXXXX..............      Other Commercial Printing  R                   *2759  Commercial Printing, NEC (other  
                                                                                commercial printing).           
                                                    ................    *2771  Greeting Cards (other printing of
                                                                                greeting cards).                
                                                    ................    *2782  Blankbooks, Loose-leaf Binders   
                                                                                and Devices (other printing of  
                                                                                checkbooks).                    
                                                    ................    *3993  Signs and Advertising Specialties
                                                                                (other printing of advertising  
                                                                                specialties for the trade).     
                                                    ................    *3999  Manufacturing Industries, NEC    
                                                                                (other printing of eyeglass     
                                                                                frames for the trade).          
XXXXX..............       Manifold Business Form    E                    2761  Manifold Business Forms.         
                          Printing.                                                                             
XXXXX..............       Bankbook, Loose-leaf      R                   *2782  Blankbooks, Loose-leaf Binders   
                          Binder and Device.                                    and Devices (except checkbooks).
                         Manufacturing:                                                                         
XXXXX..............       Printing on Apparel.....  N                   *2396  Automotive Trimmings, Apparel    
                                                                                Findings, and Related Products  
                                                                                (Printing and Embossing on      
                                                                                Fabric Articles).               
XXXX...............     Support Activities for                                                                  
                         Printing:                                                                              
XXXXX..............       Tradebinding and Related  E                    2789  Bookbinding and Related Work.    
                          Work.                                                                                 
XXXXX..............       Prepress Services.......  R                    2791  Typesetting.                     

[[Page 26587]]

                                                                                                                
                                                    ................     2796  Platemaking and Related Services.
                                                                                                                
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; L--null industry for the U.S.; N--new     
  industry; R--revised industry; and * means ``part of''. The abbreviation NEC is used for Not Elsewhere        
  Classified.                                                                                                   



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
2711....................................  Newspapers: Publishing, or        Included in new Information sector. 
                                           Publishing and Printing.                                             
2721....................................  Periodicals: Publishing, or       Included in new Information sector. 
                                           Publishing and Printing.                                             
2731....................................  Books: Publishing, or Publishing  Included in new Information sector. 
                                           and Printing.                                                        
2732....................................  Book Printing...................  Book Printing.                      
2741....................................  Miscellaneous Publishing........  Included in new Information sector. 
2752....................................  Commercial Printing,              Commercial Lithographic Printing    
                                           Lithographic.                     (pt.).                             
                                          Commercial Printing,                                                  
                                           Lithographic (Except Quick                                           
                                           Printing):                                                           
                                            Quick Printing................  Included in Other Services sector.  
2754....................................  Commercial Printing, Gravure....  Commercial Gravure Printing (pt).   
2759@...................................  Commercial Printing, NEC:                                             
                                            Flexographic Printing.........  Commercial Screen Printing (pt).    
                                            Other Commercial Printing                                           
                                             (pt)..                                                             
2761....................................  Manifold Business Forms.........  Manifold Business Form Printing     
                                                                             (pt).                              
2771@...................................  Greeting Cards:                                                       
                                            Lithographic Printing of        Commercial Lithographic Printing    
                                             Greeting Cards.                 (pt).                              
                                            Gravure Printing of Greeting    Commercial Gravure Printing (pt).   
                                             Cards.                                                             
                                            Flexographic Printing of        Commercial Flexographic Printing    
                                             Greeting Cards.                 (pt).                              
                                            Screen Printing of Greeting     Commercial Screen Printing (pt).    
                                             Cards.                                                             
                                            Other Printing of Greeting      Other Commercial Printing (pt).     
                                             Cards.                                                             
                                            Publishing Greeting Cards.....  Included in new Information Sector. 
2782@...................................  Blankbooks, Loose-leaf Binders                                        
                                           and Devices:                                                         
                                            Lithographic Printing of        Commercial Lithographic Printing    
                                             Checkbooks.                     (pt).                              
                                            Gravure Printing of Checkbooks  Commercial Gravure Printing (pt).   
                                            Flexographic Printing of        Commercial Flexographic Printing    
                                             Checkbooks.                     (pt).                              
                                            Screen Printing of Checkbooks.  Commercial Screen Printing (pt).    
                                            Other Printing of Checkbooks..  Other Commercial Printing (pt).     
                                            Blankbooks, Loose-leaf Binders  Blankbook, Loose-leaf Binder and    
                                             and Devices.                    Device Manufacturing.              
2789....................................  Bookbinding and Related Work....  Tradebinding and Related Work.      
2791@...................................  Typesetting.....................  Prepress Services (pt).             
2796@...................................  Platemaking and Related Services  Prepress Services (pt).             
3993@...................................  Signs and Advertising                                                 
                                           Specialties:                                                         
                                            Lithographic Printing of        Commercial Lithographic Printing    
                                             Advertising Specialties.        (pt).                              
                                            Gravure Printing of             Commercial Gravure Printing (pt).   
                                             Advertising Specialties.                                           
                                            Flexographic Printing of        Commercial Flexographic Printing    
                                             Advertising Specialties.        (pt).                              
                                            Screen Printing of Advertising  Commercial Screen Printing (pt).    
                                             Specialties.                                                       
                                            Other Printing of Advertising   Other Commercial Printing (pt).     
                                             Specialties.                                                       
                                            Electric Signs................  Electric Signs (Included in         
                                                                             Electrical Equipment, Appliance,   
                                                                             and Component Manufacturing        
                                                                             subsector).                        
                                            Non-Electric Wood Signs.......  Other Wood Product Manufacturing    
                                                                             (pt) (Included in Wood Product     
                                                                             Manufacturing, Except Furniture    
                                                                             subsector).                        
                                            Non-Electric Metal Signs......  All Other Fabricated Metal Product  
                                                                             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
                                            Non-Electric Plastics Signs...  All Other Plastic Product           
                                                                             Manufacturing (pt) (Included in    
                                                                             Rubber and Plastic Product         
                                                                             Manufacturing subsector).          
3999@...................................  Manufacturing Industries, NEC:                                        
                                            Lithographic Printing of        Commercial Lithographic Printing    
                                             Eyeglass Frames for the Trade.  (pt).                              
                                            Gravure Printing of Eyeglass    Commercial Gravure Printing (pt).   
                                             Frames for the Trade.                                              
                                            Flexographic Printing of        Commercial Flexographic Printing    
                                             Eyeglass Frames for the Trade.  (pt).                              
                                            Screen Printing of Eyeglass     Commercial Screen Printing (pt).    
                                             Frames for the Trade.                                              
                                            Other Printing of Eyeglass      Other Commercial Printing (pt).     
                                             Frames for the Trade.                                              
                                            Other.........................  Other Miscellaneous Manufacturing   
                                                                             (pt) (To Be Included in            
                                                                             Miscellaneous Manufacturing        
                                                                             subsector).                        
2396@...................................  Automotive Trimmings, Apparel                                         
                                           Findings, and Related Products:                                      

[[Page 26588]]

                                                                                                                
                                            Printing and Embossing on       Printing on Apparel.                
                                             Fabric Articles.                                                   
                                            Automotive Trimmings..........  Motor Vehicle Fabric Accessory and  
                                                                             Seat Manufacturing (pt) (Included  
                                                                             in Transportation Equipment        
                                                                             Manufacturing subsector).          
                                            Apparel Findings and Trimmings  Apparel Belts, Apparel Accessories, 
                                                                             and Other Apparel Manufacturing    
                                                                             (pt) (Included in Apparel          
                                                                             Manufacturing subsector).          
                                            Other Apparel Trimmings.......  All Other Miscellaneous Textile     
                                                                             Product Mills (pt) (Included in    
                                                                             Textile Product Mills subsector).  
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of''. @ means time series break has been created that is greater than 3% of
  the 1992 revenues for the 1987 SIC industry.                                                                  



Description of Changes to the U.S. System

    Three new industries were added to the 1997 industry structure for 
this industry subsector.
    Commercial Screen Printing was created from part of 1987 SIC 2759, 
Commercial Printing, NEC; part of 1987 SIC 2771, Greeting Cards; part 
of 1987 SIC 2782, Blankbooks, Loose-leaf Binders, and Devices; part of 
1987 SIC 3993, Signs and Advertising Specialties; and part of 1987 SIC 
3999, Manufacturing Industries, NEC. This change was made in response 
to a proposal from the industry and it corresponds to the production-
oriented industry concept accepted for NAICS.
    Commercial Flexographic Printing was created from part of 1987 SIC 
2759, Commercial Printing, NEC; part of 1987 SIC 2771, Greeting Cards; 
part of 1987 SIC 2782, Blankbooks, Loose-leaf Binders, and Devices; and 
part of 1987 SIC 3993, Manufacturing Industries, NEC, and part of 1987 
SIC 3999, Manufacturing Industries, NEC. This change corresponds to the 
production-oriented industry concept accepted for NAICS.
    Printing on Apparel was created from part of 1987 SIC 2396, 
Automotive Trimmings, Apparel Findings, and Related Products. This 
change was made for international comparability, and because the 
process involved is printing, not apparel manufacture.
    Four industries were removed from this industry group and 
transferred to the new NAICS Information sector. They are:
    1987 SIC 2711, Newspapers: Publishing, or Publishing and Printing.
    1987 SIC 2721, Periodicals: Publishing, or Publishing and Printing.
    1987 SIC 2731, Books: Publishing, or Publishing and Printing.
    1987 SIC 2741, Miscellaneous Publishing.
    These four industries were transferred to the newly created 
Information sector in response to the increased use of electronic and 
other means for information transformation, manipulation, and 
dissemination, and because the production processes that characterize 
publishing are neither printing nor manufacturing. Where printing of 
newspapers, periodicals and books take place in a separate 
establishment (increasingly the case), these printing activities remain 
in manufacturing. More information is contained in the text for the 
NAICS Information sector, published separately.
    Two activities were transferred into the 1997 NAICS Printing and 
Related Support Activities subsector.
    Advertising specialty manufacturing transferred from part of 1987 
SIC 3993, Signs and Advertising Displays, into Commercial Printing, 
depending on the printing process.
    Printing eyeglasses for the trade transferred from part of 1987 SIC 
3999, Manufacturing Industries, NEC, into Commercial Printing, 
depending on the printing process. Transferring these two activities 
into the Printing and Related Support Activities subsector was 
necessary to align the U.S. classification with those of Canada and 
Mexico, and because the activities are printing processes.
    One activity was transferred out of the 1977 NAICS subsector for 
Printing and Allied Industries.
    Quick printing, 1987 industry code 2752 was transferred to the 
Other Services subsectors. This change was made to better conform with 
production services.
    Also, several activities were transferred within the Printing and 
Related Support Activities subsector. The number of printing industries 
decreased from 14 in 1987 to 11 in 1997. For time series linkage, 5 of 
the 14 1987 industries are comparable within three percent of the 1997 
industries.

Part VI--Proposed New Industry Structure for Professional, Scientific 
and Technical Services

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 16

    This Document represents the proposed agreement on the structure of 
the North American Industry Classification System (NAICS) for the 
following industries: Professional, Scientific and Technical Services.
    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on September 27, 1995-September 29, 1995 in 
Mexico City, Mexico.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    9/29/95
Mexico..............................  /S/ Enrique Ordaz......    9/29/95
United States.......................  /S/ Jack E. Triplett...    9/29/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Professional, Scientific and Technical Services
XXX  Legal Services
XXXX   Offices of Lawyers
XXXX  Offices of Notaries
XXXX  Other Legal Services
XXX  Accounting, Tax Preparation, Bookkeeping and Payroll Services
XXXX  Offices of Accountants

[[Page 26589]]

XXXX  Tax Preparation, Bookkeeping and Payroll Services
XXX  Architectural, Engineering and Related Services
XXXX  Architectural Services
XXXX  Engineering Services
XXXX  Drafting Services
XXXX  Building Inspection Services
XXXX  Landscape Architecture Services
XXXX  Surveying and Mapping Services
XXXX  Geophysical Surveying Services
XXXX  Testing Laboratories
XXX  Specialized Design Services
XXXX  Interior Design Services
XXXX  Industrial Design Services
XXXX  Graphic Design Services
XXXX  Other Specialized Design Services
XXX  Computer Systems Design and Related Services
XXXX  Computer Systems Design and Related Services
XXX  Management, Scientific and Technical Consulting Services
XXXX  Management Consulting Services
XXXX  Environmental Consulting Services
XXXX  Other Scientific and Technical Consulting Services
XXX  Scientific Research and Development Services
XXXX  Research and Development in the Physical and Engineering 
Sciences
XXXX  Research and Development in the Life Sciences
XXXX  Research and Development in the Social Sciences and Humanities
XXX  Advertising and Related Services
XXXX  Advertising Agencies
XXXX  Public Relations Services
XXXX  Media Buying Agencies
XXXX  Media Representatives
XXXX  Display Advertising
XXXX  Direct Mail Advertising
XXXX  Advertising Material Distribution
XXXX  Other Services Related to Advertising
XXX  Other Professional, Scientific and Technical Services
XXXX  Market Research and Public Opinion Polling
XXXX  Photography Services
XXXX  Translation and Interpretation Services
XXXX  Veterinary Services
XXXX  All Other Professional, Scientific and Technical Services

Attachment 2--North American Industry Classification System

    Draft Classification for:

Professional, Scientific, and Technical Services

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industry classification for the 
Professional, Scientific, and Technical Service industries.
    The subsector is further subdivided into nine industry groups and 
37 industries. The placement of this subsector within the NAICS 
structure is not yet determined.

A General Outline

    The statistical agencies of Canada, Mexico, and the United States 
have agreed to place major emphasis on improved services 
classifications in NAICS. In their July 26, 1994 statement of concept 
for NAICS (FR, Vol. 59, No. 142, p. 38094), they stated: ``Statistical 
agencies of the three countries agree to give special attention to 
developing production-oriented classifications for (a) new and emerging 
industries, (b) service industries in general * * *.''
    Past industry classifications have two analytical inadequacies. 
First, individual services industries are too few in number, which is 
another way of saying that they have been defined too broadly to be 
useful--they have combined too many disparate activities into a single 
industry definition. This criticism has been heard even in the U.S., 
which had more services industry detail in its 1987 Standard Industrial 
Classification Manual than was the case for most other classification 
systems. As indicated later in this outline, the detail problem has 
been addressed in NAICS by breaking out new services industries from 
many of the broad and heterogeneous industries in the former systems of 
all three countries.
    A second problem in past services industry classifications is a 
general lack of a coherent structure. To take the 1987 U.S. SIC system 
as an example, though it had what in NAICS would be called a 
``subsector'' for ``Business Services,'' it was difficult to discern an 
organizational principle in this subsector, or the relation that the 
industries included in it had to each other or to the subsector as a 
whole. Moreover, engineering and architecture were not defined as 
business services at all, and were located in a different part of the 
classification. Again, this lack of coherent structure has been 
criticized.
    In NAICS, organizing principles have been sought that will give 
coherence to NAICS services sectors and subsectors. The organizing 
principle of the Professional, Scientific, and Technical Services 
subsector is human capital, the knowledge and skills of the employees 
in the subsector.
    A services firm is often in the business of selling the skills of 
its workers. When this is the case, the production process of a 
services producer depends essentially on the abilities and capabilities 
of its employees. Of course, human capital is important in other areas 
of services as well--medicine, for example. A broad interpretation of 
the principles of human capital could have led to the inclusion of 
other industries in this subsector. For example, investment advisors 
and real estate appraisers also make available the particular knowledge 
and skills of their human capital.
    The distinguishing feature of the Professional, Scientific, and 
Technical Services subsector is the fact that most of the industries 
grouped in it have production processes that are almost wholly 
dependent on worker skills. In most of these industries, equipment and 
materials are not of major importance, unlike health care, for example, 
where ``high tech'' machines and materials are important collaborating 
inputs to labor skills in the production of health care. Thus, the 
establishments classified in this subsector are expertise sellers. Much 
of the expertise requires degrees, though not in every case. Moreover, 
differences in expertise and in training distinguish the industries 
that are classified in this subsector.
    Because of the importance of services industries, and their rapid 
growth in North America, the three countries' statistical agencies have 
created a forward looking classification for this subsector that is 
intended to provide a framework for measuring services as they expand 
throughout the entire North American economy. For this reason, many 
NAICS industries in this subsector have been created even when they 
cannot at present be supported by all three countries. This is a 
different rule than the one followed in most of the traditional goods 
producing sectors. The following paragraphs provide a brief description 
of the content of each industry group and observations on issues that 
are of particular interest.
    The Legal Services industry group includes Offices of Lawyers, 
Offices of Notaries and Other Legal Services. Offices of Lawyers are by 
far the largest industry in this group. Though many law firms 
specialize in particular forms of law practice, no acceptable way was 
found to further disaggregate this industry into more detailed 
industries that would be collectible in all three countries, and would 
apply to the operations of the industry in all three countries. In 
Canada and Mexico, Offices of Notaries are empowered to draft, approve, 
and execute legal documents and contracts. Such establishments do not 
exist in the United States. The Other Legal Services industry actually 
groups legal activities that are noncomparable in the three countries. 
In Canada, this industry includes offices of bailiffs that are involved 
in a mixture of activities, including enforcing court orders, serving 
writs and summonses, repossession of property and providing court house 
security. Bailiffs in Mexico

[[Page 26590]]

and the United States are employees of the courts and normally provide 
security, and serve court documents. For this reason, offices of 
bailiffs do not exist as establishments in the U.S. and Mexico. The 
Other Legal Services industry includes offices of paralegals in the 
United States. Though most paralegals in the U.S. are employees of 
other legal firms, separate establishments of paralegals are emerging, 
and are placed in the Other Legal Services industry. The Other Legal 
Services industry does not exist in Mexico, because neither bailiffs 
nor paralegals exist as independent establishments.
    The Accounting, Tax Preparation, Bookkeeping and Payroll Services 
industry group includes establishments providing auditing, accounting, 
tax preparation, bookkeeping and billing, and payroll accounting 
services. The dominant expertise in this industry group is expertise in 
accounting. However, other activities that are sometimes done in 
accounting firms and sometimes in more specialized establishments (tax 
preparation, for example) are also located here. The United States will 
subdivide the Offices of Accountants industry to distinguish auditing 
accountants (Certified Public Accountants (CPAs)) from non-auditing 
accountants (non-CPAs).
    The Architectural, Engineering and Related Services industry group 
includes establishments providing architectural, engineering, drafting, 
building inspection and surveying services. All of the proposed 
industries within this industry group are specialized and economically 
significant in Canada and the United States. However, three industries 
(Drafting Services, Surveying and Mapping Services and Geophysical 
Surveying Services) do not exist in Mexico. The Testing Laboratories 
industry includes establishments engaged in the provision of laboratory 
sampling and technical testing services, such as chemical analysis and 
nondestructive testing. It is located in this subsector because the 
industries in this industry group are major users of testing laboratory 
services and because of the processes used in the laboratories.
    The Specialized Design Services industry group includes 
establishments providing interior, industrial, graphic and other 
specialized design services. It should be noted that the Architectural 
and Engineering Services industries also include establishments that 
are engaged in providing design services.
    The Computer Systems Design and Related Services industry group 
includes establishments providing expertise in the field of information 
technologies. These establishments provide services such as custom 
programming services, systems design services, data center management 
services and technical consulting services. Though custom computer 
programming is in this sector, the reproduction of packaged software is 
in the NAICS Manufacturing sector, and software publishing and on-line 
retrieval services are in the new NAICS Information sector, to be 
published separately.
    The Management, Scientific and Technical Consulting Services 
industry group includes establishments that advise and counsel clients 
on virtually all aspects of corporate operations, as well as those 
offering technical advice and counsel on non-management issues. Many 
kinds of consulting exist in a modern economy. This industry group 
brings together those consultants who, while having specific expertise, 
offer a wide range of services to their prospective clients. It is not 
the clients' business on which the consultants in this industry group 
have expertise, but rather, they have specialized knowledge with 
potential applications in a broad range of industries. Accordingly, 
those establishments that provide consulting services that are closely 
tied to a specific industry are classified in the sector or group of 
industries to which they are related. For example, agricultural 
consultants are included in the Agriculture sector. In addition, 
establishments that provide consulting services in conjunction with 
other services as part of an integrated process, or in conjunction with 
other sales, are excluded. For example, the provision of advice and 
counsel on financial matters is often related to or incidental to the 
sale of financial products, and is therefore included in the Finance 
and Insurance sector.
    The Scientific Research and Development Services industry group 
includes establishments engaged in original investigation undertaken on 
a systematic basis to gain new knowledge (research) and/or in the 
application of research findings or other scientific knowledge for the 
creation of new or significantly improved products or processes 
(experimental development). The industries within this industry group 
are defined on the basis of the domain of research; that is, on the 
scientific expertise of the establishment.
    The Advertising and Related Services industry group includes 
Advertising Agencies, Public Relations Services, Media Buying Agencies, 
Media Representatives, Display Advertising, Direct Mail Advertising, 
Advertising Material Distribution and Other Services Related to 
Advertising. These establishments are primarily engaged in preparing 
advertising campaigns, placing advertisements, or the delivery of 
advertising material to the general public.
    The Other Professional, Scientific, and Technical Services industry 
group represents a residual grouping that includes Market Research and 
Public Opinion Polling, Photography Services, Translation and 
Interpretation Services, Veterinary Services and other activities that 
could not be placed within other industry groups.

Limitations and Constraints of the Classification

    Differences in the organization of activities within 
establishments, and differences in the economic significance of 
individual industries from country to country, were the major issues 
faced in the development of a common classification structure for this 
subsector. These issues were dealt with by grouping activities in a 
manner that recognized the different levels of integration and 
diversification of establishments while allowing each country to add 
industries where necessary to reflect the greater level of 
specialization or economic significance of particular industries in its 
national economy. Still, in some instances, proposed NAICS industries 
in this subsector do not exist in all countries.
    Establishments that offer services to a broad spectrum of 
industries, and therefore do not require particular expertise in the 
client's own industry, are classified in this sector. However, the 
narrower interpretation imposes limits on studies of a more broadly 
defined ``professional or knowledge-based sector.'' Uses requiring such 
a broad definition will require regrouping of NAICS industries in other 
sectors.
    The identification of new and emerging industries is one of the 
principal goals of the NAICS project. Many users have expressed the 
wish that this goal be achieved while minimizing breaks in time series. 
However, these two objectives are more often than not conflicting, and 
the degree to which proposed NAICS industries relate to existing 
national classification systems varies from country to country.

Relationship to ISIC

    Each of the NAICS industries created in this subsector can be 
assigned to a division of the current International Standard Industrial 
Classification of all Economic Activities (ISIC, Revision 3) of the 
United Nations. The majority of

[[Page 26591]]

the NAICS industries are contained within ISIC Division 74, Other 
Business Activities. Other NAICS industries in this sector relate to 
ISIC Divisions 72, Computer and Related Activities and ISIC Division 
73, Research and Development.

Changes to the National Classification

    For Canada, the identification of a significant number of new 
industries represents the most important change to the 1980 Canadian 
Standard Industrial Classification (CSIC). Twenty-seven of the 37 
proposed NAICS industries applicable in Canada are new. The industries 
of this sector are, for the most part, currently classified in CSIC 77, 
Business Service Industries. The expansion is particularly important 
for legal services (CSIC 7761), computer services (CSIC 7721), 
advertising services (CSIC 774), scientific and technical services 
(CSIC 7759) and other business services (CSIC 7799).
    The Legal Services industry group now contains three industries 
compared to one in the existing Canadian system. The Offices of 
Notaries and Other Legal Services industries are new.
    The current Computer Services industry (CSIC 7721) is split into 
five industries. The computer systems design and related services 
component is part of this subsector. The newly created Information 
sector contains three industries, namely, Software Publishing, On-line 
Retrieval Services and Data Transaction Processing Services, that were 
formerly contained in CSIC 7721, but are not placed in the NAICS 
Professional, Scientific and Technical Services subsector. Computer 
rental and leasing is now classified in the Rental and Leasing 
subsector of NAICS.
    The Advertising Services industry group (CSIC 774) expands to eight 
industries from the current four. The new industries are Public 
Relations Services, Media Buying Agencies, Direct Mail Advertising, and 
Advertising Material Distribution.
    Nine of the proposed NAICS industries are components of the Other 
Scientific and Technical Services Industry (CSIC 7759). This includes 
Drafting Services, Landscape Architecture Services, Surveying and 
Mapping Services, Geophysical Surveying Services, Environmental 
Consulting Services, Testing Laboratories and the three proposed 
Scientific Research and Development Services industries.
    The proposed industries for Interior Design Services, Translation 
and Interpretation Services, Document Preparation Services, Telephone 
Call Centers and Packaging and Labeling Services are components of CSIC 
7799, Other Business Services n.e.c. Various parts of this industry are 
reassigned to new NAICS industries.
    Other significant changes include the creation of two industries 
from CSIC 7771, Management Consulting Services (Management Consulting 
and Management Services) and the splitting of a Graphic Design Services 
industry from CSIC 7749, Other Advertising Services.
    The majority of proposed NAICS industries (22) relate to only one 
existing CSIC industry. In those cases, the task of linking statistics 
based on the old and new systems is relatively easy. For the remaining 
classes, this task is much more difficult since they are defined in 
terms of components of existing industries for which no data are 
available. However, many of these partial relationships are marginal in 
terms of economic activity.
    For Mexico, 24 CMAP industries are included in this subsector: four 
industries have one-to-one correspondence with NAICS; four CMAP 
industries were combined to form one NAICS industry class; two other 
industries were merged with parts of other industry classes to form two 
new NAICS industries; and of the remaining fourteen CMAP industry 
classes, 27 industries were created for this subsector in the NAICS. 
Some of the new or revised industries reflect an increasing degree of 
specialization in this subsector in Mexico. Services that were offered 
in combination within the same establishment, even when one of these 
services was a secondary activity, are now provided separately by 
establishments that specialize in only one activity. Therefore, in this 
new classification system there are industries that were not even 
mentioned in CMAP, because they were formerly either secondary 
activities or included with other activities.
    The activities that are incorporated into this subsector are 
currently classified in branch 9510 of the CMAP, Provision of 
Professional Services, Technical and Specialized. However, to fill out 
the new subsector some activities were relocated that were found in 
other CMAP branches or subsectors or even from other activity sectors.
    From CMAP Subsector 92, Services of Education, Investigation, 
Medicine, Welfare and Civil and Religious Associations, the scientific 
investigation services performed by the private sector and the public 
sector (CMAP classes 922100 and 922200, respectively) were reclassified 
into three classes: Research and Development in the Physical and 
Engineering Services; Research and Development in the Life Sciences; 
and Research and Development in the Social Sciences and Humanities.
    CMAP Subsector 94, Cultural, Recreational, and Sports Services, 
included establishments that are devoted to personnel contracting for 
theatrical and cinematographic works (CMAP classes: 941101, Private 
Production of Cinematographic Movies; 941106, Private Promotion 
Services, Assembly and Artistic Spectacles Presentation; and in 941204, 
Promotion and Assembly Public Service and Artistic Spectacles 
Presentation). These contracting agencies are joined to the agencies of 
personnel placement to form a single NAICS class.
    CMAP Class 952002, Various Personal Services, Photographic Services 
is reclassified to NAICS Photography Services.
    Two classes of CMAP Branch 9510 are not included in this subsector: 
CMAP class 951014, News Agency Services, and CMAP 951016, Photograph 
and Movies Developing Services. The first is reclassified to the sector 
for Information and the second is included in the Arts, Entertainment 
and Recreation subsector.
    For the rest of the classes of CMAP Branch 9510, the most important 
changes are the separations of the CMAP classes 951005, Services of 
Advising and Technical Studies of Engineering and Architecture; 951008, 
Services of Advertising and Related Activities; 951010, Advising 
Services in Administration and Organization of Businesses, and 951023, 
Other Professional Services, Technical and Specialized, not mentioned 
previously. The creation of new product classes resulting from the 
separation is based on two fundamental criteria: on the one hand, the 
specificity concerning production function and, additionally, the 
perspective of growth in the future.
    The CMAP class 951005, Services of Engineering and Architecture 
Consulting and Mechanical Studies, is split into six parts; the first 
five are identified by their very specific production functions: 
Architectural Services, Engineering Services, Surveying and Mapping 
Services, Geophysical Surveying Services and Testing Laboratories. The 
sixth part (prototypes design) is combined with the services of urban 
planners and with the services of mode designers (located within the 
current CMAP class 951023), to become NAICS industry Other Specialized 
Design Services.
    The current class Advertising and Related Activities (CMAP 951008) 
is split into eight NAICS industries:

[[Page 26592]]

Advertising Agencies, Media Purchasing Agencies, Media Representation 
Agencies, Advertising Agencies, Direct Mail Agencies, Direct Mail 
Advertising Agencies, Commercial Event and Convention Organizers, and 
Other Services Related to Advertising.
    The current CMAP class 951010, Administration and Organization 
Advising Services, is split into five NAICS industries: Administrative 
Consultants, Public Relations Services, Translation and Interpretation 
Services, Organizing Services, and Other Scientific and Technical 
Consultancy Services.
    Finally, certain activities in current CMAP class 951023, Other 
Professional Services, Technical and Specialized Not Mentioned 
Previously, are now NAICS industries.
    For the United States, of the 37 proposed NAICS industries, 23 are 
new. Of the 23 new industries in this subsector, eight were created 
from 1987 SIC 7389, Business Services, Not Elsewhere Classified. This 
former NEC industry had become a ``catch-all'' category that included 
some of the fastest growing services in the U.S. economy, in a grouping 
that had no natural interpretation or usefulness. Its size is 
significantly reduced by the creation of the new industries in this 
subsector. Examples of new industries that were created from 1987 SIC 
7389 are: Other Legal Services, Drafting Services, Building Inspection 
Services, Interior Design Services, Industrial Design Services, and 
Translation and Interpretation Services. In addition, other activities 
formerly included in SIC 7389 were redistributed among the industries 
to create homogeneous industries or industry groupings. The 
redistributions out of 1987 SIC 7389 will reduce its overall size by 
approximately 40% of the establishments and receipts. In addition, the 
remainder are redistributed into NAICS industry groups that have more 
logic and coherence than the 1987 SIC 73 major group.
    The NAICS industry group Accounting, Tax Preparation, Bookkeeping 
and Payroll Services includes the services of accountants, tax 
preparers, bookkeepers, and payroll services. The inclusion of tax 
preparation services represents a significant change; these services 
are currently included in 1987 SIC Major Group 72, Personal Services. 
Accounting services were previously grouped with bookkeeping; the NAICS 
structure separates these two activities.
    The NAICS industry group Architectural, Engineering and Related 
Services groups three previously existing services industries (1987 
SICs 8711, 8712, 8713), one previously existing industry from 
Agriculture (1987 SIC 0781) and includes two new industries.
    The NAICS industry group Other Specialized Design Services includes 
new industries for Interior Design Services, Industrial Design Services 
and Graphic Design Services.
    The NAICS industry group Management, Scientific and Technical 
Consulting includes one significant change. It includes a separate 
industry for Environmental Consulting Services. This service is 
included in 1987 SIC 8999, Services Not Elsewhere Classified.
    The NAICS industry group for Scientific Research and Development 
Services changes the focus from the source of funding (commercial 
versus non commercial) to the domain of research, that is, physical 
sciences, life sciences, and social sciences.
    The NAICS industry group Other Professional, Scientific and 
Technical Services includes Photography Services that are in 1987 SIC's 
7221, Photographic Studios, Professional, and 7335, Commercial 
Photography. The U.S. will continue to separate these industries in its 
5-digit industry detail.

Achievement of Objectives

    The proposed classification meets the objectives for the North 
American Industry Classification System. It is comprised of industries 
that group establishments with similar production processes, that is, 
it applies the production-oriented economic concept. The hierarchical 
structure of the classification also follows the production concept.
    The classification achieves comparability for the three 
participating countries. Based on existing data, all three countries 
expect to be able to publish data regularly at most industry levels of 
the NAICS structure, though a number of exceptions exist, as noted in 
the ``Limitations and Constraints of Classification'' above. The 
proposed NAICS structure also introduces a number of new and emerging 
industries by expanding the current classification systems of each 
country for business and professional service industries. All countries 
agree on the detailed definitions of the industries.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the NAICS industry subsector 
presented in Part VI, Section A--Attachment 1, contain less detail than 
is currently in the U.S. SIC system, and less detail than is required 
to meet important analytical requirements in the U.S. The three country 
agreement on NAICS envisions that each country may develop national 
detailed industries below the NAICS industry level, so long as the 
national detail can be aggregated to the NAICS classification, thus 
assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
industry subsector covered in Part VI of this notice. For cases where 
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC          1987 SIC descriptions      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Professional, Scientific and                                                               
                      Technical Services:                                                                       
XXX................    Legal Services:                                                                          
XXXX...............     Offices of Lawyers........  E                    8111  Legal Services.                  
XXXX...............     Offices of Notaries.......  L                 .......  Null Set for U.S.                
XXXX...............     Other Legal Services......  N                   *7389  Business Services, NEC (process  
                                                                                services, patent agents,        
                                                                                notaries public, paralegal      
                                                                                services).                      
XXX................    Accounting, Tax                                                                          
                        Preparation, Bookkeeping                                                                
                        and Payroll Services:                                                                   
XXXX...............     Offices of Accountants:                                                                 

[[Page 26593]]

                                                                                                                
XXXXX..............      Offices of Certified       N                   *8721  Accounting, Auditing, and        
                          Public Accountants.                                   Bookkeeping Services (certified 
                                                                                public accountants).            
XXXXX..............      Offices of Accountants,    N                   *8721  Accounting, Auditing, and        
                          Except Certified.                                     Bookkeeping Services            
                                                                                (accountants, except certified  
                                                                                public accountants).            
XXXX...............     Tax Preparation,                                                                        
                         Bookkeeping and Payroll                                                                
                         Services:                                                                              
XXXXX..............      Tax Preparation Services.  E                    7291  Tax Return Preparation Services. 
XXXXX..............      Bookkeeping and Billing    N                   *8721  Accounting, Auditing, and        
                          Services.                                             Bookkeeping Services            
                                                                                (bookkeeping and billing).      
XXXXX..............      Payroll Services.........  N                   *7819  Services Allied to Motion Picture
                                                                                Production (talent payment      
                                                                                services).                      
                                                                         8721  Accounting, Auditing, and        
                                                                                Bookkeeping Services (payroll   
                                                                                services).                      
XXX................     Architectural, Engineering                                                              
                         and Related Services:                                                                  
XXXX...............     Architectural Services....  E                    8712  Architectural Services.          
XXXX...............     Engineering Services......  E                    8711  Engineering Services.            
XXXX...............     Drafting Services.........  N                   *7389  Business Services, NEC (drafting 
                                                                                service).                       
XXXX...............     Building Inspection         N                   *7389  Business Services, NEC (home and 
                         Services.                                              building inspection services).  
XXXX...............     Landscape Architecture      E                    0781  Landscape Counseling and         
                         Services.                                              Planning.                       
XXXX...............     Surveying and Mapping       N                   *7389  Business Services, NEC (map      
                         Services.                                              making services).               
                                                                        *8713  Surveying Services (except       
                                                                                geophysical surveying).         
XXXX...............     Geophysical Surveying       N                   *8713  Surveying Services (geophysical  
                         Services.                                              surveying).                     
XXXX...............     Testing Laboratories......  R                   *8734  Testing Laboratories (except     
                                                                                veterinary testing              
                                                                                laboratories).                  
XXX................    Specialized Design           ................           .................................
                        Services:.                                                                              
XXXX...............     Interior Design Services..  N                   *7389  Business Services, NEC (interior 
                                                                                design).                        
XXXX...............     Industrial Design Services  N                   *7389  Business Services, NEC           
                                                                                (industrial design).            
XXXX...............     Graphic Design Services...  R                    7336  Commercial Art and Graphic       
                                                                                Design.                         
                                                                        *8099  Health and Allied Services, NEC  
                                                                                (medical artists).              
XXXX...............     Other Specialized Design                                                                
                         Services:                                                                              
XXXXX..............      Land Use Planners          N                   *8748  Business Consulting Services, NEC
                          Services.                                             (planners of land use).         
XXXXX..............      All Other Design Services  N                   *7389  Business Services, NEC (fashion, 
                                                                                furniture, and other design     
                                                                                services).                      
XXX................    Computer Systems Design and                                                              
                        Related Services:                                                                       
XXXX...............     Computer Systems Design                                                                 
                         and Related Services:                                                                  
XXXXX..............      Custom Computer            E                    7371  Computer Programming Services.   
                          Programming Services.                                                                 
XXXXX..............      Systems Design Services..  N                    7373  Computer Integrated Systems      
                                                                                Design.                         
                                                                        *7379  Computer Related Services, NEC   
                                                                                (computer systems consultants). 
XXXXX..............      Computer Facilities        E                    7376  Computer Facilities Management   
                          Management Services.                                  Services.                       
XXXXX..............      Other Computer Systems     R                   *7379  Computer Related Services, NEC   
                          Design and Related                                    (except computer systems        
                          Services.                                             consultants).                   
XXX................    Management, Scientific and                                                               
                        Technical Consulting                                                                    
                        Services:                                                                               
XXXX...............     Management Consulting                                                                   
                         Services:                                                                              
XXXXX..............      Administrative and         N                   *8742  Management Consulting Services   
                          General Management                                    (administrative management and  
                          Consulting.                                           general management consulting). 
XXXXX..............      Human Resources            N                   *8742  Management Consulting Services   
                          Consulting.                                           (human resources and personnel  
                                                                                management consulting).         
                                                                        *7361  Employment Agencies (executive   
                                                                                placement services).            
XXXXX..............      Marketing Consulting.....  N                   *8742  Management Consulting Services   
                                                                                (marketing consulting).         
XXXXX..............      Process, Physical,         N                   *8742  Management Consulting Services   
                          Distribution and                                      (manufacturing management,      
                          Logistics Consulting.                                 physical distribution, and site 
                                                                                location consulting).           
XXXXX..............      Other Management           N                   *4731  Arrangement of Transportation of 
                          Consulting Services.                                  Freight and Cargo (tariff       
                                                                                consulting).                    
                                                                        *8748  Business Consulting Services, NEC
                                                                                (safety consulting).            
XXXX...............     Environmental Consulting    N                   *8999  Services, NEC (environmental     
                         Services.                                              consultants).                   
XXXX...............     Other Scientific and        N                   *8748  Business Consulting Services, NEC
                         Technical Consulting                                   (economic, radio, and traffic   
                         Services.                                              consultants).                   
                                                                        *8999  Services, NEC (nuclear           
                                                                                consultants, geologists,        
                                                                                physicists and actuarial        
                                                                                consulting).                    
XXX................    Scientific Research and      ................           .................................
                        Development Services:.                                                                  
XXXX...............     Research and Development    N                   *8731  Commercial Physical and          
                         in the Physical and                                    Biological Research (physical   
                         Engineering Sciences.                                  and engineering sciences).      
                                                                        *8733  Noncommercial Research           
                                                                                Organizations (physical and     
                                                                                engineering services).          

[[Page 26594]]

                                                                                                                
XXXX...............     Research and Development    N                   *8731  Commercial Physical and          
                         in the Life Sciences.                                  Biological Research (life       
                                                                                sciences).                      
                                                                        *8733  Noncommercial Research           
                                                                                Organizations (life sciences).  
XXXX...............     Research and Development    N                   *8732  Commercial Economic,             
                         in the Social Sciences                                 Sociological, and Educational   
                         and Humanities.                                        Research (social sciences and   
                                                                                humanities).                    
                                                                        *8733  Noncommercial Research           
                                                                                Organizations (social sciences  
                                                                                and humanities).                
XXX................    Advertising and Related      ................           .................................
                        Services:.                                                                              
XXXX...............     Advertising Agencies......  E                    7311  Advertising Agencies.            
XXXX...............     Public Relations Services.  E                    8743  Public Relations Services.       
XXXX...............     Media Buying Agencies.....  N                   *7319  Advertising, NEC (media buying   
                                                                                services).                      
XXXX...............     Media Representatives.....  E                    7313  Radio, Television, and           
                                                                                Publishers' Advertising         
                                                                                Representatives.                
XXXX...............     Display Advertising.......  N                    7312  Outdoor Advertising Services.    
                                                                        *7319  Advertising, NEC (display        
                                                                                advertising, except outdoor).   
XXXX...............     Direct Mail Advertising...  E                    7331  Direct Mail Advertising Services.
XXXX...............     Advertising Material        N                   *7319  Advertising, NEC (advertising    
                         Distributors.                                          materials distributor).         
XXXX...............     Other Services Related to   N                   *7319  Advertising, NEC (except media   
                         Advertising.                                           buying, display advertising,    
                                                                                except outdoor; and advertising 
                                                                                material distributors).         
                                                                        *5199  Nondurable Goods, NEC            
                                                                                (advertising specialities goods 
                                                                                distributors).                  
XXX................    Other Professional,                                                                      
                        Scientific and Technical                                                                
                        Services:                                                                               
XXXX...............     Market Research and Public  N                   *8732  Commercial Economic,             
                         Opinion Polling.                                       Sociological, and Educational   
                                                                                Research (market research and   
                                                                                opinion research).              
XXXX...............     Photography Services:                                                                   
XXXXX..............      Photography Studios,       E                    7221  Photographic Studios, Portrait.  
                          Portrait.                                                                             
XXXXX..............      Commercial Photography...  R                    7335  Commercial Photography.          
                                                                        *8099  Health and Allied Services, NEC  
                                                                                (medical photography).          
XXXX...............     Translation and             N                   *7389  Business Services, NEC           
                         Interpretation Services.                               (translation and interpretation 
                                                                                services).                      
XXXX...............     Veterinary Services.......  E                    0741  Veterinary Services for          
                                                                                Livestock.                      
                                                                        *0742  Veterinary Services for Animal   
                                                                                Specialties                     
XXXX...............     All Other Professional,     N                    7389  Business Services, NEC           
                         Scientific and Technical                               (appraisers, except insurance   
                         Services..                                             and real estate, and            
                                                                                miscellaneous professional,     
                                                                                scientific, and technical       
                                                                                services).                      
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; L--null industry for the U.S.; N--new     
  industry; R--revised industry; and * means ``part of''. The abbreviation NEC is used for Not Elsewhere        
  Classified.                                                                                                   



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
0741....................................  Veterinary Services for           Veterinary Services (pt.).          
                                           Livestock.                                                           
0742....................................  Veterinary Services for Animal    Veterinary Services (pt.).          
                                           Specialties.                                                         
0781....................................  Landscape Counseling and          Landscape Architecture Services.    
                                           Planning.                                                            
4731....................................  Arrangement of Transportation of                                      
                                           Freight and Cargo:                                                   
                                            Tariff Consulting.............  Other Management Consulting Services
                                                                             (pt.).                             
5199....................................  Nondurable Goods, NEC:                                                
                                            Advertising Specialities Goods  Other Services Related to           
                                             Distributors.                   Advertising (pt.).                 
7221....................................  Photographic Studios, Portrait..  Photographic Studios, Portrait.     
7291....................................  Tax Return Preparation Services.  Tax Preparation Services.           
7311....................................  Advertising Agencies............  Advertising Agencies.               
7312....................................  Outdoor Advertising Services....  Display Advertising (pt.).          
7313....................................  Radio, Television, and            Media Representatives.              
                                           Publishers' Advertising                                              
                                           Representatives.                                                     
7319@...................................  Advertising, NEC:                                                     
                                            Media Buying Services.........  Media Buying Agencies.              
                                            Display Advertising, Except     Display Advertising (pt.).          
                                             Outdoor.                                                           
                                            Advertising Materials           Advertising Material Distributors.  
                                             Distributor.                                                       
                                            Other.........................  Other Services Related to           
                                                                             Advertising (pt.).                 
7331....................................  Direct Mail Advertising Services  Direct Mail Advertising.            
7335....................................  Commercial Photography..........  Commercial Photography (pt.).       
7336....................................  Commercial Art and Graphic        Graphic Design Services (pt.).      
                                           Design.                                                              
7361....................................  Employment Agencies:                                                  
                                            Executive Placement Services..  Human Resources Consulting (pt.).   
7371....................................  Computer Programming Services...  Custom Computer Programming         
                                                                             Services.                          
7373....................................  Computer Integrated Systems       Systems Design Services (pt.).      
                                           Design.                                                              
7376....................................  Computer Facilities Management    Computer Facilities Management      
                                           Services.                         Services.                          

[[Page 26595]]

                                                                                                                
7379....................................  Computer Related Services, NEC:                                       
                                            Computer Systems Consultants..  Systems Design Services (pt.).      
                                            Except Computer Systems         Other Computer Systems Design and   
                                             Consultants.                    Related Services.                  
7389@...................................  Business Services, Not Elsewhere                                      
                                           Classified:                                                          
                                            Process Services, Patent        Other Legal Services.               
                                             Agents, Notaries Public and                                        
                                             Paralegal Services.                                                
                                            Mapmaking Services............  Surveying and Mapping Services      
                                                                             (pt.).                             
                                            Interior Design...............  Interior Design Services.           
                                            Industrial Design.............  Industrial Design Services.         
                                            Drafting Service..............  Drafting Services.                  
                                            Fashion, Furniture and Other    All Other Design Services.          
                                             Design Services.                                                   
                                            Translation and Interpretation  Translation and Interpretation      
                                             Services.                       Services.                          
                                            Home and Building Inspection    Building Inspection Services.       
                                             Services.                                                          
                                            Appraisers, Except Insurance    All Other Professional, Scientific  
                                             and Real Estate,                and Technical Services.            
                                             Miscellaneous Professional,                                        
                                             Scientific, and Technical                                          
                                             Services.                                                          
7819....................................  Services Allied to Motion                                             
                                           Picture Production:                                                  
                                            Talent Payment Services.......  Payroll Services (pt.).             
8099....................................  Health and Allied Services, NEC:                                      
                                            Medical Artists...............  Graphic Design Services (pt.).      
                                            Medical Photography...........  Commercial Photography (pt.).       
8111....................................  Legal Services..................  Offices of Lawyers.                 
8711....................................  Engineering Services............  Engineering Services.               
8712....................................  Architectural Services..........  Architectural Services.             
8713....................................  Surveying Services:                                                   
                                            Except Geophysical Surveying..  Surveying and Mapping Services      
                                                                             (pt.).                             
                                            Geophysical Surveying Services  Geophysical Surveying Services.     
8721@...................................  Accounting, Auditing, and                                             
                                           Bookkeeping Services:                                                
                                            Certified Public Accountants..  Offices of Certified Public         
                                                                             Accountants.                       
                                            Accountants, Except Certified   Offices of Accountants, except      
                                             Public Accountants.             Certified.                         
                                            Payroll Services..............  Payroll Services.                   
8731@...................................  Commercial Physical and                                               
                                           Biological Research:                                                 
                                            Physical and Engineering        Research and Development in the     
                                             Sciences.                       Physical and Engineering Sciences  
                                                                             (pt.).                             
                                            Life Sciences.................  Research and Development in the Life
                                                                             Sciences (pt).                     
8732@...................................  Commercial Economic,                                                  
                                           Sociological, and Educational                                        
                                           Research:                                                            
                                            Social Sciences and Humanities  Research and Development in the     
                                                                             Social Sciences and Humanities     
                                                                             (pt.).                             
                                            Market Research and Opinion     Market Research and Public Opinion  
                                             Research.                       Polling.                           
8733@...................................  Noncommercial Research                                                
                                           Organizations:                                                       
                                            Physical and Engineering        Research and Development in the     
                                             Services.                       Physical and Engineering Sciences  
                                                                             (pt.).                             
                                            Life Sciences.................  Research and Development in the Life
                                                                             Sciences (pt.).                    
                                            Social Sciences and Humanities  Research and Development in the     
                                                                             Social Sciences and Humanities     
                                                                             (pt.).                             
8734....................................  Testing Laboratories............  Testing Laboratories.               
8742@...................................  Management Consulting Services:                                       
                                            Administrative Management and   Administrative and General          
                                             General Management Consulting.  Management Consulting.             
                                            Human Resources and Personnel   Human Resources Consulting (pt.).   
                                             Management Consulting.                                             
                                            Marketing Consulting..........  Marketing Consulting.               
                                            Manufacturing Management,       Process, Physical, Distribution, and
                                             Physical Distribution, and      Logistics Consulting.              
                                             Site Location Consulting.                                          
8743....................................  Public Relations Services.......  Public Relations Services.          
8748@...................................  Business Consulting Services,                                         
                                           Not Elsewhere Classified:                                            
                                            Planners of Land Use..........  Land Use Planners Services.         
                                            Safety Consulting.............  Other Management Consulting         
                                                                             Services.                          
                                            Economic Consultants, Radio     Other Scientific and Technical      
                                             Consultants, Traffic            Consulting Services (pt.).         
                                             Consultants.                                                       
8999@...................................  Services, NEC:                                                        
                                            Nuclear Consultants,            Other Scientific and Technical      
                                             Consulting Geologists,          Consulting Services (pt.).         
                                             Consulting Physicists, and                                         
                                             Actuarial Consulting.                                              
                                            Environmental Consultants.....  Environmental Consulting.           
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of''. @ means time series break has been created that is greater than 3% of
  the 1992 revenues for the 1987 SIC Industry. The abbreviation NEC is used for Not Elsewhere Classified.       



[[Page 26596]]

Description of Changes to the U.S. System

    Forty-eight U.S. industries are included in the NAICS Professional, 
Scientific, and Technical Services subsector. Thirty-one of these are 
new industries (Offices of Notaries, as defined, do not exist in the 
U.S.); four are revised 1987 SIC industries; and 13 are industries that 
existed in 1987. The primary focus of this subsector is to group 
together establishments that make available the particular knowledge, 
expertise or skills of their employees to a wide range of business and 
individual clients. The activities included here can be utilized 
throughout all sectors of the economy. Other activities that do not 
meet this criteria are generally included in the particular subsector 
they serve. The industries within this subsector have similar 
production processes. The changes also help to better achieve 
comparability with Mexico and Canada. The following new industries were 
added for 1997:
    Other Legal Services from part of 1987 SIC 7389, Business Services, 
NEC.
    Offices of Certified Public Accountants from part of 1987 SIC 8721, 
Accounting, Auditing, and Bookkeeping Services.
    Offices of Accountants, Except Certified from part of 1987 SIC 
8721, Accounting, Auditing, and Bookkeeping Services.
    Bookkeeping and Billing Services from part of 1987 SIC 8721, 
Accounting, Auditing, and Bookkeeping Services.
    Payroll Services from part of 1987 SIC 7819, Service Allied to 
Motion Picture Production, and part of 1987 SIC 8721, Accounting, 
Auditing, and Bookkeeping Services.
    Drafting Services from part of 1987 SIC 7389, Business Services, 
NEC.
     Building Inspection Services from part of 1987 SIC 7389, Business 
Services, NEC.
    Surveying and Mapping Services from part of 1987 SIC 8713, 
Surveying Services, and part of 1987 SIC 7389, Business Services, NEC.
    Geophysical Surveying Services from part of 1987 SIC 8713, 
Surveying Services.
    Interior Design Services from part of 1987 SIC 7389, Business 
Services, NEC.
    Industrial Design Services from part of 1987 SIC 7389, Business 
Services, NEC.
    Land Use Planners Services from part of 1987 SIC 8748, Business 
Consulting Services, NEC.
    All Other Design Services from part of 1987 SIC 7389, Business 
Services, NEC.
    Systems Design Services from 1987 SIC 7373, Computer Integrated 
Systems Design, and part of 1987 SIC 7379, Computer Related Services, 
NEC.
    Administrative and General Management Consulting from part of 1987 
SIC 8742, Management Consulting Services.
    Human Resources Consulting from part of 1987 SIC 8742, Management 
Consulting Services, and part of 1987 SIC 7361, Employment Agencies.
    Marketing Consulting from part of 1987 SIC 8742, Management 
Consulting Services.
    Process, Physical Distribution, and Logistics Consulting from part 
of 1987 SIC 8742, Management Consulting Services.
    Other Management Consulting Services from part of 1987 SIC 4731, 
Arrangement of Transportation of Freight and Cargo, and part of 1987 
SIC 8748, Business Consulting Services, NEC.
    Environmental Consulting from part of 1987 SIC 8999, Services NEC.
     Other Scientific and Technical Consulting Services from part of 
1987 SIC 8748, Business Consulting Services, NEC, and part of 1987 SIC 
8999, Services, NEC.
    Research and Development in the Physical and Engineering Sciences 
from part of 1987 SIC 8731, Commercial Physical and Biological 
Research, and part of 1987 SIC 8733, Noncommercial Research 
Organizations.
    Research and Development in the Life Sciences from part of 1987 SIC 
8731, Commercial Physical and Biological Research, and part of 1987 SIC 
8733, Noncommercial Research Organizations.
    Research and Development in the Social Sciences and Humanities from 
part of 1987 SIC 8732, Commercial Economic, Sociological, and 
Educational Research, and part of 1987 SIC 8733, Noncommercial Research 
Organizations.
    Media Buying Agencies from part of 1987 SIC 7319, Advertising, NEC.
     Display Advertising from 1987 SIC 7312, Outdoor Advertising 
Services, and part of 1987 SIC 7319, Advertising, NEC.
    Advertising Material Distributors from part of 1987 SIC 7319, 
Advertising, NEC.
    Other Services Related to Advertising from part of 1987 SIC 5199, 
Nondurable Goods, NEC, and part of 1987 SIC 7319, Advertising, NEC.
    Market Research and Public Opinion Polling from part of 1987 SIC 
8732, Commercial Economic, Sociological, and Educational Research.
    Translation and Interpretation Services from part of 1987 SIC 7389, 
Business Services, NEC.
    All Other Professional, Scientific and Technical Services from part 
of 1987 SIC 7389, Miscellaneous Business Services.
    The following four NAICS industries were modified from their 1987 
definitions:
    Testing Laboratories from 1987 SIC 8734, Testing Laboratories. This 
industry was modified by moving veterinary laboratories to the Support 
Services for Agriculture subsector. This move was made to improve 
comparability with Canada and Mexico and because the production process 
of this type of laboratory was so different from the others that are 
included.
    Graphic Design Services from 1987 SIC 7336, Commercial Art and 
Graphic Design, and part of 1987 SIC 8099, Health and Allied Services, 
NEC. Medical artists of 1987 SIC 8099 were combined here because of the 
similarity of the production process with graphic designers and to 
improve comparability with Mexico and Canada.
    Other Computer Systems Design and Related Services from part of 
1987 SIC 7379, Computer Related Services, NEC. This industry was 
modified by moving computer systems consultants to NAICS industry 
Systems Design Services to improve comparability with Mexico and 
Canada.
    Commercial Photography from 1987 SIC 7335, Commercial Photography, 
and from part of 1987 SIC 8099, Health and Allied Services, NEC. 
Medical photography from 1987 SIC 8099 was combined with commercial 
photography because of the similarity of their production processes.

Part VII--Proposed New Industry Structure for Performing Arts, 
Spectator Sports and Related Industries; Museums, Historical Sites and 
Similar Institutions; and Recreation, Amusement and Gambling

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 17

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

Performing Arts, Spectator Sports and Related Industries
Museums, Historical Sites and Similar Institutions
Recreation, Amusement and Gambling

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be

[[Page 26597]]

shared among the countries and additional discussions will be held 
before a final decision on the structure is made. Each country may add 
additional detailed industries, below the 4-digit level of NAICS, as 
necessary to meet national needs, so long as this additional detail 
aggregates to a 4-digit NAICS level in order to ensure full 
comparability among the three countries. This NAICS structure was 
presented and provisionally accepted at the NAICS Committee meeting 
held on September 27, 1995-September 29, 1995 in Mexico City, Mexico.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    9/29/95
Mexico..............................  /S/ Enrique Ordaz......    9/29/95
United States.......................  /S/ Jack E. Triplett...    9/29/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Performing Arts, Spectator Sports and Related Industries
XXX  Performing Arts Companies
XXXX  Theater Companies
XXXX  Dance Companies
XXXX  Musical Groups and Artists
XXXX  Other Performing Arts Companies
XXX  Spectator Sports
XXXX  Spectator Sports
XXX  Promoters of Arts, Sports and Similar Events
XXXX  Promoters of Arts, Sports and Similar Events with Facilities
XXXX  Promoters of Arts, Sports and Similar Events without 
Facilities
XXX  Agents and Managers for Artists, Athletes and Other 
Entertainers
XXXX  Agents and Managers for Artists, Athletes and Other 
Entertainers
XXX  Independent Artists, Writers and Performers
XXXX  Independent Artists, Writers and Performers
XX  Museums, Historical Sites and Similar Institutions
XXX  Museums, Historical Sites and Similar Institutions
XXXX  Museums
XXXX  Historical Sites
XXXX  Botanical and Zoological Gardens
XXXX  Nature Parks and Similar Institutions
XX  Recreation, Amusement and Gambling Industries
XXX  Sports and Recreation Facilities
XXXX  Golf Courses
XXXX  Skiing Facilities
XXXX  Marinas
XXXX  Recreational, Sports and Fitness Centers
XXXX  Bowling Centers
XXX  Amusement Facilities
XXXX  Amusement and Theme Parks
XXXX  Amusement Arcades and Other Coin-operated Amusement Devices
XXX  Gambling Industries
XXXX  Casinos, except Hotel Casinos
XXXX  Other Gambling Industries
XXX  Other Recreation and Amusement Services
XXXX  Other Recreation and Amusement Services

Attachment 2--North American Industrial Classification System

    Draft Classification for:

Performing Arts, Spectator Sports and Related Industries
Museums, Historical Sites and Similar Institutions
Recreation, Amusement and Gambling Industries

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industry classification for these 
industries.
    The draft classification contains three subsectors, Performing 
Arts, Spectator Sports and Related Industries; Museums, Historical 
Sites and Similar Institutions; and Recreation, Amusement and Gambling 
Industries. These are further subdivided into ten industry groups and 
twenty-three industries.

A General Outline

    The Performing Arts, Spectator Sports and Related Industries 
subsector includes establishments that produce or organize live 
presentations involving the performances of actors and actresses, 
singers, dancers, musical groups and artists, athletes and other 
entertainers. It also includes independent entertainers and the 
establishments that manage their careers. The classification recognizes 
four basic processes: producing events; presenting and promoting 
events; managing and representing entertainers; and finally, providing 
the artistic, creative and technical skills necessary to the production 
of these live events. Four industries are proposed for performing arts, 
each defined on the basis of the particular skills of the entertainers 
involved in the presentations. Promoters that own and operate their 
facilities are distinguished from those that do not, thereby 
emphasizing significant differences in cost structures.
    The proposed structure makes a clear distinction between performing 
arts companies and performing artists (independents). Although not 
unique to arts and entertainment, freelancing is a particularly 
important phenomenon in the Performing Arts, Spectator Sports, and 
Related Industries subsector. Distinguishing this activity from the 
production activity is a meaningful process differentiation. This 
approach, however, is difficult to implement in the case of musical 
groups (companies) and artists, especially pop groups. These 
establishments tend to be more loosely organized and it can be 
difficult to distinguish companies from freelancers. For those reasons, 
NAICS includes one industry that covers both musical groups and musical 
artists.
    The proposed NAICS structure contains two industries for Promoters 
of Arts, Sports and Similar Events, one for those that operate 
facilities and another for those that do not. It is therefore necessary 
for users interested in information by type of event (e.g. performing 
arts as opposed to sports) to rely on product data.
    The Museums, Historical Sites and Similar Institutions subsector 
includes establishments engaged in the preservation and exhibition of 
objects, sites and natural wonders of historical, cultural and 
educational value. The four industries of this subsector are Museums; 
Historic Sites; Botanical and Zoological Gardens; and Nature Parks and 
Similar Institutions.
    The Recreation, Amusement and Gambling Industries subsector 
comprises three industry groups. The Sports and Recreation Facilities 
industry group includes establishments that operate and provide access 
to facilities where patrons can actively participate in sports and 
recreational activities. The six industries of this industry group 
represent the most important types of facilities found in North 
America. The Amusement Facilities industry group contains 
establishments that operate and provide access to sites and facilities 
primarily used for amusement purposes. Finally, the Gambling Industries 
industry group includes operators of casinos, lotteries, bingo halls 
and other establishments primarily engaged in gambling activities.

Limitations and Constraints of the Classification

    The most important limitation of the proposed structure is the 
incomplete coverage of recreational activities.
    Providers of recreational services are often engaged in processes 
classified in other sectors of NAICS. For example, operators of resorts 
and hunting and fishing camps provide both accommodation and 
recreational facilities and services. It is proposed to classify these 
establishments in the Accommodation Services subsector, partly to 
reflect the significant costs associated with the provision of 
accommodation services and partly to ensure consistency with 
international standards. Similarly, some night clubs present live 
entertainment on a regular basis and it can be argued that they could 
be classified in the Promoters of Arts, Sports and Similar Events With 
Facilities industry. However, since most

[[Page 26598]]

of these establishments function as any other drinking place when they 
do not stage entertainment and furthermore because most of their 
revenue is derived from sale of food and beverages, it is proposed to 
classify them with other drinking places. Finally, establishments using 
transportation equipment to provide sightseeing and pleasure cruises 
are classified in the Transportation sector.
    The proposed Gambling Industries group does not provide for full 
coverage of gambling activities. It only includes those establishments 
specializing in such activities. Casino hotels are classified in the 
Accommodation Services subsector while horse and dog racing tracks are 
classified in the Spectator Sports industry group.

Relationship to ISIC

    Each of the NAICS industries created in these subsectors can be 
assigned to a division of the current International Standard Industrial 
Classification of all Economic Activities (ISIC, Revision 3) of the 
United Nations. Nineteen of the twenty-four proposed industries are 
contained within ISIC Division 92, Recreational, Cultural, and Sporting 
Activities. The five industries not in ISIC Division 92 are small 
pieces of ISIC Division 60, Land Transport, Transport Via Pipelines; 
ISIC Division 63, Supporting and Auxiliary Transport Activities, 
Activities of Travel Agencies; ISIC Division 70, Real Estate 
Activities; and ISIC Division 74, Other Business Activities. The 
discrepancies between these proposed NAICS industries and ISIC are 
minor and do not have a significant impact on the comparability of the 
data.

Some Changes to the National Classifications

    For Canada, the proposed NAICS structure constitutes a 
restructuring and expansion of industries currently found in major 
group 96, Amusement and Recreational Service Industries, of the 1980 
Canadian Standard Industrial Classification (CSIC). A few activities 
classified in other areas of the classification are now included in 
this structure and industry groups CSIC 961, Motion Picture, Audio and 
Video Production and Distribution, and CSIC 962, Motion Picture 
Exhibition are moved to the proposed Information sector.
    The activities included in the Performing Arts Companies industry 
group are all part of CSIC 9631, Entertainment Production Companies, 
except for circuses (CSIC 9692) and dinner theaters (CSIC 9211). The 
remaining components of CSIC 9631, Promoters of Artistic Events and 
Independent Artists, are assigned to different NAICS industries.
    The NAICS Spectator Sports industry corresponds to CSIC 964, 
Commercial Spectator Sports, except for promoters of sports events that 
are now classified in a newly created industry group for Promoters 
(presenters) of Arts, Sports and Similar Events.
    In the CSIC, promoters are closely associated to the type of event 
they are promoting (arts, sports, fairs, etc.) and are classified in 
different industries. The approach adopted for NAICS, that of combining 
all promoters in the same group, therefore represents a significant 
change to the current practice.
    A similar approach is proposed for Agents and Managers for Artists, 
Athletes and Other Entertainers and for Independent Artists, Writers 
and Performers. Agents and managers, currently classified in arts, 
sports or business service depending on the type of client they 
represent, are grouped in a single NAICS industry. Similarly, 
independent artists, writers and performers, currently found in four 
industries, are combined in one class.
    The Museums, Historical Sites and Similar Institutions industry 
group includes activities that are classified in Education (Museums, 
Heritage and Historic Sites) and Amusement and Recreation (botanical 
gardens, zoological gardens, nature parks, exhibition centers, etc.).
    Three of the five industries proposed for the operators of Sports 
and Recreational Facilities industry group already exist in the CSIC. 
The most significant change in this area is the adoption of a 
Recreational, Sports and Fitness Centers industry that includes 
components of three existing classes, namely, CSIC 9652, Curling clubs; 
CSIC 9659, Other Sports and Recreation Clubs; and CSIC 9799, Other 
Personal and Household Services.
    Finally, the proposed Gambling Industries categories are components 
of CSIC 9961, Gambling Industries. At the national level, an additional 
industry will be created for Lotteries.
    For Mexico, the contents of these subsectors essentially stem from 
the CMAP subsector 94, Entertainment, Culture, Recreation and Sports, 
although an important restructuring has occurred. In addition, some 
classes of CMAP subsector 94 related to motion pictures, radio and 
television went into the proposed NAICS Information sector, and those 
related to the teaching of gymnastics and martial arts moved to the 
proposed NAICS Education Services subsector.
    In order to accommodate this proposed structure of new subsectors, 
Mexico included some activities from other subsectors such as tour 
guide services, marinas, and the retail sale of lottery tickets.
    For the United States, the proposed NAICS structure represents a 
significant change from the current Standard Industrial Classification 
System (SIC) system. The NAICS industries are more clearly defined than 
those in the current system and ambiguous distinctions such as 
``membership'' criteria have been eliminated in NAICS industries.
    New industries are established for various types of performing arts 
companies, spectator sports, museums, historical sites and similar 
institutions, gambling services and operators of sports and recreation 
facilities. Overall, there are nine new industries in the NAICS 
structure for amusement, recreation, museums and botanical and 
zoological gardens.
    Separate industries are established for promoters of events, agents 
and managers of artists, athletes, and entertainers, as well as a new 
industry for artists and entertainers who normally work independently 
or on a contract basis. These types of establishments are included in 
many different industries in the SIC system, including some in 1987 SIC 
8999, Services, Not Elsewhere Classified (NEC), as well as in other NEC 
categories, such as 1987 SIC 7999, Amusement and Recreation Services, 
Not Elsewhere Classified.
    The ``not elsewhere classified (NEC)'' industries in the 1987 SIC 
system are significantly reduced in NAICS, because many types of 
establishments in this category are assigned to more specific, process-
based categories.

Achievement of Objectives

    The proposed classification structure meets the objectives for the 
North American Industry Classification System (NAICS). It is comprised 
of industries that group establishments with similar production 
processes, that is, it applies the production oriented economic 
concept. The hierarchical structure of the classification generally 
follows the production concept at each level.
    The classification achieves comparability for the three 
participating countries. Based on existing data, each country expects 
to be able to publish data regularly or in the near future at the 
industry (4-digit) level of this structure. All countries agree on the 
definitions of the industries.
    Other objectives of the NAICS project have also been met. The 
inclusion of

[[Page 26599]]

new and emerging services industries are introduced in this proposed 
structure. These classifications reflect changes in the arts, 
entertainment, and recreation industries that have occurred in the past 
but have never been identified in the existing classification systems 
of the three countries.
    The industries in most cases are economically significant in all 
three countries. Smaller industries are present because comparability 
is given priority over size.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the three NAICS industry 
subsectors presented in Part VII, Section A--Attachment 1, contain less 
detail than is currently in the U.S. SIC system, and less detail than 
is required to meet important analytical requirements in the U.S. The 
three country agreement on NAICS envisions that each country may 
develop national detailed industries below the NAICS industry level, so 
long as the national detail can be aggregated to the NAICS 
classification, thus assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the three 
NAICS industry subsectors covered in Part VII of this notice. For cases 
where no 5-digit detail is shown, the ECPC is proposing that the NAICS 
4-digit industries will also represent the most detailed U.S. 
industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Performing Arts, Spectator                                                                 
                      Sports and Related                                                                        
                      Industries:                                                                               
XXX................    Performing Arts Companies:                                                               
XXXX...............     Theater Companies.........  N                   *5812  Eating Places (dinner theaters). 
                                                    ................    *7922  Theatrical Producers (except     
                                                                                Motion Pictures) and            
                                                                                Miscellaneous Theatrical        
                                                                                Services (theater companies,    
                                                                                opera companies).               
XXXX...............     Dance Companies...........  N                   *7922  Theatrical Producers (except     
                                                                                Motion Pictures) and            
                                                                                Miscellaneous Theatrical        
                                                                                Services (ballet and dance      
                                                                                companies).                     
XXXX...............     Musical Groups and Artists  N                   *7929  Bands, Orchestras, Actors, and   
                                                                                Entertainment Groups (musical   
                                                                                groups and artists).            
XXXX...............     Other Performing Arts       N                   *7929  Bands, Orchestras, Actors, and   
                         Companies.                                             Entertainment Groups (except    
                                                                                musical groups and artists).    
                                                    ................    *7999  Amusement and Recreation         
                                                                                Services, Not Elsewhere         
                                                                                Classified (circus companies).  
XXX................    Spectator Sports:                                                                        
XXXX...............     Spectator Sports:                                                                       
XXXXX..............      Sports Clubs.............  N                   *7941  Professional Sports Clubs and    
                                                                                Promoters (professional sports  
                                                                                clubs).                         
XXXXX..............      Race Tracks..............  N                   *7948  Racing, Including Track          
                                                                                Operations (track operations).  
XXXXX..............      Other Spectator Sports...  N                   *7941  Professional Sports Clubs and    
                                                                                Promoters (except sports clubs, 
                                                                                stadium operators, sports       
                                                                                promoters and agents).          
                                                    ................    *7948  Racing, Including Track          
                                                                                Operations (except track        
                                                                                operators).                     
                                                    ................    *7999  Amusement and Recreation         
                                                                                Services, NEC (professional     
                                                                                athletes).                      
XXX................    Promoters of Arts, Sports                                                                
                        and Similar Events:                                                                     
XXXX...............     Promoters of Arts, Sports   N                   *6512  Operators of Nonresidential      
                         and Similar Events with                                Buildings (stadium and arena    
                         Facilities.                                            owners).                        
                                                    ................    *7922  Theatrical Procedures (except    
                                                                                Motion Pictures) and            
                                                                                Miscellaneous Theatrical        
                                                                                Services (theater operators).   
                                                    ................    *7941  Professional Sports Clubs and    
                                                                                Promoters (stadium operators).  
XXXX...............     Promoters of Arts, Sports   N                   *7922  Theatrical Producers (except     
                         and Similar Events                                     Motion Pictures) and            
                         without Facilities.                                    Miscellaneous Theatrical        
                                                                                Services (theatrical promoters).
                                                    ................    *7941  Professional Sports Clubs and    
                                                                                Promoters (sports promoters).   
XXX................    Agents and Managers for                                                                  
                        Artists, Athletes and                                                                   
                        Other Entertainers:                                                                     
XXXX...............     Agents and Managers for     N                   *7389  Business Services, NEC (agents   
                         Artists, Athletes, and                                 and brokers for authors and     
                         Other Entertainers.                                    artists).                       
                                                    ................    *7922  Theatrical Producers (except     
                                                                                Motion Pictures) and            
                                                                                Miscellaneous Theatrical        
                                                                                Services (theatrical agents).   
                                                    ................    *7941  Professional Sports Clubs and    
                                                                                Promoters (sports agents).      
XXX................    Independent Artists,                                                                     
                        Writers, and Performers:                                                                
XXXX...............     Independent Artists,        N                   *7819  Services Allied to Motion Picture
                         Writers, and Performers.                               Production (film directors and  
                                                                                related motion picture          
                                                                                production services,            
                                                                                independent).                   
                                                    ................    *7929  Bands, Orchestras, Actors, and   
                                                                                Other Entertainers and          
                                                                                Entertainment Services (actors  
                                                                                and actresses).                 
                                                    ................    *8999  Services, Not Elsewhere          
                                                                                Classified (authors, artists,   
                                                                                and related technical services  
                                                                                independent).                   
XX.................  Museums, Historical Sites and                                                              
                      Similar Institutions:                                                                     
XXX................    Museums, Historical Sites                                                                
                        and Similar Institutions:                                                               
XXXX...............     Museums...................  R                   *8412  Museums and Art Galleries (except
                                                                                historic and heritage sites).   
XXXX...............     Historical Sites..........  N                   *8412  Museums and Art Galleries        
                                                                                (historic and heritage sites).  

[[Page 26600]]

                                                                                                                
XXXX...............     Botanical and Zoological    R                   *8422  Arboreta and Botanical and       
                         Gardens.                                               Zoological Gardens (except      
                                                                                nature parks and reserves).     
XXXX...............     Nature Parks and Similar    N                   *7999  Amusement and Recreation         
                         Institutions.                                          Services, NEC (caverns and      
                                                                                miscellaneous commercial parks).
                                                    ................    *8422  Arboreta and Botanical and       
                                                                                Zoological Gardens (nature parks
                                                                                and reserves).                  
XX.................  Recreation, Amusement and                                                                  
                      Gambling Industries:                                                                      
XXX................    Operators of Sports and                                                                  
                        Recreation Facilities:                                                                  
XXXX...............     Golf Courses..............  N                    7992  Public Golf Courses.             
                                                    ................    *7997  Membership Sports and Recreation 
                                                                                Clubs (golf clubs).             
XXXX...............     Skiing Facilities.........  N                   *7999  Amusement and Recreation         
                                                                                Services, NEC (skiing           
                                                                                facilities).                    
XXXX...............     Marinas...................  E                    4493  Marinas.                         
XXXX...............     Recreational, Sports and    N                    7991  Physical Fitness Facilities.     
                         Fitness Centers.                                                                       
                                                    ................    *7997  Membership Sports and Recreation 
                                                                                Clubs (recreation clubs with    
                                                                                facilities).                    
                                                    ................    *7999  Amusement and Recreation         
                                                                                Services, NEC (nonmembership    
                                                                                recreation facilities).         
XXXX...............     Bowling Centers...........  E                    7933  Bowling Centers.                 
XXX................    Amusement Facilities:                                                                    
XXXX...............     Amusement and Theme Parks.  E                    7996  Amusement Parks.                 
XXXX...............     Amusement Arcades and       R                   *7993  Coin-Operated Amusement Devices  
                         Other Coin Operated                                    (except slot machine operators).
                         Amusement Devices.                                                                     
XXX................    Gambling Industries:                                                                     
XXXX...............     Casinos, except Hotel       N                   *7999  Amusement and Recreation         
                         Casinos.                                               Services, NEC (casinos, except  
                                                                                hotel casinos).                 
XXXX...............     Other Gambling Industries.  N                   *7993  Coin-Operated Amusement Devices  
                                                                                (slot machine operators).       
                                                    ................    *7999  Amusement and Recreation         
                                                                                Services, NEC (lottery, bingo,  
                                                                                bookie, and other gambling      
                                                                                operations).                    
XXX................    Other Recreation and                                                                     
                        Amusement Services:                                                                     
XXXX...............     Other Recreation and        N                   *7911  Dance Studios, Schools, and Halls
                         Amusement Services.                                    (except instruction).           
                                                    ................    *7997  Membership Sports and Recreation 
                                                                                Clubs (recreation clubs without 
                                                                                facilities).                    
                                                    ................    *7999  Amusement and Recreation         
                                                                                Services, NEC (except circuses, 
                                                                                professionals, athletes, caverns
                                                                                and other commercial parks,     
                                                                                skiing facilities, casinos and  
                                                                                other gambling operations,      
                                                                                amusement and recreation        
                                                                                facilities, sports instruction, 
                                                                                sports equipment rental, and    
                                                                                amusement or scenic transport   
                                                                                operations).                    
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and 
  * means ``part of.'' The abbreviation NEC is used for Not Elsewhere Classified.                               



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
4493....................................  Marinas.........................  Marinas.                            
5812@...................................  Eating Places (Dinner theatres).  Theater Companies (pt.).            
6512@...................................  Operators of Nonresidential                                           
                                           Buildings:                                                           
                                            Stadium and Arena Owners......  Promoters of Arts, Sports and       
                                                                             Similar Events with Facilities     
                                                                             (pt.).                             
7389@...................................  Business Services, NEC:                                               
                                            Agents and Brokers for Authors  Agents and Managers for Artists,    
                                             and Artists.                    Athletes, and Other Entertainers   
                                                                             (pt.).                             
                                            Other.........................  (Has been distributed among other   
                                                                             service related subsectors).       
7819@...................................  Services Allied to Motion                                             
                                           Picture Production:.                                                 
                                            Film Directors and Related      Independent Artists, Writers, and   
                                             Motion Picture Production       Performers (pt.).                  
                                             Services, Independent.                                             
7911@...................................  Dance Studios, Schools and                                            
                                           Halls:                                                               
                                            Ballroom and Dance Hall         Other Recreation and Amusement      
                                             Operations.                     Services (pt.).                    
                                            Instruction Studios and         Fine Arts Schools (pt.) (Included in
                                             Schools, Professional Dancing   Educational Services subsector).   
                                             Schools.                                                           
7922@...................................  Theatrical Producers (Except                                          
                                           Motion Picture) and                                                  
                                           Miscellaneous Theatrical                                             
                                           Services:                                                            
                                            Theater and Opera Companies...  Theater Companies (pt.).            
                                            Theatrical Agents.............  Agents and Managers for Artists,    
                                                                             Athletes and Other Entertainers    
                                                                             (pt.).                             
                                            Ballet and Dance Companies....  Dance Companies.                    
                                            Theater Operators.............  Promoters of Arts, Sports, and      
                                                                             Similar Events with Facilities     
                                                                             (pt.).                             

[[Page 26601]]

                                                                                                                
                                            Theatrical Promoters..........  Promoters of Arts, Sports, and      
                                                                             Similar Events without Facilities  
                                                                             (pt.).                             
                                            Theatrical Agents.............  Agents and Managers for Artists,    
                                                                             Athletes, and Other Entertainers   
                                                                             (pt.).                             
7929@...................................  Bands, Orchestras, Actors, and                                        
                                           Other Entertainers and                                               
                                           Entertainment Groups:                                                
                                            Musical Groups and Artists,     Musical Groups and Artists.         
                                             Orchestras.                                                        
                                            Actors and Actresses..........  Independent Artists, Writers, and   
                                                                             Performers (pt.).                  
                                            Except Musical Groups and       Other Performing Arts Companies     
                                             Artists, Actors and             (pt.).                             
                                             Actresses:.                                                        
7933....................................  Bowling Centers.................  Bowling Centers.                    
7941@...................................  Professional Sports Clubs and                                         
                                           Promoters:                                                           
                                            Professional Sports Clubs.....  Sports Clubs.                       
                                            Sports Agents.................  Agents and Managers of Artists,     
                                                                             Athletes, and other Entertainers   
                                                                             (pt.).                             
                                            Sports Promoters..............  Promoters of Arts, Sports and       
                                                                             Similar Events without Facilities  
                                                                             (pt.).                             
                                            Stadium Operators.............  Promoters of Arts, Sports, and      
                                                                             Similar Events with Facilities     
                                                                             (pt.).                             
                                            Except Sports Clubs, Stadium    Other Spectator Sports (pt.).       
                                             Operators, Sports Promoters,                                       
                                             and Agents.                                                        
7948@...................................  Racing, Including Track                                               
                                           Operations:                                                          
                                            Racetracks....................  Race Tracks.                        
                                            Racing, except Track Operators  Other Spectator Sports (pt.).       
7991@...................................  Physical Fitness Facilities.....  Recreational, Sports and Fitness    
                                                                             Centers (pt.).                     
7992@...................................  Public Golf Courses.............  Golf Courses (pt.).                 
7993@...................................  Coin Operated Amusement Devices:                                      
                                            Except Gambling (Slot Machine)  Amusement Arcades and Other Coin    
                                             Operators.                      Operated Amusement Devices.        
                                            Gambling (Slot Machine)         Other Gambling Industries (pt.).    
                                             Operators.                                                         
7996....................................  Amusement Parks.................  Amusement and Theme Parks.          
7997@...................................  Membership Sports and Recreation                                      
                                           Clubs:                                                               
                                            Golf Clubs....................  Golf Courses (pt.).                 
                                            Recreation Clubs with           Recreational Sports and Fitness     
                                             Facilities.                     Centers (pt.).                     
                                            Recreation Clubs Without        Other Recreation and Amusement      
                                             Facilities.                     Services (pt.).                    
7999@...................................  Amusement and Recreation                                              
                                           Services, NEC:                                                       
                                             Circus Companies.............  Other Performing Arts Companies     
                                                                             (pt.).                             
                                            Professional Athletes.........  Other Spectator Sports (pt.).       
                                            Skiing Facilities.............  Skiing Facilities.                  
                                            Nonmembership Recreation        Recreation Sports and Fitness       
                                             Facilities.                     Centers (pt.).                     
                                            Casinos, except Hotel Casinos.  Casinos, except Hotel Casinos.      
                                            Lottery, Bingo, Bookie and      Other Gambling Industries (pt.).    
                                             Other Gaming Operations.                                           
                                            Caverns and Miscellaneous       Nature Parks and Similar            
                                             Commercial Parks.               Institutions (pt.).                
                                            Sports Instruction............  Athletic Instruction (Included in   
                                                                             Educational Services subsector).   
                                            Sports Equipment Rental.......  Rental of Recreation Goods (Included
                                                                             in Rental and Leasing subsector).  
                                            Scenic Transport Operations,    Scenic and Sightseeing              
                                             Land.                           Transportation, Land (Included in  
                                                                             Scenic and Sightseeing             
                                                                             Transportation subsector).         
                                            Scenic Transport Operations,    Scenic and Sightseeing              
                                             Water.                          Transportation, Water (Included in 
                                                                             Scenic and Sightseeing             
                                                                             Transportation subsector.          
                                             Amusement and Recreation       Other Recreation and Amusement      
                                             Services, NEC (except           Services (pt.).                    
                                             circuses, professional                                             
                                             athletes, caverns, and other                                       
                                             commercial parks, skiing                                           
                                             facilities, casinos and other                                      
                                             gambling operations,                                               
                                             amusement and recreation                                           
                                             facilities).                                                       
8412....................................  Museums and Art Galleries:                                            
                                             Museums......................  Museums.                            
                                            Historical and Heritage Sites.  Historical Sites.                   
8422....................................  Arboreta and Botanical or                                             
                                           Zoological Gardens:                                                  
                                            Botanical and Zoological        Botanical and Zoological Gardens.   
                                             Gardens.                                                           
                                            Nature Parks and Reserves.....  Nature Parks and Similar            
                                                                             Institutions (pt.).                
8999....................................  Services, Not Elsewhere                                               
                                           Classified:                                                          
                                            Authors, Artists, and Related   Independent Artists, Writers, and   
                                             Technical Services,             Performers (pt.).                  
                                             Independent.                                                       
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means time series break has been created that is greater than 3%  
  of the 1992 revenues for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere Classified.    



[[Page 26602]]

Description of Changes to the U.S. System

    The industries included in the following subsectors were primarily 
created from the twelve 1987 SICs of Major Group 79, Amusement and 
Recreation Services. For time series linkage, a time series break 
greater than three percent of their 1992 revenue is estimated for ten 
of these industries.
    1. Performing Arts, Spectator Sports and Related Industries--There 
were eleven new industries added to the 1997 industry structure in this 
subsector to group those activities with the same production process 
and to improve overall comparability with Mexico and Canada. The 
underlying focus of this subsector was to group together those 
entertainment activities that are more visual and non-participatory. 
The following new industries were created:
    Theater Companies from part of 1987 SIC 5812, Eating Places, and 
part of 1987 SIC 7922, Theatrical Producers (Except Motion Picture) and 
Miscellaneous Theatrical Services.
    Dance Companies from part of 1987 SIC 7922, Theatrical Producers 
(Except Motion Picture) and Miscellaneous Theatrical Services.
    Musical Groups and Artists from part of 1987 SIC 7929 Bands, 
Orchestras, Actors, and Other Entertainers and Entertainment Groups.
    Other Performing Arts Companies from part of 1987 SIC 7929, Bands, 
Orchestras, Actors, and Other Entertainers and Entertainment Groups, 
and part of 1987 SIC 7999, Amusement and Recreation Services, NEC.
    Sports Clubs from part of 1987 SIC 7941, Professional Sports Clubs 
and Promoters.
    Race Tracks from part of 1987 SIC 7948, Racing, Including Track 
Operation.
    Other Spectator Sports from part of 1987 SIC 7941, Professional 
Sports Clubs and Promoters; part of 1987 SIC 7948, Racing, Including 
Track Operation; and part of 1987 SIC 7999, Amusement and Recreation 
Services, NEC.
    Promoters of Arts, Sports and Similar Events With Facilities from 
part of 1987 SIC 6512, Operators of Nonresidential Buildings; part of 
1987 SIC 7922, Theatrical Producers (Except Motion Picture) and 
Miscellaneous Theatrical Services; and part of 1987 SIC 7941, 
Professional Sports Clubs and Promoters.
    Promoters of Arts, Sports and Similar Events without Facilities 
from part of 1987 SIC 7922, Theatrical Producers (Except Motion 
Picture) and Miscellaneous Theatrical Services, and part of 1987 SIC 
7941, Professional Sports Clubs and Promoters.
    Agents and Managers for Artists, Athletes and Other Entertainers 
from part of 1987 SIC 7389, Business Services, NEC; part of 1987 SIC 
7922, Theatrical Producers (Except Motion Picture) and Miscellaneous 
Theatrical Services; and part of 1987 SIC 7941, Professional Sports 
Clubs and Promoters.
    Independent Artists, Writers, and Performers from part of 1987 SIC 
7819, Services Allied to Motion Picture Production; part of 1987 SIC 
7929, Bands, Orchestras, Actors, and other Entertainers and 
Entertainment Groups; and part of 1987 SIC 8999, Services, NEC.
    2. Museums, Historic Sites and Similar Institutions--The NAICS 
industries within this subsector were essentially created from the two 
industries of 1987 Major Group 84, Museums, Art Galleries, and 
Botanical, and Zoological Gardens. Two new industries were added for 
this 1997 industry subsector and two industries reflect content changes 
from their 1987 definitions. These changes were made to better 
represent the production process differences among these activities. 
The following industries were added for 1997:
    Historical Sites from part of 1987 SIC 8412, Museums and Art 
Galleries.
    Nature Parks and Similar Institutions from part of SIC 7999, 
Amusement and Recreation Services, NEC; and part of 1987 SIC 8422, 
Arboreta and Botanical or Zoological Gardens.
    The following two industries represent content changes from 1987:
    Museums from part of 1987 SIC 8412, Museums and Art Galleries.
    Botanical and Zoological Gardens from part of 1987 SIC 8422, 
Arboreta and Botanical Gardens.
    3. Recreation, Amusement and Gambling Industries--This subsector 
consists of 10 industries. Six new industries were added to the 1997 
structure for this subsector, one industry represents a 1987 industry 
with content changes, and three industries from 1987 were included 
without any changes. The NAICS industries within this subsector 
represent an effort to group those activities with the same production 
process and to improve comparability with Mexico and Canada. The basis 
for developing this subsector was to group together entertainment 
activities that are participatory in nature and to eliminate industry 
distinctions based on membership. The following new industries were 
created:
    Golf Courses from 1987 SIC 7992, Public Golf Courses, and part of 
1987 SIC 7997, Membership Sports and Recreation Clubs.
    Skiing Facilities from part of 1987 SIC 7999, Amusement and 
Recreation Services, NEC.
    Recreational, Sports and Fitness Centers from 1987 SIC 7991, 
Physical Fitness Facilities; part of 1987 SIC 7997, Membership Sports 
and Recreation Clubs; and part of 1987 SIC 7999, Amusement and 
Recreation Services, NEC.
    Casinos, Except Hotel Casinos from part of 1987 SIC 7999, Amusement 
and Recreation Services, NEC.
    Other Gambling Industries from part of 1987 SIC 7993, Coin-Operated 
Amusement Devices, and part of 1987 SIC 7999, Amusement and Recreation 
Services, NEC.
    Other Recreation and Amusement Services from part of 1987 SIC 7911, 
Dance Studios, Schools, and Halls; part of 1987 SIC 7997, Membership 
Sports and Recreation Clubs; and part of 1987 SIC 7999, Amusement and 
Recreation Services, NEC.
    The following industry represents a change in content from 1987:
    Amusement Arcades and Other Coin-Operated Amusement Devices from 
part of 1987 SIC 7993, Coin-Operated Amusement Devices.

Part VIII--Proposed New Industry Structure for Information

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 18

    This Document represents the proposed agreement for the North 
American Industry Classification System (NAICS) on the boundaries of 
the following sector and the 4-digit industries of which it is 
composed:

Information, to be described as:
    Information and Cultural Industries in Canada
    Informacion en Medios Masivos in Mexico
    Information in the United States

    It also displays an aggregation structure that is accepted by all 
three countries, along with a brief description of the structure and 
its details (Attachments 1 and 2).
    Each country agrees to release a copy of the proposed NAICS 
structure to interested data users. Comments received will be shared 
among the countries and additional discussions will be held before a 
final decision on the structure is made. Each country may add 
additional detailed industries, below the 4-digit level of NAICS, as 
necessary to meet national needs, so

[[Page 26603]]

long as this additional detail aggregates to a 4-digit NAICS level in 
order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on September 27, 1995-September 29, 1995 in 
Mexico City, Mexico.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    9/29/95
Mexico..............................  /S/ Enrique Ordaz......    9/29/95
United States ......................  /S/ Jack E. Triplett...    9/29/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Publishing
XXX  Newspaper, Periodical, Book, and Data Base Publishing
XXXX  Newspaper Publishing
XXXX  Periodical Publishing
XXXX  Book Publishing
XXXX  Database Publishing
XXXX  Other Publishing
XXX  Software Publishing
XXXX  Software Publishing
XX  Motion Picture and Sound Recording
XXX  Motion Picture and Video Industries
XXXX  Motion Picture and Video Production
XXXX  Motion Picture and Video Distribution
XXXX  Teleproduction and Other Post-Production Services
XXXX  Motion Picture and Video Exhibition
XXXX  Other Motion Picture and Video Industries
XXX  Sound Recording Industries
XXXX  Record Production Companies
XXXX  Integrated Record Companies
XXXX  Music Publishing
XXXX  Sound Recording Studios
XXXX  Other Sound Recording Industries
XX  Broadcasting and Telecommunications
XXX  Radio and Television Broadcasting
XXXX  Radio Broadcasting
XXXX  Television Broadcasting
XXX  Cable Networks and Program Distribution
XXXX  Cable Networks
XXXX  Cable and Program Distribution
XXX  Telecommunications
XXXX  Wired Telecommunications Carriers
XXXX  Wireless Telecommunications Carriers, Except Satellite
XXXX  Telecommunications Resellers
XXXX  Satellite Telecommunications
XXXX  Other Telecommunications
XX  Information Services and Data and Transaction Processing
XXX  Information Services
XXXX  News Syndicates
XXXX  Libraries and Archives
XXXX  Other Information Services
XXX  Data and Transaction Processing
XXXX  Data and Transaction Processing

Attachment 2--North American Industry Classification System

    Draft Classification For:

Information and Cultural Industries in Canada
Information en Medios Masivos in Mexico
Information in the United States

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industry classification for these 
industries.
    The draft classification includes four subsectors, Publishing; 
Motion Picture and Sound Recording; Broadcasting and 
Telecommunications; and Information Services and Data and Transaction 
Processing Services. These are further subdivided into 9 industry 
groups and 29 industries.

A General Outline

    The expressions ``information age'' and ``global information 
economy'' are used with considerable frequency today. The general idea 
of an ``information economy'' includes both the notion of industries 
primarily producing, processing, and distributing information, as well 
as the idea that every industry is using available information and 
information technology to reorganize and make themselves more 
productive.
    For the purpose of developing NAICS, it is the transformation of 
information into a commodity that is produced, manipulated and 
distributed by a number of growing industries that is at issue. The 
proposed Information sector groups three types of establishments: those 
engaged in producing, manipulating and distributing information and 
cultural products; those that provide the means to transmit or 
distribute these products as well as data or communications; and those 
that process data or transactions. (Cultural products are those that 
directly express attitudes, opinions, ideas, values, and artistic 
creativity; provide entertainment; or offer information and analysis 
concerning the past and present. Included in this definition are 
popular, mass-produced, products as well as cultural products that 
normally have a more limited audience, such as poetry books, literary 
magazines or classical records.) These activities are currently 
classified throughout the existing national classifications; 
traditional publishing is in manufacturing, broadcasting in 
communications, software production in business services, film 
production in amusement services, etc.
    The unique characteristics of information and cultural products, 
and of the processes involved in their production and distribution, 
justify the creation of an Information sector, distinct from the goods-
producing and service-producing sectors. Some of these characteristics 
are:
    1. Unlike traditional goods, an ``information or cultural product'' 
such as a newspaper or television program does not necessarily have 
tangible qualities, nor is it necessarily associated with a particular 
form. A movie can be shown at a movie theater, on a television 
broadcast, through video on demand or rented at a local video store. A 
sound recording can be aired on radio, embedded in multi-media products 
or sold at a record store.
    2. Unlike traditional services, the delivery of these products does 
not require direct contact between the supplier and the consumer.
    3. The value of these products to the consumer does not lie in 
their tangible qualities but in their information, educational, 
cultural or entertainment content.
    4. Unlike goods or services, information and cultural products can 
be copied easily. The law has long recognized this; copyright law 
protects the intangible property of intellectual creations such as 
books and sound recordings. Copyright applies to all original literary, 
dramatic, musical, and artistic works, including databases and computer 
programs.
    5. The intangible property aspect of information and cultural 
products makes the processes involved in their production and 
distribution very different from goods and services. Only those 
possessing the rights to these works are authorized to reproduce, 
alter, improve and distribute them. Acquiring and using these rights 
often involves significant costs. In addition, technology is 
revolutionizing the distribution of these products. It is possible to 
distribute them in a physical form, via broadcast or on line.
    6. Distributors of information and cultural products can easily add 
value to the products they distribute. For instance, broadcasters add 
advertising not contained in the original product. This capacity means 
that unlike traditional distributors, they derive revenue not from sale 
of the distributed product to the final consumer, but from those who 
pay for the privilege of adding information to the original product. 
Similarly, a CD-ROM publisher can acquire the rights to thousands of 
previously published newspaper and periodical articles and add new 
value by providing search and software and organizing the information 
in a way that facilitates research and retrieval. These products often 
command a much higher price than the original information.

[[Page 26604]]

    The distribution modes for information commodities may either 
eliminate the necessity for traditional manufacture, or reverse the 
conventional order of manufacture-distribute: A newspaper distributed 
on line, for example, can be printed locally or by the final consumer. 
Similarly, it is anticipated that packaged software, which today is 
mainly bought through the traditional retail channels, will soon be 
available mainly on line. The NAICS Information sector is designed to 
make such economic changes transparent as they occur, or to facilitate 
designing surveys that will monitor the new phenomena and provide data 
to analyze the changes. Other classification systems tend to obscure 
economic changes of this kind.
    Many of the industries in the NAICS information sector are engaged 
in producing and manipulating products protected by copyright law, or 
in distributing them (other than distribution by traditional wholesale 
and retail methods). Examples are traditional publishing industries, 
software and database publishing industries and film and sound 
industries. Broadcasting and telecommunication industries, and 
information providers and processors, are also included in the 
information sector, because their technologies are so closely linked to 
other industries in the information sector.
    Although many new industries have been created for this sector, 
most of the activities it contains have existed for some time and are 
distributed throughout the existing classifications. The following 
paragraphs provide a brief description of the individual components of 
this sector.
    The Publishing subsector groups establishments engaged in the 
publishing of newspapers, periodicals, and books, as well as database 
and software publishing. In general, publishers issue copies of works 
for which they possess copyright for sale to the general public, in one 
or more formats including traditional print form, CD-ROM or on line. 
Publishers may publish works originally created by others for which 
they have obtained the rights, and/or works that they have created in-
house.
    In most other classification systems, publishing is treated as a 
subsidiary activity to a manufacturing activity--book and newspaper 
publishing, for example, are depicted as subsidiary activities to 
printing, and placed with printing in the classification. In NAICS, 
publishing--the reporting, writing, editing, and other processes that 
are required to create an edition of a newspaper, for example--is 
treated as a major economic activity in its own right, and classified 
in the Information sector, whereas printing remains in the NAICS 
Manufacturing sector. In part, the NAICS classification reflects the 
fact that publishing increasingly takes place in establishments that 
are physically separate from the associated printing establishments. 
More crucially, the NAICS classification of book and newspaper 
publishing is intended to portray their roles in a modern economy, in 
which they do not resemble manufacturing activities.
    Software publishing is included here because the activity--creation 
of a copyrighted product and bringing it to market--is equivalent to 
the creation process for other types of intellectual products. 
Reproduction of pre-packaged software is treated in NAICS as a 
manufacturing activity; on-line distribution of software products is in 
the Information sector, and custom design of software to client 
specifications remains in business services. These distinctions arise 
because of the different ways that software is created, reproduced, and 
distributed.
    The Motion Picture and Sound Recording subsector groups 
establishments involved in the production and distribution of motion 
pictures and sound recordings (those involved exclusively in the 
wholesaling of sound recordings are classified in Wholesale Trade). 
While motion picture and sound recordings are also ``published,'' the 
processes involved are sufficiently different from those traditional 
publishing industries to warrant placing them in the Motion Picture and 
Sound Recording subsector. The production and distribution of these 
products involves a complex process and several distinct industries.
    The Motion Picture and Video Industries industry group includes 
separate industries for Motion Picture and Video Production, Motion 
Picture and Video Distribution, Teleproduction and Other Post-
Production Services, Motion Picture and Video Exhibition, and Other 
Motion Picture and Video Industries. The distribution industry includes 
establishments primarily engaged in acquiring the distribution rights 
(major input) for films and programs, and charging such clients as 
movie theaters and broadcasters to show them; those engaged in 
wholesaling videos to retail stores and rental outlets are classified 
in Wholesale Trade.
    The Sound Recording Industries industry group contains new classes 
for Record Production Companies, Integrated Record Companies, Music 
Publishing, Sound Recording Studios, and Other Sound Recording 
Industries. Record production companies are primarily engaged in 
searching out, identifying and contracting artists for which they 
arrange and finance the production of master tapes for which they hold 
the reproduction rights. Establishments in this industry do not own 
duplication facilities or have distribution capabilities, so they 
commercialize these rights through leasing/licensing agreements with 
third parties. Integrated record production companies (major record 
labels) integrate the production, manufacturing and/or distribution 
functions, commercializing reproduction rights through these vertically 
integrated operations. While establishments engaged in record 
production derive most of their revenues from leasing/licensing the 
reproduction rights of master recordings and from mechanical royalties, 
integrated record companies derive most of their revenues from the 
exploitation of their rights to distribute duplicate sound recordings. 
The industrial structure proposed for this area is a major revision of 
existing classifications; the purpose of this restructuring is to 
reflect the actual activity structure of the sound recording industry, 
which is not well articulated in current classifications.
    The structure of the Broadcasting and Telecommunications subsector 
was decided upon in a previously signed preliminary agreement (Number 
2), but at the time, the sector in which it would be included had not 
been determined. The three countries have agreed to place it in the 
Information sector. The following is a summary of the previously signed 
agreement.
    The Broadcasting and Telecommunications subsector includes 
establishments providing point-to-point communications and the services 
related to that activity. The industry groups (Radio and Television 
Broadcasting, Cable Networks and Program Distribution, and 
Telecommunications) are based on differences in the methods of 
communication and in the nature of services provided. The Radio and 
Television Broadcasting industry group includes establishments that 
operate broadcasting studios and facilities for over the air or 
satellite delivery of radio and television programs of entertainment, 
news, talk, and the like. These establishments are often engaged in the 
production and purchase of programs and generating revenues from the 
sale of air time to advertisers, and from donations, subsidies, and/or 
the sale of programs. The Cable Network

[[Page 26605]]

and Program Distribution industry group includes two types of 
establishments. Cable Networks establishments operate studios and 
facilities for the broadcasting of programs that are typically narrow 
cast in nature (limited format such as news, sports, education, and 
youth-oriented programming). The services of these establishments are 
typically sold on a subscription or fee basis. Delivery of the programs 
to customers is handled by other establishments, in the Cable and 
Program Distribution industry, that operate cable systems, direct-to-
home satellite systems, or other similar systems. The 
Telecommunications industry group is primarily engaged in operating, 
maintaining, and/or providing access to facilities for the transmission 
of voice, data, text, sound, and full motion picture video between 
network termination points. A transmission facility may be based on a 
single technology or a combination of technologies.
    The Information Services and Data and Transaction Processing 
subsector is subdivided into two industry groups. The Information 
Services industry group includes establishments that provide, store, or 
provide access to information. The Data and Transaction Processing 
industry group includes establishments that process data and 
transactions.

Limitations and Constraints of the Classification

    The concept of an Information sector is new and for that reason its 
definition could be very broad or very narrow. For instance, it can be 
argued that establishments engaged in activities such as advertising, 
marketing research, public opinion polling and credit reporting should 
be included here since they are, in one way or another, engaged in 
producing, manipulating and distributing information and/or cultural 
products. These establishments, however, also share characteristics 
with establishments found in the Professional, Scientific and Technical 
Services subsector and it is proposed to classify them in that sector. 
Similarly, independent artists, writers, and performers could be 
classified here since they provide the creative input essential to the 
production of many of the industries found in this sector. However, it 
has been decided to classify all such establishments in a single 
industry in the Performing Arts, Spectator Sports, and Related 
Industries subsector.
    The Information sector is largely a restructuring of existing 
classifications. For example, many of the activities that are 
classified in Publishing and in Sound Recording Industries are 
currently classified in the Manufacturing sectors in the existing 
national classifications. As a result, the definition of existing broad 
aggregates such as manufacturing or business services have changed.
    The identification of new and emerging industries is one of the 
principle goals of the NAICS project, and in this case many such 
industries are introduced in the classification (the extent varies by 
country.) However, many users have expressed the wish that this goal be 
achieved while minimizing breaks in time series. These two objectives 
are often conflicting and the degree to which proposed NAICS industries 
relate to existing national classification systems varies from country 
to country. This issue is elaborated in the Changes to the National 
Classification section.

Relationship to ISIC

    Twenty-six of the 29 proposed NAICS industries are contained within 
Divisions 22, Publishing, Printing and Reproduction of Recorded Media; 
64, Post and Telecommunications; 72, Computer and Related Activities; 
and 92, Recreational, Cultural and Sporting Activities of the Current 
International Standard Industrial Classification of all Economic 
Activities (ISIC, Revision 3) of the United Nations. The following 
NAICS industries cannot be assigned to an ISIC division without being 
subdivided: Other Publishing; Radio Broadcasting; and Television 
Broadcasting. However, the discrepancies between these proposed NAICS 
industries and ISIC are minor and do not have a significant impact on 
the comparability of data. Accordingly, most of the NAICS Information 
sector can be retabulated to reach consistency at the two-digit level 
of ISIC.

Changes to the National Classification

    For Canada, the most fundamental change to the 1980 Canadian 
Standard Industrial Classification (CSIC) is the grouping in one sector 
of industries currently classified in several sectors. Publishing has 
been moved from Manufacturing (CSIC 28), broadcasting and 
telecommunication industries from Communication Industries (CSIC 48), 
film industries from Amusement and Recreational Service Industries 
(CSIC 96), record companies from Manufacturing (CSIC 39), libraries 
from Educational Services Industries (CSIC 85), and software publishing 
and data processing from Business Service Industries (CSIC 77).
    The current classification for traditional publishing separates 
establishments engaged in publishing only from those engaged in 
publishing and printing. In the proposed NAICS classification, these 
establishments are classified to five different 4-digit industries 
according to the type of publishing (newspaper, book, database, etc.) 
whether or not they are also engaged in printing activities. Software 
publishing, currently a component of the Computer Services industry 
(CSIC 7721), is now classified in this subsector.
    The classification of video wholesaling to the existing Motion 
Picture and Video Distribution class (CSIC 9612) is changed; video 
wholesaling is now assigned to the Wholesale Trade area. Establishments 
primarily engaged in videotaping are moving from the Motion Picture and 
Video Production industry (CSIC 9611) to the NAICS class for 
Photography in the Management, Employment, Administrative and Support 
Services subsector. The three existing classes for motion picture and 
video exhibition (CSIC 9621, 9622, 9629) are collapsed into one NAICS 
class. Independent motion picture directors, currently classified to 
the Motion Picture and Video Production industry, are moving to the 
Performing Arts, Spectator Sports and Related Industries subsector of 
NAICS.
    Sound recording activities are now classified to a separate 
industry group in five newly created 4-digit industries. This is 
significantly different from the current practice of assigning these 
activities in different areas of the CSIC, the most important being 
wholesale trade and manufacturing.
    Other significant changes include the movement of libraries (part 
of CSIC 8541) and archives (part of CSIC 8551) from Educational Service 
Industries to this sector and of news syndicates (part of CSIC 7799), 
on-line information services (part of CSIC 7799) and data processing 
services (part of CSIC 7721) from the Business Services division to 
this sector.
    For Mexico, economic activities emanating from various CMAP sectors 
have been reclassified into the new Information sector. Editing and a 
combination of editing and printing were taken from the Manufacturing 
Sector, group CMAP 3420, corresponding to printing and editing. From 
group CMAP 3832, Manufacture and/or Assembly of Electronic Radio, 
Television, Communications and Medical Equipment, recording, editing 
and record reproducing studios were

[[Page 26606]]

transferred when these studios are integrated in this manner.
    The following classes were reclassified from the current 
Transportation and Communications Sector; CMAP classes 720003, 
Telephone Services; 720004, Public Telephone Services; 720005, 
Telegraph Services; and 720006, Other Telecommunications Services, 
except for facsimile services in the latter category, found under the 
Organization Services subsector, together with Business Centers.
    Services related to cinematography, radio and television were taken 
from the current Recreation, Cultural and Sports Services (CMAP classes 
941101, 941102, 941103, 941104, 941105, 941201, 941202 and 941203), 
both from the public and private sectors. Library services, currently 
classified by the CMAP together with museums, botanical gardens and the 
like, under CMAP branches 9421 and 9422, were also reclassified under 
this new sector.
    Finally, from the current CMAP 9510 branch, Provision of 
Professional, Technical and Specialized Services, the following CMAP 
classes were taken: from CMAP 951004, Systems Analysis and Information 
Processing Services, the corresponding parts to software editing 
services, on-line consulting services and rented computer time; CMAP 
951014, News Agencies' Services; and CMAP 951023, Other Professional, 
Technical and Specialized Services previously mentioned, pre-recorded 
telephone information services.
    For the United States, the Information sector is a new grouping and 
includes industries that were included in different divisions of the 
1987 SIC. The concepts underlying the creation of this sector and the 
industry descriptions address the increasing use of electronic means of 
dissemination that is not considered in the 1987 SIC.
    The Newspaper, Periodical, Book and Database Publishing industry 
group is currently included in the Manufacturing division of the 1987 
SIC (Industry Groups 271, 272, 273, 274 and part of 1987 SIC 2771). The 
industries included in the NAICS Information sector are those involved 
in publishing, or publishing and printing combined. Establishments 
engaged in printing only remain in the Manufacturing sector of NAICS.
    The Software Publishing industry is part of the 1987 SIC 7372, 
Prepackaged Software, in the 1987 SIC in the Business Services major 
group. The reproduction of prepackaged software only is included in the 
Computer and Electronic Components subsector in the NAICS Manufacturing 
sector.
    The Motion Picture and Video Industries industry group includes 
industries classified in the Motion Pictures major group of the 1987 
SIC. Parts of 1987 SIC 7819, Services Allied Motion Pictures, were 
reclassified in other sectors to create more homogeneous, production 
based categories. A new industry is created for Teleproduction and 
Other Post-production Services from 1987 SIC 7819, Services Allied to 
Motion Picture Production, and the remainder of 1987 SIC 7819 was 
combined with 1987 SIC 7829, Services Allied to Motion Picture 
Distribution.
    Five new industries are created within the Sound Recording 
Industries industry group. None of these industries exist in the 1987 
SIC and, in most instances, there is no indication in the 1987 SIC 
Manual of the appropriate industry in which they should be included. 
Because of this, it is difficult to predict the impact of this change, 
though in most instances it is expected to have a minor effect on 
existing time series.
    Changes to the U.S. SIC system for the Broadcasting and 
Telecommunications industries subsector were addressed in a previous 
NAICS agreement (Agreement number 2).
    The Information Services and Data and Transaction Processing 
subsector includes a number of information service-related industries. 
The News Syndicates and Libraries and Archives industries correspond to 
1987 SIC 7383, News Syndicates, and 8231, Libraries. News Syndicates 
were previously located in the Business Services major group and 
Libraries were located in the Educational Services major group. The 
Other Information Services industry primarily includes establishments 
classified in 1987 SIC 7375, Information Retrieval Services. U.S. 
national detail preserves this industry and provides a residual class 
for all other information services. The Data and Transaction Processing 
industry corresponds to 1987 SIC 7374, Computer Processing and Data 
Preparation and Processing Services. Both Information Retrieval 
Services and Computer Processing and Data Preparation and Processing 
Services were located in the Business Services major group.

Achievement of Objectives

    The classification meets the objectives for the North American 
Industry Classification System. It is comprised of industries that 
group establishments with similar production processes, that is, it 
applies the production-oriented economic concept. The hierarchical 
structure also follows the production concept.
    The classification achieves comparability for the three 
participating countries. All countries agree on the definitions of the 
industries. The classification improves comparability with other 
countries. Based on existing data, each country expects to be able to 
publish data regularly, or in the near future, at the 4-digit NAICS 
level of this structure.
    Other objectives of the NAICS project have also been met. The 
classification meets the objectives of an industry classification. In 
an effort to identify high technology and new emerging industries, new 
industries in the Sound Recording industry group and the Broadcasting 
and Telecommunications subsector have been identified. The 
classifications are homogeneous and account for most of the activities 
that define them. In addition, they are economically significant.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the NAICS industry sector 
presented in Part VIII, Section A--Attachment 1, contain less detail 
than is currently in the U.S. SIC system, and less detail than is 
required to meet important analytical requirements in the U.S. The 
three country agreement on NAICS envisions that each country may 
develop national detailed industries below the NAICS industry level, so 
long as the national detail can be aggregated to the NAICS 
classification, thus assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
industry sector covered in Part VIII of this notice. For cases where no 
5-digit detail is shown, the ECPC is proposing that the NAICS 4-digit 
industries will also represent the most detailed U.S. industries.

[[Page 26607]]



                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Publishing                                                                                 
XXX................    Newspaper, Periodical, Book                                                              
                        and Database Publishing:                                                                
XXXX...............     Newspaper Publishing......  E                    2711  Newspapers: Publishing, or       
                                                                                Publishing and Printing.        
XXXX...............     Periodical Publishing.....  E                    2721  Periodicals: Publishing, or      
                                                                                Publishing and Printing.        
XXXX...............     Book Publishing...........  E                    2731  Books: Publishing, or Publishing 
                                                                                and Printing.                   
XXXX...............     Database Publishing.......  N                   *2741  Miscellaneous Publishing         
                                                                                (database publishers).          
XXXX...............     Other Publishing:                                                                       
XXXXX..............      Greeting Card Publishing.  R                   *2771  Greeting Cards.                  
XXXXX..............      All Other Publishing.....  R                   *2741  Miscellaneous Publishing (except 
                                                                                database publishing).           
XXX................    Software Publishing:                                                                     
XXXX...............     Software Publishing.......  R                   *7372  Prepackaged Software.            
XX.................  Motion Picture and Sound                                                                   
                      Recording:                                                                                
XXX................    Motion Picture and Video                                                                 
                        Industries:                                                                             
XXXX...............     Motion Picture and Video    E                    7812  Motion Picture and Video Tape    
                         Production.                                            Production.                     
XXXX...............     Motion Picture and Video    E                   *7822  Motion Picture and Video Tape    
                         Distribution.                                          Distribution (except video tape 
                                                                                and cassette wholesalers).      
XXXX...............     Teleproduction and Other    N                   *7819  Services Allied to Motion Picture
                         Post-Production Services.                              Production (teleproduction and  
                                                                                post-production services).      
XXXX...............     Motion Picture and Video                                                                
                         Exhibition:                                                                            
XXXXX..............      Motion Picture Theaters,   E                    7832  Motion Picture Theaters, Except  
                          except Drive-Ins.                                     Drive-In.                       
XXXXX..............      Drive-In Motion Picture    E                    7833  Drive-In Motion Picture Theaters.
                          Theaters.                                                                             
XXXX...............     Other Motion Picture and    N                   *7819  Services Allied to Motion Picture
                         Video Industries.                                      Production (except casting      
                                                                                bureaus, wardrobe and equipment 
                                                                                rental, talent payment services,
                                                                                teleproduction and other post-  
                                                                                production services).           
                                                                         7829  Services Allied to Motion Picture
                                                                                Distribution.                   
XXX................    Sound Recording Industries:                                                              
XXXX...............     Record Production           N                   *6794  Patent Owners and Lessors (music 
                         Companies.                                             royalties, sheet and record).   
XXXX...............     Integrated Record           N                   *3652  Phonograph Records and           
                         Companies.                                             Prerecorded Audio Tapes and     
                                                                                Disks (integrated record        
                                                                                companies, except duplication   
                                                                                only).                          
XXXX...............     Music Publishing..........  N                   *6794  Patent Owners and Lessors (music 
                                                                                publishing).                    
XXXX...............     Sound Recording Studios...  N                   *7389  Business Services, NEC (recording
                                                                                studios).                       
XXXX...............     Other Sound Recording       N                   *7389  Business Services, NEC (audio    
                         Industries.                                            taping services).               
                                                                        *7922  Theatrical Producers (Except     
                                                                                Motion Picture) and             
                                                                                Miscellaneous Theatrical        
                                                                                Services (producers of radio    
                                                                                programs).                      
XX.................  Broadcasting and                                                                           
                      Telecommunications:                                                                       
XXX................    Radio and Television                                                                     
                        Broadcasting:                                                                           
XXXX...............     Radio Broadcasting:                                                                     
XXXXX..............      Radio Networks...........  N                   *4832  Radio Broadcasting Stations      
                                                                                (networks).                     
XXXXX..............      Radio Stations...........  N                   *4832  Radio Broadcasting Stations      
                                                                                (except networks).              
XXXX...............     Television Broadcasting...  E                    4833  Television Broadcasting Stations.
XXX................    Cable Networks and Program                                                               
                        Distribution:                                                                           
XXXX...............     Cable Networks............  N                   *4841  Cable and Other Pay Television   
                                                                                Services (cable networks).      
XXXX...............     Cable and Program           N                   *4841  Cable and Other Pay Television   
                         Distribution.                                          Services (except cable          
                                                                                networks).                      
XXX................    Telecommunications:                                                                      
XXXX...............     Wired Telecommunications    N                   *4813  Telephone Communications, Except 
                         Carriers.                                              Radiotelephone (except          
                                                                                resellers).                     
                                                                         4822  Telegraph and Other Message      
                                                                                Communications.                 
XXXX...............     Wireless                                                                                
                         Telecommunications                                                                     
                         Carriers, Except                                                                       
                         Satellite:                                                                             
XXXXX..............      Paging...................  N                   *4812  Radiotelephone Communications    
                                                                                (paging carriers).              
XXXXX..............      Cellular and Other         N                   *4812  Radiotelephone Communications    
                          Wireless                                              (cellular carriers).            
                          Telecommunications.                                                                   
                                                                        *4899  Communications Services, NEC     
                                                                                (radio dispatch).               
XXXX...............     Telecommunications          N                   *4812  Radiotelephone Communications    
                         Resellers.                                             (paging and cellular resellers).
                                                                        *4813  Telephone Communications, Except 
                                                                                Radiotelephone (resellers).     
XXXX...............     Satellite                   N                   *4899  Communications Services, NEC     
                         Telecommunications.                                    (Satellite communications).     
XXXX...............     Other Telecommunications..  N                   *4899  Communications Services, NEC     
                                                                                (except radio dispatch,         
                                                                                satellite communications).      
XX.................  Information Services and Data                                                              
                      and Transaction Processing:                                                               
XXX................    Information Services:                                                                    
XXXX...............     News Syndicates...........  E                    7383  News Syndicates.                 
XXXX...............     Libraries and Archives....  E                    8231  Libraries.                       
XXXX...............     Other Information                                                                       
                         Services:                                                                              
XXXXX..............      On-Line Information        E                    7375  Information Retrieval Services.  
                          Services.                                                                             

[[Page 26608]]

                                                                                                                
XXXXX..............      All Other Information      N                   *8999  Services, NEC (miscellaneous     
                          Services.                                             information providers).         
XXX................    Data and Transaction                                                                     
                        Processing:                                                                             
XXXX...............     Data and Transaction        E                    7374  Computer Processing and Data     
                         Processing.                                            Preparation and Processing      
                                                                                Services.                       
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and 
  * means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                               



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
2711....................................  Newspapers: Publishing, or        Newspaper Publishing.               
                                           Publishing and Printing.                                             
2721....................................  Periodicals: Publishing, or       Periodical Publishing.              
                                           Publishing and Printing.                                             
2731....................................  Books: Publishing, or Publishing  Book Publishing.                    
                                           and Printing.                                                        
2741@...................................  Miscellaneous Publishing:         ....................................
                                            Database Publishing...........  Database Publishing.                
                                            Miscellaneous Publishing,       All Other Publishing.               
                                             Except Database.                                                   
2771....................................  Greeting Cards..................  Greeting Card Publishing.           
4812@...................................  Radiotelephone Communications:                                        
                                            Paging Carriers...............  Paging.                             
                                            Cellular Carriers.............  Cellular and Other Wireless         
                                                                             Telecommunications                 
                                          Paging and Cellular Resellers...  Telecommunications Resellers (pt.). 
4813@...................................  Telephone Communications, Except                                      
                                           Radiotelephone:                                                      
                                            Except Resellers..............  Wired Telecommunications Carriers   
                                                                             (pt.).                             
                                            Resellers.....................  Telecommunications Resellers (pt.). 
4822@...................................  Telegraph and Other Message       Wired Telecommunications Carriers   
                                           Communications.                   (pt.).                             
4832....................................  Radio Broadcasting Stations:                                          
                                            Networks......................  Radio Networks.                     
                                            Stations......................  Radio Stations.                     
4833....................................  Television Broadcasting Stations  Television Broadcasting.            
4841....................................  Cable and Other Pay Television                                        
                                           Services:                                                            
                                            Cable Networks................  Cable Networks.                     
                                            Except Cable Networks.........  Cable and Program Distribution.     
4899....................................  Communications Services, Not                                          
                                           Elsewhere Classified:                                                
                                            Radio Dispatch................  Cellular and Other Wireless         
                                                                             Telecommunications (pt.).          
                                            Satellite Communications......  Satellite Telecommunications.       
                                            Except Radio Dispatch and       Other Telecommunications.           
                                             Satellite.                                                         
                                            Communications                                                      
7372....................................  Prepackaged Software:                                                 
                                            Software Publishing...........  Software Publishing.                
                                            Reproduction of Software......  Reproduction of Software.           
7374....................................  Computer Processing and Data      Data and Transaction Processing.    
                                           Preparation and Processing                                           
                                           Services.                                                            
7375....................................  Information Retrieval Services..  On-Line Information Services.       
7383....................................  News Syndicates.................  New Syndicates.                     
7389....................................  Business Services, Not Elsewhere                                      
                                           Classified:                                                          
                                            Sound Recording Studios.......  Sound Recording Studios.            
                                            Audio Taping Services.........  Other Sound Recording Industries    
                                                                             (pt.).                             
7812....................................  Motion Picture and Video Tape     Motion Picture and Video Production.
                                           Production.                                                          
7819....................................  Services Allied to Motion                                             
                                           Picture Production:                                                  
                                            Teleproduction and Post-        Teleproduction and Other Post-      
                                             Production Services.            Production Services.               
                                            Casting Bureaus...............  Employment Agencies (pt.) (Included 
                                                                             in Management, Employment,         
                                                                             Administrative and Support Services
                                                                             subsector).                        
                                            Wardrobe Rental (Motion         Rental and Leasing of Formal Wear   
                                             Pictures).                      and Costumes (pt.) (Included in    
                                                                             Rental and Leasing subsector).     
                                            Rental of Motion Picture        Rental and Leasing of Machinery and 
                                             Equipment.                      Equipment (pt.) (Included in Rental
                                                                             and Leasing subsector).            
                                            Talent Payment Services.......  Payroll Services (Included in       
                                                                             Professional Scientific and        
                                                                             Technical Services subsector).     
                                            Except Casting Bureaus,         Other Motion Picture and Video      
                                             Wardrobe and Equipment          Services (pt.).                    
                                             Rental, Teleproduction and                                         
                                             Other Post-Production                                              
                                             Services.                                                          
7822....................................  Motion Picture and Video Tape                                         
                                           Distribution:                                                        
                                            Distribution, Except Video      Motion Picture and Video            
                                             Tape and Cassette Wholesalers.  Distribution.                      
                                            Video Tape and Cassette         (Included in Wholesale Trade        
                                             Wholesalers.                    Sector).                           
7829....................................  Services Allied to Motion         Other Motion Picture and Video      
                                           Picture Distribution.             Services (pt.).                    

[[Page 26609]]

                                                                                                                
7832....................................  Motion Picture Theaters, Except   Motion Picture Theaters, Except     
                                           Drive-Ins.                        Drive-In.                          
7833....................................  Drive-In Motion Picture Theaters  Drive-In Motion Picture Theaters.   
7922@...................................  Theatrical Producers (Except                                          
                                           Motion Picture) and                                                  
                                           Miscellaneous Theatrical                                             
                                           Services:                                                            
                                            Producers of Radio Programs:..  Other Sound Recording Industries    
                                                                             (pt.).                             
8231....................................  Libraries.......................  Libraries and Archives.             
6794@...................................  Patent Owners and Lessors:                                            
                                            Record Production Companies...  Record Production Companies.        
                                            Music Publishing..............  Music Publishing.                   
3652@...................................  Phonograph Records and                                                
                                           Prerecorded Audio Tapes and                                          
                                           Disk.                                                                
                                            Integrated Record Companies,    Integrated Record Companies.        
                                           Except Duplication Only.                                             
8999@...................................  Services, Not Elsewhere                                               
                                           Classified.                                                          
                                            Miscellaneous Information       All Other Information Services.     
                                             Providers.                                                         
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means time series break has been created that is greater than 3%  
  of the 1992 revenues for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere Classified.    
Note: Detail for SIC's 7389, 7922, 6794, 3652 and 8999 only represent those parts applicable to the Information 
  Sector.                                                                                                       



Description of Changes to the U.S. System

    1. One new industry was created in the Publishing subsector.
    Database Publishing was created from part of 1987 SIC 2741, 
Miscellaneous Publishing. It was established because of the growth of 
this type of publishing and is supported by the production process.
    All Other Publishing was revised from part of 1987 SIC 2741, 
Miscellaneous Publishing, by the removal of database publishing.
    Software Publishing was created from part of 1987 SIC 7372 
Prepackaged Software. Reproduction of software only is included in the 
Computer and Electronic Component Manufacturing subsector.
    Four of the five 1987 publishing industries remained largely 
unchanged and time series will not be significantly affected.
    2. Seven new industries were created in the Motion Picture and 
Sound Recording subsector. The Teleproduction and Other Post-Production 
Services industry was created from part of 1987 SIC 7819, Services 
Allied to Motion Picture Production, based upon a request by the 
industry and is supported by production based principles.
    Other Motion Picture and Video Industries was created from part of 
1987 SIC 7819, Services Allied to Motion Picture Production, and 1987 
SIC 7829, Services Allied to Motion Picture Distribution, to form a 
residual industry containing establishments that provide specialized 
services in support of the motion picture production and distribution 
industries.
    The Record Production Companies industry was created from part of 
1987 SIC 6794, Patent Owners and Lessors. This industry was created to 
include establishments that perform a specialized role in searching out 
and contracting musical artists. This industry is supported by the 
production process.
    The Integrated Record Companies industry was created from part of 
1987 SIC 3652, Phonograph Records and Prerecorded Audio Tapes and 
Disks. This industry was established to include establishments that 
reproduce and distribute musical recordings. This industry is supported 
by the production process.
    The Music Publishing industry was created from part of 1987 SIC 
6794, Patent Owners and Lessors, to recognize the specialized role it 
has in promoting the use of musical works in recordings, film, 
television, and other media. Music publishers are primarily engaged in 
owning the copyright of musical compositions, and administering the 
exploitation of the bundle of rights that flow from the ownership of 
this copyright. The industry is supported by production based 
principles.
    The Sound Recording Studios industry was created from part of 1987 
SIC 7389, Business Services, Not Elsewhere Classified. This industry 
was established to include establishments that perform a specialized 
role in providing facilities and expertise in recording performances, 
and is supported by production based principles.
    Other Sound Recording Services was created from part of 1987 SIC 
7922, Theatrical Producers (Except Motion Picture) and Miscellaneous 
Theatrical Services, and part of 1987 SIC 7389, Business Services, NEC. 
This industry was created as a residual to include establishments that 
provide specialized audio and sound related services. It is supported 
by production based principles.
    3. There are 11 new industries in the Broadcasting and 
Telecommunications subsector. These were published in the Federal 
Register on July 26, 1995. Please refer to page 38448 for details.
    4. There is one new industry in the Information Services and Data 
and Transaction Processing subsector. The All Other Information 
Services industry was created to include a variety of information 
service related establishments not included in other industries in this 
sector. While this class is expected to be very small at the present 
time, it represents a residual industry that may contain new types of 
establishments in the future as more advanced information technologies 
emerge and grow. The U.S. national On-Line Information Services 
industry (1987 SIC 7375, Information Retrieval Services) includes 
establishments that provide access to, and distribution of, information 
that has been stored electronically for retrieval.

Part IX--Proposed New Industry Structure for Wood Product 
Manufacturing, Except Furniture

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 19

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

Wood Product Manufacturing, Except Furniture


[[Page 26610]]


    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on September 27, 1995-September 29, 1995 in 
Mexico City, Mexico.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    9/29/95
Mexico..............................  /S/ Enrique Ordaz......    9/29/95
United States.......................  /S/ Jack E. Triplett...    9/29/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Wood Product Manufacturing, Except Furniture
XXX  Sawmill Product and Wood Preservation Manufacturing
XXXX  Sawmill Product and Wood Preservation Manufacturing
XXX  Laminated Wood Product Manufacturing
XXXX  Laminated Wood Product Manufacturing
XXX  Other Wood Product Manufacturing
XXXX  Wood Construction Product Manufacturing
XXXX  Wood Container and Package Product Manufacturing
XXXX  All Other Wood Product Manufacturing

Attachment 2--North American Industry Classification System

    Draft Classification for:

Wood Product Manufacturing, Except Furniture

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industry classification for these 
industries.
    The draft classification provides for the subsector Wood Product 
Manufacturing, Except Furniture. This subsector is further subdivided 
into three industry groups and five industries.

A General Outline

    The Wood Product Manufacturing, Except Furniture industries produce 
wood products such as lumber, hardwood and softwood plywood and 
veneers, wood containers, wood flooring and trusses, mobile homes, and 
prefabricated wood buildings.
    The production processes of the Wood Product Manufacturing, Except 
Furniture industries include sawing, planing, shaping, laminating and 
sometimes assembly of wood, starting from logs that are cut into bolts, 
planks, or boards that then may be further cut, or shaped by lathes or 
other shaping tools. The boards or other shapes also may be 
subsequently planed or smoothed, and assembled into finished products 
such as wooden containers.
    The Sawmill Product and Wood Preservation Manufacturing industries 
include establishments whose production process begins with wooden logs 
that are then transformed into boards, poles, ties, and beams. 
Establishments that process wood to prevent rotting by impregnation 
with creosote or other chemical compounds also are included in this 
industry group.
    The Laminated Wood Product Manufacturing industries include 
establishments that produce hardwood and softwood plywood, particle 
board, oriented strand board, and glue laminated wood products, 
including plywood covered with other materials such as plastic and 
metals. Plywood and particle board products that are included in this 
industry group are generally produced by a process involving high-
pressure compression and through the use of glues either in combination 
or separately.
    There are three NAICS industries in the Other Wood Product 
Manufacturing industry group. The Wood Construction Product 
Manufacturing industry includes establishments that manufacture doors, 
windows, closets, wall coverings, parquet flooring, staves, partitions, 
and general products for woodwork. Excluded from this industry is the 
manufacture of wooden houses and furniture.
    Establishments in the Wood Container and Package Product 
Manufacturing industries manufacture products for packing and 
packaging, such as pallets, barrels, casks, crates, vats, containers, 
jewelry boxes, and decorative and ornamental boxes.
    Finally, establishments in the All Other Wood Product Manufacturing 
industries produce cork and cork products, manufactured wooden houses, 
plaiting materials, such as wicker, reeds, etc., turned items, etc.

Limitations and Constraints of the Classification

    Developing an industry classification for Wood Product 
Manufacturing, Except Furniture industries was difficult for the three 
countries. First, the wood industry in Mexico is small and relatively 
unspecialized. Therefore the NAICS industries are quite aggregated to 
ensure that information can be published in all three countries. For 
example, in Mexico the treatment and preservation of wood generally 
takes place at sawmills as part of the production of poles and ties. 
There are few establishments where it is the primary activity. 
Therefore, NAICS combines these activities into one industry.
    Another factor that limited the formulation of classes in this 
subsector are differences in climate among the three countries. The 
climate has led to higher levels of development and specialization in 
the wood industry in the United States and Canada, particularly with 
regard to construction and construction materials. Mexico does not grow 
hardwood trees. Each country may, however, publish additional national 
industries that comprise subdivisions of NAICS industries to present 
data for activities that are nationally significant.

Relationship to ISIC

    Most four-digit NAICS industries in this subsector are contained 
within Division 20, Manufacture of Wood Products, of the current 
International Standard Industrial Classification of all Economic 
Activities (ISIC, Revision 3) of the United Nations. The following 
NAICS industry cannot be assigned to an ISIC Division: All Other Wood 
Product Manufacturing. This industry includes the manufacture of wooden 
heels that are classified in ISIC Division 19, Manufacture of Leather, 
Leather Products, and Footwear. However, this is a very small activity 
and should not significantly affect the comparability between this 
NAICS subsector and ISIC Division 20.

Changes to the National Classifications

    The changes to the current national classifications were varied in 
nature. In some cases, changes applied to all three countries while in 
others the changes affected only one or two of the countries.
    For Canada, the major structural change entailed moving the 
production of building board (CSIC 2714) to the Wood Product 
Manufacturing, Except Furniture subsector both to achieve international 
comparability and to better meet the production process principle. CSIC 
2542, Kitchen Cabinet and Bathroom Vanities, was moved from the 
Canadian Wood major group to better adhere to the production process, 
and ultimately to achieve three country

[[Page 26611]]

comparability. In addition, sawmills were redefined to exclude wood and 
wood products made from purchased lumber. Wooden coffins were moved 
from this subsector to Miscellaneous Manufacturing because 
establishments tend to make this product from plastic and metal as well 
as wood. Other structural changes for Canada, such as the movement of 
the manufacture of wooden cigar cases and jewelry boxes, wooden boot 
and shoe heels, billboards, and other wooden signs and cork gaskets, 
etc. are minor.
    For Mexico, the major change is the movement of wood furniture from 
CMAP Subsector, Wood and Wood Products, Including Furniture, to the new 
NAICS Furniture Manufacturing subsector. In the current Mexican 
structure, the manufacture of furniture is classified in groups 
allocated to the type of input material, that is, wood, metal, plastic, 
etc. Furniture is more and more being made of multiple materials and 
design is an important component of its production process. Thus, a 
separate NAICS subsector was created for the manufacture of furniture 
from all types of material.
    For the United States, the major change is the movement of 1987 SIC 
2411, Logging, from the Lumber and Wood Products, Except Furniture 
major group to the Forestry and Logging subsector. The move was made to 
better meet production principles, and to match Canada's and Mexico's 
classification of this activity. Another important structural change 
was to move the manufacture of 1987 SIC 2434, Wood Kitchen Cabinets, 
from this group to the NAICS Furniture Manufacturing subsector for 
production principles. The manufacture of wooden chair frames was also 
moved from here to the Furniture Manufacturing subsector to reach 
international comparability. Other structural changes include the 
movement of cork gaskets, wood heels, wood signs, and burnt wood 
articles to this group from various other manufacturing subsectors.

Achievement of Objectives

    The classification meets the objectives for the North American 
Industry Classification System (NAICS). It includes industries that 
group establishments with similar production processes, that is, it 
applies the production-oriented economic concept. The hierarchical 
structure of the classification also follows the production concept.
    The industries have high specialization ratios, and they are 
economically significant. The NAICS industries are large aggregations, 
but this was necessitated by the considerations discussed above under 
Limitations and Constraints of the Classification. The classification 
is suitable for sampling, data-publishing, and other aspects of survey 
operations. Finally, while disruptions to time series exist, they are 
not generally significant. The statistical agencies can develop 
statistical ``links,'' to enable the re-tabulation of time series on 
the NAICS classification structure.
    The classification achieves comparability for the three 
participating countries. Based on existing data, all three countries 
expect to be able to publish data regularly at the industry (4-digit) 
level of the structure. All countries agree on the detailed definitions 
of the industries.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the NAICS industry subsector 
presented in Part IX, Section A--Attachment 1, contain less detail than 
is currently in the U.S. SIC system, and less detail than is required 
to meet important analytical requirements in the U.S. The three country 
agreement on NAICS envisions that each country may develop national 
detailed industries below the NAICS industry level, so long as the 
national detail can be aggregated to the NAICS classification, thus 
assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
industry subsector covered in Part IX of this notice. For cases where 
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Wood Product Manufacturing,                                                                
                      Except Furniture:                                                                         
XXX................    Sawmill Product and Wood                                                                 
                        Preservation                                                                            
                        Manufacturing:                                                                          
XXXX...............     Sawmill Product and Wood                                                                
                         Preservation                                                                           
                         Manufacturing:                                                                         
XXXXX..............      Sawmills and Planing       R                    2421  Sawmills and Planing Mills,      
                          Mills.                                                General.                        
                                                                         2429  Special Product Sawmills, NEC.   
XXXXX..............      Wood Preserving..........  E                    2491  Wood Preserving.                 
XXX................    Laminated Wood Product       ................           .................................
                        Manufacturing:                                                                          
XXXX...............     Laminated Wood Product      ................           .................................
                         Manufacturing:                                                                         
XXXXX..............      Hardwood Veneer and        E                    2435  Hardwood Veneer and Plywood.     
                          Plywood Manufacturing.                                                                
XXXXX..............      Softwood Veneer and        E                    2436  Softwood Veneer and Plywood.     
                          Plywood Manufacturing.                                                                
XXXXX..............      Structural Wood Member     R                   *2439  Structural Wood Members, NEC     
                          Manufacturing, Except                                 (except trusses).               
                          Trusses.                                                                              
XXXXX..............      Reconstituted Wood         E                    2493  Reconstituted Wood Products.     
                          Product Manufacturing.                                                                
XXX................    Other Wood Product           ................           .................................
                        Manufacturing:                                                                          
XXXX...............     Wood Construction Product                                                               
                         Manufacturing:                                                                         
XXXXX..............      Hardwood Dimension Mills.  R                   *2426  Hardwood Dimension and Flooring  
                                                                                Mills (except flooring).        
XXXXX..............      Wood Window and Door       N                   *2431  Millwork.                        
                          Manufacturing.                                                                        
XXXXX..............      Other Millwork             R                   *2426  Hardwood Dimension and Flooring  
                          Manufacturing, Including                              Mills (hardwood flooring).      
                          Flooring.                                                                             
                                                                        *2431  Millwork.                        
XXXXX..............      Truss Manufacturing......  N                   *2439  Structural Wood Members, NEC     
                                                                                (trusses).                      

[[Page 26612]]

                                                                                                                
XXXX...............     Wood Container and Package                                                              
                         Product Manufacturing.                                                                 
XXXXX..............      Wood Container and         N                    2441  Nailed and Lock Corner Wood Boxes
                          Package Product                                       and Shook.                      
                          Manufacturing.                                                                        
                                                    ................     2448  Wood Pallets and Skids.          
                                                                         2449  Wood Containers, NEC.            
                                                                        *2499  Wood Products, NEC (wood tubs and
                                                                                vats, jewelry and cigar boxes). 
XXXX...............     All Other Wood Product                                                                  
                         Manufacturing:                                                                         
XXXXX..............      Manufactured Homes         E                    2451  Mobile Homes.                    
                          (Mobile) Manufacturing.                                                               
XXXXX..............      Prefabricated Wood         E                    2452  Prefabricated Wood Buildings and 
                          Building and Component                                Components.                     
                          Manufacturing.                                                                        
XXXXX..............      Other Wood Product         R                   *2426  Hardwood Dimension and Flooring  
                          Manufacturing.                                        Mills (wood stock and turnings).
                                                                               .................................
                                                                        *2499  Wood Products, NEC (other wood   
                                                                                products).                      
                                                                        *3053  Gaskets, Packing, and Sealing    
                                                                                Devices (cork gaskets,          
                                                                                packaging, and sealing devices).
                                                                        *3131  Boot and Shoe Cut Stock and      
                                                                                Findings (wood heels).          
                                                                        *3993  Signs and Advertising Specialties
                                                                                (wood signs).                   
----------------------------------------------------------------------------------------------------------------
The definitions of status are as follows: E--existing industry; N--new industry; R--revised industry; and *     
  means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                                 



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
2411....................................  Logging.........................  Logging Operations (Included in     
                                                                             Support Activities for Forestry    
                                                                             subsector).                        
2421@...................................  Sawmills and Planing Mills,       Sawmills and Planing Mills (pt).    
                                           General.                                                             
2426@...................................  Hardwood Dimension and Flooring                                       
                                           Mills:                                                               
                                            Hardwood Flooring.............  Millwork Manufacturing, Including   
                                                                             Flooring (pt)                      
                                            Wood Stock and Turnings.......  Other Wood Product Manufacturing    
                                                                             (pt).                              
                                            Office Chair Frames...........  Wood Office Furniture Manufacturing 
                                                                             (pt) (Included in Furniture        
                                                                             Manufacturing subsector).          
                                            Chair Frames for                Wood Household Furniture            
                                             Nonupholstered Furniture        Manufacturing, Except Upholstered  
                                             (Household).                    (pt) (Included in Furniture        
                                                                             Manufacturing subsector).          
                                            Chair Frames for Upholstered    Upholstered Wood Household Furniture
                                             Furniture (Household).          Manufacturing (pt) (Included in    
                                                                             Furniture Manufacturing subsector).
                                            Other Hardwood Dimension        Hardwood Dimension Mills.           
                                             Except Flooring.                                                   
2429@...................................  Special Product Sawmills NEC....  Sawmills and Planing Mills (pt).    
2431@...................................  Millwork:                                                             
                                            Wood Window and Door            Other Millwork Manufacturing,       
                                             Manufacturing.                  Including Flooring (pt).           
2434....................................  Wood Kitchen Cabinets...........  Wood Kitchen Cabinet Manufacturing  
                                                                             (Included in Furniture             
                                                                             Manufacturing subsector).          
2435....................................  Hardwood Veneer and Plywood.....  Hardwood Veneer and Plywood         
                                                                             Manufacturing                      
2436....................................  Softwood Veneer and Plywood.....  Softwood Veneer and Plywood         
                                                                             Manufacturing                      
2439@...................................  Structural Wood Members, NEC:                                         
                                            Except Trusses................  Structural Wood Member              
                                                                             Manufacturing, Except Trusses.     
                                            Trusses.......................  Truss Manufacturing.                
2441....................................  Nailed and Lock Corner Wood       Wood Containers and Package Product 
                                           Boxes and Shook.                  Manufacturing (pt).                
2448....................................  Wood Pallets and Skids..........  Wood Containers and Package Product 
                                                                             Manufacturing (pt).                
2449....................................  Wood Containers, NEC............  Wood Containers and Package Product 
                                                                             Manufacturing (pt).                
2451....................................  Mobile Homes....................  Manufactured Homes, (Mobile         
                                                                             Manufacturing                      
2452....................................  Prefabricated Wood Buildings and  Prefabricated Wood Building and     
                                           Components.                       Component Manufacturing.           
2491....................................  Wood Preserving.................  Wood Preserving.                    
2493....................................  Reconstituted Wood Products.....  Reconstituted Wood Product          
                                                                             Manufacturing.                     
2499....................................  Wood Products, NEC:                                                   
                                            Wood Tubs and Vats, Jewelry     Other Wood Container Manufacturing  
                                             and Cigar Boxes.                (pt).                              
                                            Wood Laundry Hampers..........  Household Wood Furniture            
                                                                             Manufacturing, Except Upholstered  
                                                                             (pt) (Included in Furniture        
                                                                             Manufacturing subsector).          
                                            Laundry Hampers Made from       Other Furniture Manufacturing (pt)  
                                             Rattan, Reed or Willow Mirror   (Included in Furniture             
                                             and Picture Frames.             Manufacturing subsector) All Other 
                                                                             Miscellaneous Manufacturing (pt)   
                                                                             (To Be Included in Miscellaneous   
                                                                             Manufacturing subsector).          
                                            Other Wood Products...........  Other Wood Product Manufacturing    
                                                                             (pt).                              
3053@...................................  Gaskets, Packing, and Sealing                                         
                                           Devices:                                                             
                                            Cork Gaskets, Packing, and      Other Wood Product Manufacturing    
                                             Sealing Devices.                (pt).                              

[[Page 26613]]

                                                                                                                
                                            Metal Gaskets, Packing, and     Other Miscellaneous Fabricated Metal
                                             Sealing Devices.                Product Manufacturing (pt)         
                                                                             (Included in Fabricated Metal      
                                                                             Product Manufacturing subsector).  
                                            Plastics Gaskets, Packing, and  All Other Plastic Product           
                                             Sealing Devices.                Manufacturing (pt) (Included in    
                                                                             Rubber and Plastic Product         
                                                                             Manufacturing subsector).          
                                            Rubber Gaskets, Packing, and    All Other Rubber Product            
                                             Sealing Devices.                Manufacturing (pt) (Included in    
                                                                             Rubber and Plastic Product         
                                                                             Manufacturing subsector).          
3131@...................................  Boot and Shoe Cut Stock and                                           
                                           Findings:                                                            
                                            Wood Heels....................  Other Wood Product Manufacturing    
                                                                             (pt).                              
                                            Metal Buckles.................  Fastener, Button, Needle, and Pin   
                                                                             Manufacturing (pt) (To be Included 
                                                                             in Miscellaneous Manufacturing     
                                                                             subsector).                        
                                            Other Footwear Cut Stock......  Miscellaneous Leather and Allied    
                                                                             Product Manufacturing (pt)         
                                                                             (Included in Leather and Allied    
                                                                             Product Manufacturing subsector).  
3993@...................................  Signs and Advertising                                                 
                                           Specialties:                                                         
                                            Wood Signs....................  Other Wood Product Manufacturing    
                                                                             (pt).                              
                                            Electric Signs................  Electric Sign Manufacturing         
                                                                             (Included in Electrical Equipment, 
                                                                             Appliance, and Component           
                                                                             Manufacturing subsector).          
                                            Metal Signs...................  All Other Fabricated Metal Product  
                                                                             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
                                            Flexographic Printing of        Commercial Flexographic Printing    
                                             Advertising Specialties.        (pt) (Included in Printing and     
                                                                             Related Support Activities         
                                                                             subsector).                        
                                            Gravure Printing of             Commercial Gravure Printing (pt)    
                                             Advertising Specialties.        (Included in Printing and Related  
                                                                             Support Activities subsector).     
                                            Lithographic Printing of        Commercial Lithographic Printing    
                                             Advertising Specialties.        (pt) (Included in Printing and     
                                                                             Related Support Activities         
                                                                             subsector).                        
                                            Screen Printing of Advertising  Commercial Screen Printing (pt)     
                                             Specialties.                    (Included in Printing and Related  
                                                                             Support Activities subsector).     
                                            Other Printing of Advertising   Other Commercial Printing (pt)      
                                             Specialties.                    (Included in Printing and Related  
                                                                             Support Activities subsector).     
3999....................................  Manufacturing Industries, NEC:                                        
                                            Burnt Wood Articles...........  Other Wood Product Manufacturing    
                                                                             (pt).                              
                                            Beauty and Barber Chairs......  Metal Office and Public Building    
                                                                             Furniture Manufacturing (pt)       
                                                                             (Included in Furniture             
                                                                             Manufacturing subsector).          
                                            Fur Bleaching, Currying,        Leather and Hide Tanning and        
                                             Scraping, Tanning and Dyeing.   Finishing Manufacturing (pt)       
                                                                             (Included in Leather and Allied    
                                                                             Product Manufacturing subsector).  
                                            Lamp Shades of Paper and        Other Lighting Equipment            
                                             Textile.                        Manufacturing (pt) (Included in    
                                                                             Electrical Equipment, Appliance,   
                                                                             and Component Manufacturing        
                                                                             subsector).                        
                                            Matches.......................  Other Miscellaneous Chemical Product
                                                                             Manufacturing (pt) (Included in    
                                                                             Chemical Product Manufacturing     
                                                                             subsector).                        
                                            Metal Products, Such As Combs,  All Other Fabricated Metal Product  
                                             Hair Curlers, Etc..             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
                                            Plastics Products, Such As      All Other Plastic Product           
                                             Combs, Hair Curlers, Etc..      Manufacturing (pt) (Included in    
                                                                             Rubber and Plastic Product         
                                                                             Manufacturing subsector).          
                                            Flexographic Printing Eyeglass  Commercial Flexographic Printing    
                                             Frames for the Trade.           (pt) (Included in Printing and     
                                                                             Related Support Activities         
                                                                             subsector).                        
                                            Gravure Printing Eyeglass       Commercial Gravure Printing (pt)    
                                             Frames for the Trade.           (Included in Printing and Related  
                                                                             Support Activities subsector).     
                                            Lithographic Printing Eyeglass  Commercial Lithographic Printing    
                                             Frames for the Trade.           (pt) (Included in Printing and     
                                                                             Related Support Activities         
                                                                             subsector).                        
                                            Screen Printing Eyeglass        Commercial Screen Printing (pt)     
                                             Frames for the Trade.           (Included in Printing and Related  
                                                                             Support Activities subsector).     
                                            Other Printing Eyeglass Frames  Other Commercial Printing (pt)      
                                             for the Trade.                  (Included in Printing and Related  
                                                                             Support Activities subsector).     
                                            Tape Measures.................  Hand and Edge Tool Manufacturing    
                                                                             (pt) (Included in Fabricated Metal 
                                                                             Product Manufacturing subsector).  
                                            Other.........................  All Other Miscellaneous             
                                                                             Manufacturing (pt) (To Be Included 
                                                                             in Miscellaneous Manufacturing     
                                                                             subsector).                        
----------------------------------------------------------------------------------------------------------------
 The abbreviation ``pt.'' means ``part of'', @ means time series break has been created that is greater than 3% 
  of the 1992 value of shipments for the 1987 SIC industry. The abbrevision NEC is used for Not Elsewhere       
  Classified.                                                                                                   



Description of Changes to the U.S. System

    A number of changes listed in this section were made for reasons of 
international comparability. Where one or more of the three North 
American countries had different definitions of an industry 
classification, adjustments to the definitions in one or more countries 
were required. In constructing NAICS, the three countries agreed to 
move, where change was required to attain

[[Page 26614]]

international comparability, in the direction of the country or 
countries whose existing classification definitions most closely 
corresponded to the production-oriented concept adopted for NAICS. 
Cases where the U.S. changed are listed below; other cases where Canada 
or Mexico moved toward the U.S. classification are not, of course, 
listed in this section.
    Two new industries were added to the 1997 industry structure for 
this industry subsector. Truss Manufacturing was created from part of 
1987 SIC 2439, Structural Wood Members, NEC. This change was in 
response to an industry proposal and also groups similar production 
processes together.
    Wood Window and Door Manufacturing was created from part of 1987 
SIC 2431, Millwork. The change was in response to an industry proposal, 
and conforms to production concepts.
    Two complete industries were transferred out of 1987 Major Group 
24, Lumber and Wood Products.
    1987 SIC 2411, Logging, was transferred into the Support Activities 
for Forestry subsector. This change was necessary to align the U.S. 
classification with Canada and Mexico, and because logging is not a 
production process that is similar to the manufacture of wood products 
from logs.
    1987 SIC 2484, Wood Kitchen Cabinets, was transferred into the 
Furniture Manufacturing subsector. This change reflects production 
processes that are essentially identical with those for furniture.
    Three activities were transferred out of 1987 Major Group Lumber 
and Wood Products.
    Wood chair frames and wood chair seats were transferred from 1987 
SIC 2426, Hardwood Dimension and Flooring Mills, to (1) Wood Office 
Furniture Manufacturing, (2) Wood Household Furniture Manufacturing, 
and (3) Upholstered Wood Household Furniture Manufacturing. This change 
was necessary to align the U.S. classification with Canada and Mexico.
    Laundry hampers were transferred from 1987 SIC 2499, Wood Products, 
NEC, and placed by component material in their respective industries 
within the Furniture Manufacturing subsector. This change was necessary 
to align the U.S. classification with Canada and Mexico.
    Mirror and picture frames were transferred 1987 SIC 2499, Wood 
Products, NEC, into the All Other Miscellaneous Manufacturing 
subsector. This change promotes international comparability with Canada 
and reflects similar production functions regardless of material.
    Four activities were transferred into the Wood Product 
Manufacturing, Except Furniture subsector.
    Cork gaskets were transferred 1987 SIC 3053, Gaskets, Packing and 
Sealing Devices, into Other Wood Product Manufacturing. This change 
promotes international comparability with Mexico, and reflects similar 
production functions regardless of material.
    Wood heels were transferred from 1987 SIC 3131, Boot and Shoe Cut 
Stock and Findings, into Other Wood Product Manufacturing. This change 
promotes international comparability with Mexico, while reflecting 
similar production functions.
    Wood signs were transferred from 1987 SIC 3993, Signs and 
Advertising Specialities, into Other Wood Product Manufacturing. This 
change promotes international comparability with Mexico, while 
reflecting similar production functions.
    Burnt wood articles were transferred from 1987 SIC 3999, 
Manufacturing Industries, NEC, into Other Wood Product Manufacturing. 
This change was necessary to align the U.S. classification with Canada 
and Mexico.
    Also several activities were transferred within the Lumber and Wood 
Products Major Group. The number of industries decreased from 17 in 
1987 to 14 in 1997. For time series linkage 11 of the 17 1987 
industries are comparable within the three percent of the 1997 
industries.

Part X--Proposed New Industry Structure for Rental and Leasing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 20

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

Rental and Leasing

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on November 8 and November 9, 1995 in 
Washington, D.C.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    11/9/95
Mexico..............................  /S/ Enrique Ordaz......    11/9/95
United States.......................  /S/ Triplett Jack E....    11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Rental and Leasing Services
XXX  Rental and Leasing of Automotive Equipment Without Drivers
XXXX  Rental and Leasing of Passenger Cars Without Drivers
XXXX  Rental and Leasing of Trucks Without Drivers, Utility 
Trailers, and Recreation Vehicles
XXX  Rental and Leasing of Consumer Goods
XXXX  Rental of Consumer Electronics, Appliances and Home and Garden 
Tools
XXXX  Rental of Formal Wear and Costumes
XXXX  Rental of Video Tapes
XXXX  Other Rental and Leasing of Consumer Goods
XXX  Rental and Leasing of Machinery and Equipment
XXXX  Rental and Leasing of Heavy Construction, Transportation, 
Mining and Forestry Machinery and Equipment
XXXX  Rental and Leasing of Office Machinery and Equipment
XXXX  Rental and Leasing of Other Machinery and Equipment

Attachment 2--North American Industrial Classification System

    Draft Classification for:

Rental and Leasing

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industry classification for these 
industries.
    The draft classification provides for the subsector Rental and 
Leasing. This subsector is further subdivided into three industry 
groups and nine industries. The placement of this subsector within the 
NAICS structure is not yet decided.

A General Outline

    The Rental and Leasing subsector includes establishments that 
acquire and own a wide variety of tangible goods, such as machinery, 
equipment, computers and consumer goods, and rent or lease these goods 
to customers, businesses or individuals in return for a periodic rental 
or lease payment.
    The subsector includes two main types of establishments: those that 
provide rental of various consumer goods and equipment and those that 
provide longer term leases for

[[Page 26615]]

machinery and equipment generally used in business operations. The 
first type generally provide short-term rentals and operate from a 
retail-like facility. The latter type typically have direct contact 
with individual clients, work with the clients to determine their 
individual needs, and tailor the lease arrangement to those specific 
ends. They often restructure the lease to provide clients with more 
appropriate equipment as the clients' needs change and they have 
expertise in remarketing or disposing of previously leased equipment 
and typically do not operate a retail-like facility.
    Rental and leasing activities are currently dispersed throughout 
the classification systems of the three countries. This grouping brings 
together those activities with similar production processes.
    Establishments that act as a third party in providing financing or 
credit to enable the acquisition of the equipment through a lease 
arrangement, such as banks or credit subsidiaries of manufacturing 
companies, are excluded from this subsector. They are classified in the 
Finance and Insurance sector. Also excluded are those establishments 
primarily engaged in renting or leasing real property (land and 
buildings). They are classified in the Real Estate subsector. Those 
establishments that primarily engage in renting or leasing equipment 
with operators are classified in various subsectors of NAICS depending 
on the nature of the service provided (for example, Transportation or 
Construction). These activities are excluded from this subsector since 
the lessee is paying for the expertise and knowledge of the equipment 
operator, in addition to the rental of the equipment. In many cases, 
such as the rental of heavy construction equipment, the operator is 
essential to operate the equipment. Likewise, because the provision of 
crop harvesting services includes both the equipment and operator, it 
is included in the agriculture subsector. The rental or leasing of 
intangibles or intellectual property is, for the most part, classified 
in the following proposed subsectors or sectors: Information; 
Professional, Scientific and Technical Services; and Arts, 
Entertainment and Recreation. The choice of industry is based on the 
nature and origin of the intangible property being made available for 
rental or leasing.
    This subsector is subdivided into three industry groups. 
Establishments primarily engaged in rental and leasing of passenger 
cars, trucks and utility trailers comprise one industry group. This 
reflects the increasingly common practice of leasing these types of 
equipment, particularly passenger cars. These establishments generally 
operate a retail-like facility, some offer only short term rental, 
others only longer term leases, and some provide both type of services.
    The second industry group includes establishments primarily engaged 
in renting and leasing personal and household goods. Establishments 
classified in this industry group often operate from a retail like or 
storefront facility and normally offer rental and leasing of goods for 
relatively short periods of time.
    The third industry group includes establishments primarily engaged 
in renting and leasing machinery and equipment. The types of 
establishments included in this industry group are generally involved 
in providing capital or investment type equipment that clients use in 
their business operations. These operations are typically characterized 
by a business to business relationship and do not generally involve a 
retail like facility or operation.

Limitations and Constraints of the Classification

    The proposed classification structure does not provide for complete 
coverage of all rental and leasing activity. There are a number 
establishments engaged in rental, leasing and related activities 
included in other areas of the classification. The most important are 
establishments renting and leasing transportation equipment with 
operators, establishments providing financing for lease arrangements 
(Finance and Insurance sector) and those renting and leasing real 
estate (Real Estate subsector). In addition, the structure excludes the 
distribution arm of manufacturers that use leasing as an alternative 
means of distributing their parent company's products. These 
establishments' production processes are more like the sector to which 
they have been assigned than to the production process of 
establishments included in the Rental and Leasing subsector.
    The categories in this subsector are based on production processes. 
Because of this it does not allow for the analysis of rental and 
leasing activities by market segment. Some of the industries in the 
proposed structure cater primarily to businesses and others cater 
primarily to households; many establishments cater to both businesses 
and households. Establishments renting passenger cars and those renting 
home and garden tools are perhaps the best examples.

Relationship to ISIC

    Four of the nine proposed industries are contained within Division 
71, Renting of Machinery and Equipment without Operator, of the current 
International Standard Industrial Classification of all Economic 
Activities (ISIC, Revision 3) of the United Nations. The following 
NAICS industry cannot be assigned to an ISIC division without being 
subdivided: Other Rental and Leasing of Consumer Goods industry that 
includes components of Division 71, Renting of Machinery and Equipment 
without Operator and of Personal and Household Goods and Division 92, 
Recreational, Cultural and Sporting Activities (rental of recreational 
equipment). However, these are small activities and should not 
significantly affect comparability between this NAICS subsector and 
ISIC Division 71. The remaining five proposed industries are contained 
within ISIC Division 71 and ISIC Division 65, Financial Intermediation, 
Except Insurance and Pension Funding (financial leasing). All 
establishments involved in direct leasing are classified in the Rental 
and Leasing subsector in NAICS regardless of the type of lease 
contract.

Changes to National Classifications

    For Canada, the adoption of a Rental and Leasing subsector 
represents a significant departure from its current practice. Although 
the 1980 Canadian Standard Industrial Classification (CSIC) contains 
two industry groups for this type of activity, CSIC 991, Machinery and 
Equipment Rental and Leasing Services, and CSIC 992, Automobile and 
Truck Rental and Leasing Services, many rental and leasing activities 
are distributed throughout the classification. The proposed NAICS 
structure consolidates most rental and leasing activities here.
    The most important structural change is the transfer to this 
subsector of the following activities: rental and leasing, without 
operators, of airplanes, ships and railway equipment from the 
transportation subsector (CSIC's 4522, 4532, 4544); rental and leasing 
of computer and related equipment from the computer services industry 
(CSIC 7721); and rental and leasing of a variety of recreational 
equipment from the Amusement and Recreational Services major group 
(CSIC 96). Since many of these activities are components of existing 
industries, there is a significant number of partial relationships 
between the proposed and existing classifications.

[[Page 26616]]

    The content of existing rental and leasing industries has also been 
distributed among the proposed industries. For example, it is proposed 
to classify the rental and leasing of passenger automobiles and of 
trucks and recreational vehicles in different industries; these 
activities are currently classified in the same industry CSIC 9921, 
Automobile and Truck Rental and Leasing Services. Similarly, the major 
components of CSIC 9912, Rental and Leasing of Audiovisual Equipment 
(consumer electronics, home movies and audiovisual equipment for the 
trade), are assigned to three different NAICS industries.
    For Mexico, this subsector includes 13 classes of CMAP: one of 
these classes is the equivalent of one NAICS industry; five CMAP 
classes make up four NAICS industries, and seven of the remaining CMAP 
classes are combined to create six NAICS industries. These final 
classes are not new but rather represent combinations of existing CMAP 
classes.
    The rental and leasing subsector presents two important changes 
with respect to CMAP. The first is the reclassification of the services 
of buses rented without chauffeur that was classified in CMAP 711318, 
Scholastic Transportation Services and Tourism, and the rental of 
automobiles without chauffeur that was classified in CMAP 711319, 
Rental Services of Automobiles.
    The second change refers to the separation of the CMAP 831121, 
Services of Television Rental, Sound Equipment, Videocassettes and 
Musical Instruments, that is divided into three parts: video rental 
centers and rental centers for appliances and electronics are in the 
same industry in NAICS, and the third part of the CMAP rental class, 
rental of musical instruments, has been combined with the rental of 
compact disks to create another NAICS industry.
    For the United States, the proposed NAICS structure includes 1987 
SIC Industry Group 751, Automotive Rental and Leasing, Without Drivers; 
1987 SIC Industry Group 735, Miscellaneous Equipment Rental and 
Leasing; 1987 SIC 7377, Computer Rental and Leasing; 1987 SIC 7841, 
Video Tape Rental; 1987 SIC 4741, Rental of Railroad Cars; and 
components of other transportation, personal, motion picture, amusement 
service, and miscellaneous business credit institutions industries. 
These changes are designed to bring together establishments that 
primarily rent or lease a wide variety of machinery or goods to 
individuals or businesses. While in most of these cases, the whole 1987 
industry group is moving to the new NAICS subsector, selected 1987 4-
digit industries are split to better define rental and leasing 
activities. This is particularly true in the case of 1987 SIC 7359, 
Equipment Rental and Leasing, NEC, that has been substantially reduced 
in size by the redistribution of activities formerly classified there.

Achievement of Objectives

    The proposed classification structure meets the objectives for the 
North American Industry Classification System (NAICS) in that it 
comprises industries that group establishments with similar production 
processes and achieves comparability for the three participating 
countries. The NAICS structure consolidates rental and leasing of 
equipment and goods in one subsector and provides a structure, as well 
as individual industries, that recognizes specialized segments within 
the subsector.
    The industries are economically significant. Some NAICS industries 
are larger than others, but this was necessary to ensure comparability 
among the countries or because it was not possible to subdivide large 
industries.
    Finally, disruptions to time series, while they exist, have been 
minimized to the extent possible. Most of the changes reflect the 
regrouping of diverse residual categories to create new industries that 
better define the activities.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the NAICS industry subsector 
presented in Part X, Section A--Attachment I, contain less detail than 
is currently in the U.S. SIC system, and less detail than is required 
to meet important analytical requirements in the U.S. The three country 
agreement on NAICS envisions that each country may develop national 
detailed industries below the NAICS industry level, so long as the 
national detail can be aggregated to the NAICS classification, thus 
assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
industry subsector covered in Part X of this notice. For cases where no 
5-digit detail is shown, the ECPC is proposing that the NAICS 4-digit 
industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Rental and Leasing Services:                                                               
XXX................    Rental and Leasing of                                                                    
                        Automotive Equipment                                                                    
                        Without Drivers:                                                                        
XXXX...............     Rental and Leasing of                                                                   
                         Passenger Cars Without                                                                 
                         Drivers:                                                                               
XXXXX..............      Rental of Passenger Cars   E                    7514  Passenger Car Rental.            
                          Without Drivers.                                                                      
XXXXX..............      Leasing of Passenger Cars  R                   *6159  Miscellaneous Business Credit    
                          Without Drivers.                                      Institutions (fleet leasing).   
                                                                         7515  Passenger Car Leasing.           
XXXX...............     Rental and Leasing of       N                   *6159  Miscellaneous Business Credit    
                         Trucks Without Drivers,                                Institutions (truck leasing).   
                         Utility Trailers and                                                                   
                         Recreational Vehicles.                                                                 
                                                                         7513  Truck Rental and Leasing Without 
                                                                                Drivers.                        
                                                                         7519  Utility Trailers and Recreational
                                                                                Vehicle Rental.                 
XXX................    Rental and Leasing of                                                                    
                        Consumer Goods:                                                                         
XXXX...............     Rental of Consumer                                                                      
                         Electronics, Appliances                                                                
                         and Home and Garden                                                                    
                         Tools:                                                                                 
XXXXX..............      Rental of Consumer         N                   *7359  Equipment Rental and Leasing, NEC
                          Electronics and                                       (appliances, TV, VCR, and       
                          Appliances.                                           electronic equipment rental).   
XXXXX..............      Rental and Leasing of      N                   *7359  Equipment Rental and Leasing, NEC
                          Home and Garden                                       (home and garden tool rental).  
                          Equipment.                                                                            

[[Page 26617]]

                                                                                                                
XXXX...............     Rental of Formal Wear and   N                   *7299  Miscellaneous Personal Services, 
                         Costumes.                                              NEC (costume, dress suit, and   
                                                                                tuxedo rental).                 
                                                                        *7819  Services Allied to Motion Picture
                                                                                Production (wardrobe rental for 
                                                                                motion picture film production).
XXXX...............     Rental of Video Tapes.....  E                    7841  Video Tape Rental.               
XXXX...............     Other Rental and Leasing                                                                
                         of Consumer Goods:                                                                     
XXXXX..............      Rental and Leasing of      N                   *7352  Medical Equipment Rental and     
                          Home Health Furniture                                 Leasing (home health furniture  
                          and Equipment.                                        and equipment rental and        
                                                                                leasing).                       
XXXXX..............      Rental of Recreational     N                   *7999  Amusement and Recreation         
                          Goods.                                                Services, NEC (canoe, pleasure  
                                                                                boats, bicycles, motorcycles,   
                                                                                moped, go carts, etc. rental).  
XXXXX..............      All Other Rental and       R                   *7299  Miscellaneous Personal Services, 
                          Leasing of Consumer                                   NEC (locker rental, except cold 
                          Goods.                                                storage).                       
                                                                        *7359  Equipment Rental and Leasing, NEC
                                                                                (except transportation          
                                                                                equipment, industrial equipment,
                                                                                and consumer electronics,       
                                                                                appliances and home and garden  
                                                                                equipment).                     
XXX................    Rental and Leasing of                                                                    
                        Machinery and Equipment:                                                                
XXXX...............     Rental and Leasing of                                                                   
                         Heavy Construction,                                                                    
                         Transportation, Mining                                                                 
                         and Forestry Machinery                                                                 
                         and Equipment:                                                                         
XXXXX..............      Rental and Leasing of      N                   *4499  Water Transportation Services,   
                          Commercial Air, Rail,                                 NEC (ship rental, commercial).  
                          and Water Transportation                                                              
                          Equipment.                                                                            
                                                                        *4741  Rental of Railroad Cars (rental  
                                                                                of railroad cars).              
                                                                        *6159  Miscellaneous Business Credit    
                                                                                Institutions (other heavy       
                                                                                transportation equipment finance
                                                                                leasing, except automotive).    
                                                                        *7359  Equipment Rental and Leasing, NEC
                                                                                (airplane rental and leasing).  
XXXXX..............      Rental and Leasing of      R                   *6159  Miscellaneous Business Credit    
                          Heavy Construction,                                   Institutions (heavy machinery   
                          Mining and Forestry                                   and equipment finance leasing). 
                          Machinery and Equipment.                                                              
                                                                         7353  Heavy Construction Equipment     
                                                                                Rental and Leasing.             
                                                                        *7359  Equipment Rental and Leasing, NEC
                                                                                (oil field and well drilling    
                                                                                equipment).                     
XXXX...............     Rental and Leasing of       N                   *6159  Miscellaneous Business Credit    
                         Office Machinery and                                   Institutions (office equipment).
                         Equipment.                                                                             
                                                                        *7359  Equipment Rental and Leasing     
                                                                                (office machine rental and      
                                                                                leasing).                       
                                                                         7377  Computer Rental and Leasing.     
XXXX...............     Rental and Leasing of       N                   *6159  Miscellaneous Business Credit    
                         Other Machinery and                                    Institutions (other).           
                         Equipment.                                                                             
                                                                        *7352  Medical Equipment Rental and     
                                                                                Leasing (except invalid supplies
                                                                                and home health furniture and   
                                                                                equipment).                     
                                                                        *7359  Equipment Rental and Leasing, NEC
                                                                                (industrial truck and equipment 
                                                                                rental and leasing).            
                                                                        *7819  Services Allied to Motion Picture
                                                                                Production (motion picture      
                                                                                equipment rental).              
                                                                        *7922  Theatrical Producers (except     
                                                                                motion picture) and             
                                                                                Miscellaneous Theatrical        
                                                                                Services (theatrical equipment  
                                                                                rental).                        
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and 
  * means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                               



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
4499....................................  Water Transportation Services,    Rental and Leasing of Commercial    
                                           NEC Ship Rental, Commercial.      Air, Rail, and Water Transportation
                                                                             Equipment (pt).                    
4741@...................................  Rental of Railroad Cars.........  Rental and Leasing of Commercial    
                                                                             Air, Rail, and Water Transportation
                                                                             Equipment (pt).                    
6159@...................................  Miscellaneous Business Credit                                         
                                           Institution:                                                         
                                            Automobile Fleet Finance        Leasing of Passenger Cars Without   
                                             Leasing.                        Drivers (pt).                      
                                            Truck Finance Leasing.........  Rental and Leasing of Trucks Without
                                                                             Drivers, Utility Trailers, and     
                                                                             Recreational Vehicles (pt).        
                                            Air, Rail, and Water Equipment  Rental and Leasing of Commercial    
                                             Finance Leasing.                Air, Rail, and Water Transportation
                                                                             Equipment (pt).                    
                                            Heavy Machinery and Equipment   Rental and Leasing of Heavy         
                                             Finance Leasing.                Construction, Mining, and Forestry 
                                                                             Machinery and Equipment (pt).      

[[Page 26618]]

                                                                                                                
                                            Office Machinery and Equipment  Rental and Leasing of Office        
                                             Finance Leasing.                Machinery and Equipment (pt).      
                                            Other Machinery and Equipment   Rental and Leasing of Other         
                                             Finance Leasing.                Machinery and Equipment (pt).      
7299....................................  Miscellaneous Personal Services:                                      
                                            Formal Wear and Costume Rental  Rental of Formal Wear and Costumes  
                                                                             (pt).                              
                                            Locker Rental, Except Cold      All Other Rental and Leasing of     
                                             Storage.                        Consumer Goods (pt).               
7352@...................................  Medical Equipment Rental and                                          
                                           Leasing:                                                             
                                            Home Health Furniture and       Rental and Leasing of Home Health   
                                             Equipment Rental and Leasing.   Furniture and Equipment.           
                                            Medical Machinery Rental and    Rental and Leasing of Other         
                                             Leasing.                        Machinery and Equipment (pt).      
7353....................................  Heavy Construction Equipment      Rental and Leasing of Heavy         
                                           Rental and Leasing.               Construction, Mining and Forestry  
                                                                             Machinery and Equipment pt).       
7359@...................................  Equipment Rental and Leasing,                                         
                                           NEC:                                                                 
                                            Consumer Electronics and        Rental of Consumer Electronics and  
                                             Appliances Rental and Leasing.  Appliances.                        
                                            Home and Garden Tools and       Rental and Leasing of Home and      
                                             Equipment Rental and Leasing.   Garden Equipment.                  
                                            Residential Furniture, Party    All Other Rental and Leasing of     
                                             Supplies, and All Other         Consumer Goods (pt).               
                                             Miscellaneous.                                                     
                                            Consumer Goods Rental and                                           
                                             Leasing:                                                           
                                            Oilfield and Well Drilling      Rental and Leasing of Heavy         
                                             Machinery and Equipment         Construction, Mining and Forestry  
                                             Rental and.                     Machinery and Equipment (pt).      
                                            Airplane Rental and Leasing...                                      
                                                                            Rental and Leasing of Commercial    
                                                                             Air, Rail, and Water Transportation
                                                                             Equipment (pt).                    
                                            Office Machinery and Equipment  Rental and Leasing of Office        
                                             Rental and Leasing.             Machinery and Equipment (pt).      
                                            Industrial Trucks Rental and    Rental and Leasing of Other         
                                             Leasing.                        Machinery and Equipment (pt).      
7377....................................  Computer Rental and Leasing.....  Rental and Leasing of Office        
                                                                             Machinery and Equipment (pt).      
7513....................................  Truck Rental and Leasing,         Rental and Leasing of Trucks Without
                                           Without Drivers.                  Drivers, Utility Trailers and      
                                                                             Recreational Vehicles (pt).        
7514....................................  Passenger Car Rental............  Rental of Passenger Cars Without    
                                                                             Drivers.                           
7515....................................  Passenger Car Leasing...........  Leasing of Passenger Cars Without   
                                                                             Drivers (pt).                      
7519....................................  Utility Trailer and Recreational  Rental and Leasing of Trucks Without
                                           Vehicle Rental.                   Drivers, Utility Trailers and      
                                                                             Recreational Vehicles (pt).        
7819....................................  Services Allied to Motion                                             
                                           Picture Production:                                                  
                                            Wardrobe Rental for Motion      Rental of Formal Wear and Costumes  
                                             Picture Film Production.        (pt).                              
                                            Motion Picture Equipment        Rental and Leasing of Other         
                                             Rental.                         Machinery and Equipment (pt).      
                                            Talent Payment Services.......  Payroll Services (pt) (Included in  
                                                                             Professional, Technical, and       
                                                                             Scientific Services subsector).    
7841....................................  Video Tape Rental...............  Rental of Video Tapes.              
7922@...................................  Theatrical Producers (Except      Rental and Leasing of Other         
                                           Motion Picture) and               Machinery and Equipment (pt).      
                                           Miscellaneous Theatrical                                             
                                           Services.                                                            
                                            Theatrical Equipment Rental...  Rental and Leasing of Other         
                                                                             Machinery and Equipment (pt).      
7999@...................................  Amusement and Recreation, NEC:                                        
                                            Recreational Goods Rental       Rental of Recreational Goods (pt).  
                                             Including Pleasure Boats.                                          
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and 
  * means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                               



Description of Changes to the U.S. System

    Rental and Leasing Services--Fourteen industries are included in 
this NAICS subsector. Nine of these are new industries; three are 
revised 1987 SIC industries; and two are industries that existed in 
1987. The primary focus of this subsector is to bring together, in one 
subsector, those establishments that primarily rent or lease a wide 
variety of machinery or goods to individuals or businesses. This 
subsector is significantly shaped by the splitting apart and/or 
regrouping of activities of 1987 SIC Industry Group 735, Miscellaneous 
Equipment Rental and Leasing. Additionally, activities from other 1987 
major groups are included here because of the similarity of their 
production processes and to better achieve comparability with Mexico 
and Canada. The following new industries were added for 1997:
    Rental and Leasing of Trucks Without Drivers, Utility Trailers and 
Recreational Vehicles from 1987 SIC 7513, Truck Rental and Leasing 
Without Drivers; 1987 SIC 7519, Utility Trailers and Recreational 
Vehicles Rental; and part of 1987 SIC 6159, Miscellaneous Business 
Credit Institutions.
    Rental of Consumer Electronics and Appliances from part of 1987 SIC 
7359, Equipment Rental and Leasing, NEC.
    Rental and Leasing of Home and Garden Equipment from part of 1987 
SIC 7359, Equipment Rental and Leasing, NEC.
    Rental of Formal Wear and Costumes from part of 1987 SIC 7299, 
Miscellaneous Personal Services, NEC, and part of SIC 7819, Services 
Allied to Motion Picture Production.
    Rental and Leasing of Home Health Furniture and Equipment from part 
of 1987 SIC 7352, Medical Equipment Rental and Leasing.

[[Page 26619]]

    Rental of Recreational Goods from part of 1987 SIC 7999, Amusement 
and Recreation Services, NEC.
    Rental and Leasing of Commercial Air, Rail, and Water 
Transportation Equipment from part of 1987 SIC 4499, Water 
Transportation Services, NEC; part of 1987 SIC 4741, Rental of Railroad 
Cars; part of 1987 SIC 6159, Miscellaneous Business Credit 
Institutions; and part of 1987 SIC 7359, Equipment Rental and Leasing, 
NEC.
    Rental and Leasing of Office Machinery and Equipment from part of 
1987 SIC 6159, Miscellaneous Business Credit Institutions; 1987 SIC 
7377, Computer Rental and Leasing; and part of 1987 SIC 7359, Equipment 
Rental and Leasing, NEC.
    Rental and Leasing of Other Machinery and Equipment from part of 
1987 SIC 6159, Miscellaneous Business Credit Institutions; part of 1987 
SIC 7352, Medical Equipment Rental and Leasing; part of 1987 SIC 7359, 
Equipment Rental and Leasing, NEC; part of 1987 SIC 7819, Services 
Allied to Motion Picture Production; and part of 1987 SIC 7922, 
Theatrical Producers (Except Motion Picture) and Miscellaneous 
Theatrical Services
    The following three 1997 industries were modified from their 1987 
definitions:
    Leasing of Passenger Cars Without Drivers from part of 1987 SIC 
6159, Miscellaneous Business Credit Institutions and 1987 SIC 7515, 
Passenger Car Leasing.
    All Other Rental and Leasing of Consumer Goods from part of 1987 
SIC 7299, Miscellaneous Personal Services, NEC, and part of 1987 SIC 
7359, Equipment Rental and Leasing, NEC. This industry brings together 
all miscellaneous rental and leasing of equipment and goods not 
specified in any of the other NAICS industries because of the 
similarity of production process among all of these activities
    Rental and Leasing of Heavy Construction, Mining, and Forestry 
Machinery and Equipment from part of 1987 SIC 6159, Miscellaneous 
Business Credit Institutions; 1987 SIC 7353, Heavy Construction 
Equipment Rental and Leasing; and part of 1987 SIC 7359, Equipment 
Rental and leasing, NEC. This industry was modified for comparability 
with Canada and Mexico.
    The number of rental and leasing industries increased from 10 in 
1987 to 14 in 1997. For time series linkage, 6 of the 10 1987 
industries are comparable within three percent of the 1997 industries. 
Most of the changes reflect the regrouping of diverse residual 
categories to create new industries that better define the activities. 
For example, new industries have been created from 1987 SIC 7359, 
Equipment Rental and Leasing, NEC; 1987 SIC 7299, Miscellaneous 
Personal Services, NEC; and 1987 SIC 7999, Amusement and Recreation 
Services, NEC. These new industries include, among others, Rental and 
Leasing of Heavy Construction, Transportation, Mining and Forestry 
Machinery and Equipment; Rental and Leasing of Office Machinery and 
Equipment; and Rental of Consumer Electronics and Appliances.

Part XI--Proposed New Industry Structure for Repair and Maintenance

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 21

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

Repair and Maintenance

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on November 8 and November 9, 1995 in 
Washington, D.C.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    11/9/95
Mexico..............................  /S/ Enrique Ordaz......    11/9/95
United States.......................  /S/ Jack E. Triplett...    11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Repair and Maintenance
XXX  Automotive Repair and Maintenance
XXXX  Automotive Mechanical and Electrical Repair and Maintenance
XXXX  Automotive Body, Paint and Interior Repair
XXXX  Other Automotive Repair and Maintenance
XXX  Heavy and Industrial Machinery and Equipment Repair and 
Maintenance
XXXX  Heavy and Industrial Machinery and Equipment Repair and 
Maintenance
XXX  Electronic and Precision Equipment Repair and Maintenance
XXXX  Electronic and Precision Equipment Repair and Maintenance
XXX  Personal or Household Goods Repair and Maintenance
XXXX  Home and Garden Equipment and Appliance Repair and Maintenance
XXXX  Reupholstery and Furniture Repair
XXXX  Footwear and Leather Goods Repair
XXXX  Other Personal or Household Goods Repair and Maintenance

Attachment 2--North American Industrial Classification System

    Draft Classification for:

Repair and Maintenance

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industry classification for these 
industries.
    The draft classification provides for the subsector Repair and 
Maintenance. This subsector is further sub-divided into four industry 
groups and nine industries. The placement of this subsector within the 
NAICS structure has not yet been decided.

A General Outline

    In the current classification systems of the three countries, 
repair and maintenance establishments are included in many different 
categories based on the type of item being repaired. Further, repair 
and maintenance industries are dispersed among many industry categories 
in ISIC. The NAICS structure brings together most types of repair and 
maintenance establishments and categorizes them based on production 
processes, that is, on the type of repair and maintenance activity 
performed, and the necessary skills, expertise and processes that are 
found in different repair and maintenance establishments.
    Establishments included in the Repair and Maintenance subsector 
apply skill and knowledge to restoring machinery, equipment and other 
products to working order for customers. These establishments also 
typically perform general or routine maintenance on such products to 
ensure that they work efficiently and to prevent breakdown and 
unnecessary repairs.
    This subsector includes four industry groups, each based on the 
type of repair and maintenance services provided and on the operating 
characteristics of the establishments classified in the component 
industries.
    The Automotive Repair and Maintenance industry group includes 
establishments involved in the repair and maintenance of motor 
vehicles, both cars and trucks. Establishments

[[Page 26620]]

classified in the Automotive Mechanical and Electrical Repair and 
Maintenance industry employ mechanics with specialized technical skills 
to diagnose and repair the mechanical and electrical systems of motor 
vehicles. The Automotive Body, Paint and Interior Repair industry 
includes establishments with staff skilled in repairing or painting 
automotive exteriors, or in repairing interiors. The Other Automotive 
Repair and Maintenance industry includes establishments that provide a 
variety of automotive care services that help to maintain vehicles but 
that do not normally require the technical skill levels that 
establishments in the other industries possess.
    The Heavy and Industrial Machinery and Equipment Repair and 
Maintenance industry group includes establishments that repair and 
maintain transportation equipment, except motor vehicles, and other 
heavy and industrial machinery and equipment.
    The Electronic and Precision Equipment Repair and Maintenance 
industry group includes establishments that repair electronic 
equipment, such as computers and communications equipment, and other 
highly specialized precision instruments. These establishments 
typically have staff skilled in repairing items having complex, 
electronic components.
    The last industry group, Personal or Household Goods Repair and 
Maintenance, includes establishments that repair a wide variety of 
goods, most of which are personal and household goods such as garden 
tools and home appliances.
    The proposed subsector does not include all establishments that do 
repair and maintenance. For example, a substantial amount of repair is 
done by establishments that also manufacture machinery, equipment and 
other goods. These establishments are included in the Manufacturing 
sector in NAICS. Rebuilding of machinery and equipment for resale is 
considered manufacturing in NAICS and therefore not included in this 
subsector. In addition, repair of transportation equipment is often 
provided by or based at transportation facilities (airports, seaports) 
and these activities are included in the Transportation sector.
    A particularly unique situation exists with repair of buildings. 
Plumbing, electrical installation and repair, painting and decorating 
and other construction-related establishments are often involved in 
performing installation or other work on new construction as well as 
providing repair services on existing structures. While some specialize 
in repair, it is difficult to distinguish between the two types and all 
have been included in the Construction sector.
    This classification also does not delineate between repair services 
provided to businesses versus those that serve households. Although 
some industries primarily serve businesses and other households, 
separation by class of customer is limited by the fact that many 
establishments serve both businesses and households. Establishments 
repairing computers and consumer electronics products are two examples 
of such overlap.

Limitations and Constraints of the Classification

    In the Repair and Maintenance subsector, most activities identified 
in one country exist in the others. The way activities are combined in 
establishments differs to some extent in the different countries. 
Therefore, the NAICS structure contains somewhat less detail than the 
existing classification systems of the three countries. The level of 
specialization for repair services varies significantly among the three 
countries and the NAICS levels reflect those for which common classes 
can be established. For example, there are a significant number of 
establishments in Mexico specializing in rebuilding automotive engines 
as a repair service, and these are located in this subsector. In the 
United States and Canada, owners of cars that need rebuilt engines 
typically buy a factory rebuilt engine that is installed at an 
automotive repair shop.

Relationship to ISIC

    The approach adopted for NAICS, that of regrouping most repair 
activities in a single subsector, is significantly different from the 
approach employed in the current International Standard Industrial 
Classification of all Economic Activities (ISIC, Revision 3) of the 
United Nations. The most important difference is that ISIC classifies 
establishments primarily engaged in the repair of most types of 
machinery and equipment in the same industry as those manufacturing the 
equipment. For example, the repair of printing equipment is included in 
ISIC, 2929, Manufacture of Other Special Purpose Machinery. Repair 
activities can be found in twenty-seven manufacturing industries 
spanning seven 2-digit groups in ISIC. Repair activities also are found 
in ISIC Division 50, Sale, Maintenance and Repair of Motor Vehicles and 
Motorcycles, Retail Sales of Automotive Fuel; Division 52, Retail 
Trade, Except of Motor Vehicles and Motorcycles, Repair of Personal and 
Household Goods; and Division 72, Computer and Related Activities.
    Largely as a result of the conceptual difference, four of the nine 
proposed NAICS industries relate to more than one 2-digit ISIC. These 
are: Heavy and Industrial Machinery & Equipment Repair and Maintenance 
(three 2-digit ISIC's); Electronic and Precision Equipment Repair and 
Maintenance (six 2-digit ISIC's); Home and Garden Equipment and 
Appliance Repair and Maintenance (four 2-digit ISIC's); and Other 
Personal or Household Goods Repair and Maintenance (seven 2-digit 
ISIC's).

Changes to National Classification

    For Canada, the adoption of a Repair and Maintenance subsector 
represents a major departure from its current practice. The 1980 
Canadian Standard Industrial Classification (CSIC) assigns repair and 
maintenance activities to many subsectors including Retail Trade, 
Wholesale Trade, Business Services and Personal and Household Services. 
The proposed NAICS structure consolidates most repair and maintenance 
activities in this subsector.
    The most important structural change is the transfer to this 
subsector of the following activities: the repair and maintenance of 
automobiles, home appliances, consumer electronics, furniture, 
recreational vehicles, bicycles, musical instruments and watches and 
jewelry from retail trade; the repair and maintenance of a wide range 
of machinery and equipment from wholesale trade; the repair and 
maintenance of computer and related equipment from business services; 
and the repair of shoes, leather goods and clothing from personal 
services. Since many of these activities are components of existing 
industries, there are a significant number of partial relationships 
between the proposed and existing classifications, in particular for 
wholesale trade industries. In practice, however, the number of 
establishments moving from the Wholesale Trade sector to the Repair and 
Maintenance subsector is small. The repair and maintenance of machinery 
and equipment is often a secondary activity of wholesalers of the 
machinery and equipment and the number of establishments specializing 
in repairs is relatively small.
    More often than not, the repair and maintenance activities 
currently found in retail trade, business services and personal 
services are classified in separate industries. As a result, the 
relationship between the new and old classifications is more 
straightforward. Furthermore, a number of the existing

[[Page 26621]]

industries will be retained in the national classification, thereby 
facilitating the comparison between statistics compiled on the basis of 
the two systems.
    For Mexico, there were fewer changes since CMAP class 96, Repair 
and Maintenance Services, was the basis upon which NAICS was 
established. Changes to CMAP included CMAP classes 951023, Other 
Professional Technical Specialized Services not previously mentioned; 
961203, Automotive Body Repair Services; and part of CMAP 961309, 
Furniture Upholstery Services. These classes were merged to form a 
single NAICS industry, Automotive Body, Paint and Interior Repair.
    Finally, computer repair, CMAP 961106, Repair and Maintenance of 
Machinery not previously mentioned, was combined with Electronic and 
Precision Equipment Repair and Maintenance in NAICS.
    For the United States, the proposed NAICS structure consolidates 
most types of repair establishments into this NAICS subsector. The 
structure primarily includes those industries covered by 1987 SIC Major 
Group 76, Miscellaneous Repair Services, and 1987 SIC Industry Group 
753, Automotive Repair Services. The new structure also includes 
establishments classified in 1987 SIC 7542, Car Washes; part of 1987 
SIC 7549, Automotive Services, Except Repair and Carwashes (oil change 
and lubricating services, rustproofing services); 1987 SIC 7378, 
Computer Maintenance and Repair; 1987 SIC 7251, Shoe Repair Shops and 
Shoeshine Parlors; part of 1987 SIC 7219, Laundry and Garment Services, 
NEC (repair of furs and apparel and reweaving of textiles); and part of 
1987 SIC 3732, Boat Building and Repairing (repair services). Tire 
retreading and electric motor rebuilding on a factory basis are 
manufacturing activities and are now included in the Manufacturing 
sector in NAICS.
    The NAICS structure and U.S. national industry detail provide new 
industry classifications for various types of industrial machinery and 
equipment repair, electronic and precision equipment repair, and other 
specialized repair and maintenance. Many of the new industries were 
created by breaking apart 1987 SIC 7629, Electrical and Electronic 
Repair Shops, NEC, and 1987 SIC 7699, Repair Shops and Related 
Services, N.E.C.

Achievement of Objectives

    The proposed classification structure meets the objectives for the 
North American Industry Classification System (NAICS) in that it 
comprises industries that group establishments with similar production 
processes and achieves comparability for the three participating 
countries. The NAICS structure consolidates repair and maintenance in 
one subsector and provides a structure that includes specialized 
segments within the subsector.
    Other objectives of the NAICS project have also been met. New 
industries that recognize new and emerging activities have been 
established, particularly in the area of electronic and precision 
equipment repair and maintenance.
    The industries are economically significant. Some NAICS industries 
are much larger than others, but this was necessary to ensure 
comparability among the countries or because it was not possible to 
subdivide large industries.
    Finally, disruptions to time series, while they exist, have been 
minimized to the extent possible. Most of the changes reflect the 
regrouping of diverse residual categories to create new industries that 
better define the activities.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the NAICS industry subsector 
presented in Part XI, Section A--Attachment 1, contain less detail than 
is currently in the U.S. SIC system, and less detail than is required 
to meet important analytical requirements in the U.S. The three country 
agreement on NAICS envisions that each country may develop national 
detailed industries below the NAICS industry level, so long as the 
national detail can be aggregated to the NAICS classification, thus 
assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
industry subsector covered in Part XI of this notice. For cases where 
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Repair and Maintenance:                                                                    
XXX................    Automotive Repair and                                                                    
                        Maintenance:                                                                            
XXXX...............      Automotive Mechanical and                                                              
                          Electrical Repair and                                                                 
                          Maintenance:                                                                          
XXXXX..............      General Automotive Repair  E                    7538  General Automotive Repair Shops. 
XXXXX..............      Automotive Exhaust System  E                    7533  Automotive Exhaust System Repair 
                          Repair.                                               Shops.                          
XXXXX..............      Automotive Transmission    E                    7537  Automotive Transmission Repair   
                          Repair.                                               Shops.                          
XXXXX..............      Other Automotive           E                    7539  Automotive Repair Shops, NEC.    
                          Mechanical and                                                                        
                          Electrical Repair and                                                                 
                          Maintenance.                                                                          
XXXX...............      Automotive Body, Paint,                                                                
                         and Interior Repair:                                                                   
XXXXX..............      Automotive Body, Paint     E                    7532  Top, Body, and Upholstery Repair 
                          and Upholstery Repair                                 Shops and Paint Shops.          
                          and Maintenance.                                                                      
XXXXX..............      Automotive Glass           E                    7536  Automotive Glass Replacement     
                          Replacement Shops.                                    Shops.                          
XXXX...............     Other Automotive Repair                                                                 
                         and Maintenance:                                                                       
XXXXX..............      Automotive Oil Change and  N                   *7549  Automotive Services, Except      
                          Lubrication Shops.                                    Repair and Carwashes            
                                                                                (lubricating service,           
                                                                                automotive).                    
XXXXX..............      Car Washes...............  E                    7542  Carwashes.                       
XXXXX..............      All Other Automotive       R                   *7534  Tire Retreading and Repair Shops 
                          Repair and Maintenance.                               (repair).                       
                                                    ................    *7549  Automotive Services, Except      
                                                                                Repair and Carwashes (except    
                                                                                lubricating and towing).        

[[Page 26622]]

                                                                                                                
XXX................    Heavy and Industrial                                                                     
                        Machinery and Equipment                                                                 
                        Repair and Maintenance:                                                                 
XXXX...............     Heavy and Industrial                                                                    
                         Machinery and Equipment                                                                
                         Repair and Maintenance:                                                                
XXXXX..............      Transportation Equipment   N                   *3732  Boat Building and Repairing (boat
                          Repair and Maintenance.                               repair).                        
                                                    ................    *7699  Repair Shops and Related         
                                                                                Services, NEC (other non-       
                                                                                automotive transportation       
                                                                                equip.).                        
XXXXX..............      Other Industrial           R                   *7623  Refrigerator and Air-Conditioning
                          Machinery and Equipment                               Service and Repair Shops        
                          Repair and Maintenance.                               (commercial refrigerator        
                                                                                equipment repair).              
                                                    ................    *7694  Armature Rewinding Shops         
                                                                                (repair).                       
                                                    ................    *7699  Repair Shops and Related         
                                                                                Services, NEC (industrial       
                                                                                machines and equipment).        
XXX................    Electronic and Precision                                                                 
                        Equipment Repair and                                                                    
                        Maintenance:                                                                            
XXXX...............     Electronic and Precision                                                                
                         Equipment Repair and                                                                   
                         Maintenance:                                                                           
XXXXX..............      Consumer Electronics       N                   *7622  Radio and Television Repair Shops
                          Repair and Maintenance.                               (stereo, TV, VCR, and other     
                                                                                consumer electronics equipment).
                                                    ................    *7629  Electrical and Electronic Repair 
                                                                                Shops, NEC (consumer equipment  
                                                                                except computer).               
XXXXX..............      Computer and Office        N                    7378  Computer Maintenance and Repair. 
                          Machine Repair and                                                                    
                          Maintenance.                                                                          
                                                    ................    *7629  Electrical and Electronic Repair 
                                                                                Shops, NEC (business and office 
                                                                                machine repair, electrical).    
                                                    ................    *7699  Repair Shops and Related         
                                                                                Services, NEC (typewriter       
                                                                                repair).                        
XXXXX..............      Communication Equipment    N                   *7622  Radio and Television Repair Shops
                          Repair and Maintenance.                               (telecommunication equipment    
                                                                                repair).                        
                                                    ................    *7629  Electrical and Electronic Repair 
                                                                                Shops, NEC (telephone set       
                                                                                repair).                        
XXXXX..............      Other Electronic and       N                   *7629  Electrical and Electronic Repair 
                          Precision Equipment                                   Shops, NEC (electrical measuring
                          Repair and Maintenance.                               instrument repair and           
                                                                                calibration, medical equipment  
                                                                                repair, electrical).            
                                                    ................    *7699  Repair Shops and Related         
                                                                                Services, NEC (dental instrument
                                                                                repair, laboratory instrument   
                                                                                repair, medical equipment and   
                                                                                other electronic and precision  
                                                                                equipment repair, except        
                                                                                typewriters).                   
XXX................    Personal or Household Goods                                                              
                        Repair and Maintenance:                                                                 
XXXX...............     Home and Garden Equipment                                                               
                         and Appliance Repair and                                                               
                         Maintenance:                                                                           
XXXXX..............      Home and Garden Equipment  N                   *7699  Repair Shops and Related         
                          Repair and Maintenance.                               Services, NEC (lawnmower repair 
                                                                                shops, sharpening and repairing 
                                                                                knives, saws and tools).        
XXXXX..............      Appliance Repair and       N                   *7623  Refrigeration and Air-           
                          Maintenance.                                          Conditioning Service and Repair 
                                                                                Shops (except commercial).      
                                                    ................    *7629  Electrical and Electronic Repair 
                                                                                Shops, NEC (appliance repair,   
                                                                                electrical; washing machine     
                                                                                repair; Electric razor repair). 
                                                    ................    *7699  Repairs Shops and Related        
                                                                                Services, NEC (gas appliance    
                                                                                repair service, sewing machine  
                                                                                repair, stove repair shops, and 
                                                                                other non-electrical appliance).
XXXX...............     Reupholstery and Furniture  E                    7641  Reupholstery and Furniture       
                         Repair.                                                Repair.                         
XXXX...............     Footwear and Leather Goods  R                    7251  Shoe Repair and Shoeshine        
                         Repair.                                                Parlors.                        
                                                    ................    *7699  Repair Shops and Related Services
                                                                                (leather goods repair shops,    
                                                                                luggage repair shops, pocketbook
                                                                                repair shops).                  
XXXX...............     Other Personal or           N                   *7219  Laundry and Garment Services, NEC
                         Household Goods Repair                                 (alteration and repair).        
                         and Maintenance.                                                                       
                                                    ................     7631  Watch, Clock, and Jewelry Repair.
                                                    ................     7692  Welding Repair.                  
                                                    ................    *7699  Repair Shops and Related         
                                                                                Services, NEC (except           
                                                                                industrial, electronic, home and
                                                                                garden, appliance, and leather  
                                                                                goods).                         
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and 
  * means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                               



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
3732@...................................  Boat Building and Repairing       Transportation Equipment Repair and 
                                           (Boat repair).                    Maintenance (pt).                  

[[Page 26623]]

                                                                                                                
7219....................................  Laundry and Garment Services,     Other Personal or Household Goods   
                                           NEC (Alteration and Repair).      Repair and Maintenance (pt).       
7251....................................  Shoe Repair Shops and Shoeshine   Footwear and Leather Goods Repair   
                                           Parlors.                          (pt).                              
7378....................................  Computer Maintenance and Repair.  Computer and Office Machine Repair  
                                                                             and Maintenance (pt).              
7532....................................  Top, Body, and Upholstery Repair  Automotive Body, Paint, and         
                                           Shops and Paint Shops.            Upholstery Repair and Maintenance. 
7533....................................  Automotive Exhaust System Repair  Automotive Exhaust System Repair.   
                                           Shops.                                                               
7534@...................................  Tire Retreading and Repair                                            
                                           Shops:                                                               
                                            Remanufacturing...............  Manufacturing Sector.               
                                            Repair........................  All Other Auto Repair and           
                                                                             Maintenance (pt).                  
7536....................................  Automotive Glass Replacement      Automotive Glass Replacement Shops. 
                                           Shops.                                                               
7537....................................  Automotive Transmission Repair    Automotive Transmission Repair.     
                                           Services.                                                            
7538....................................  General Automotive Repair         General Automotive Repair.          
                                           Services.                                                            
7539....................................  Automotive Repair shops, NEC....  Other Automotive Mechanical and     
                                                                             Electrical Repair and Maintenance. 
7542....................................  Carwashes.......................  Car Washes.                         
7549@...................................  Automotive Services, Except                                           
                                           Repair and Carwashes:                                                
                                            Lubricating Services,           Automotive Oil Change and           
                                             Automotive.                     Lubrication Shops.                 
                                            Towing........................  Towing Services (Included in        
                                                                             Transportation sector).            
                                            Automotive Services, Except     All Other Automotive Repair and     
                                             Repair and Carwashes (except    Maintenance (pt).                  
                                             lubricating and towing).                                           
7622....................................  Radio and Television Repair                                           
                                           Shops:                                                               
                                            Stereo, TV, VCR, and Other      Consumer Electronics Repair and     
                                             Consumer Electronics            Maintenance (pt).                  
                                             Equipment.                                                         
                                            Telecommunication Equipment     Communication Equipment Repair and  
                                             Repair.                         Maintenance (pt).                  
7623@...................................  Refrigeration and Air-                                                
                                           Conditioning Services and                                            
                                           Repair Shops:                                                        
                                            Commercial Refrigerator         Other Industrial Machinery and      
                                             Equipment Repair.               Equipment Repair and Maintenance   
                                                                             (pt).                              
                                            Except Commercial.............  Appliance Repair and Maintenance    
                                                                             (pt).                              
7629@...................................  Electrical and Electronic Repair                                      
                                           Shops, NEC:                                                          
                                            Business and Office Machine     Computer and Office Machine Repair  
                                             Repair, Electrical.             and Maintenance (pt).              
                                            Telephone Set Repair..........  Communication Equipment Repair and  
                                                                             Maintenance (pt).                  
                                            Electrical Measuring            Other Electronic and Precision      
                                             Instrument Repair and           Equipment Repair and Maintenance   
                                             Calibration, Medical            (pt).                              
                                             Equipment Repair, Electrical.                                      
                                            Appliance Repair, Electrical;   Appliance Repair and Maintenance    
                                             Washing Machine Repair;         (pt).                              
                                             Electric Razor Repair.                                             
                                            Consumer Electronic Equipment   Consumer Electronics Repair and     
                                             Repair Except Computer.         Maintenance (pt).                  
7631@...................................  Watch, Clock, and Jewelry Repair  Other Personal or Household Goods   
                                                                             Repair and Maintenance (pt).       
7641....................................  Reupholstery and Furniture        Reupholstery and Furniture Repair.  
                                           Repair.                                                              
7692@...................................  Welding Repair..................  Other Personal or Household Goods   
                                                                             Repair and Maintenance (pt).       
7694@...................................  Armature Rewinding Shops:                                             
                                            Repair........................  Other Industrial Machinery and      
                                                                             Equipment Repair and Maintenance   
                                                                             (pt).                              
                                            Remanufacturing...............  Included in Manufacturing Sector.   
7699@...................................  Repair Shops and Related                                              
                                           Services, NEC:                                                       
                                            Other Non-Automotive            Transportation Equipment Repair and 
                                             Transportation Equipment.       Maintenance (pt).                  
                                            Industrial Machines and         Other Industrial Machinery and      
                                             Equipment.                      Equipment Repair and Maintenance   
                                                                             (pt).                              
                                            Typewriter Repair.............  Computer and Office Machine Repair  
                                                                             and Maintenance (pt).              
                                            Dental Instrument Repair,       Other Electronic and Precision      
                                             Laboratory Instrument Repair,   Equipment Repair and Maintenance   
                                             Medical Equipment and Other     (pt).                              
                                             Electronic and Precision.                                          
                                            Equipment Repair, Except                                            
                                             Typewriters:                                                       
                                             Lawnmower Repair Shops,        Home and Garden Equipment Repair and
                                              Sharpening and Repairing       Maintenance (pt).                  
                                              Knives, Saws and Tools.                                           
                                             Gas Appliance Repair Service,  Appliance Repair and Maintenance.   
                                              Sewing Machine Repair, Stove                                      
                                              Repair Shops, and Other Non-                                      
                                              Electrical Appliances.                                            
                                             Leather Goods Repair Shops,    Footwear and Leather Goods Repair   
                                              Luggage Repair Shops,          (pt).                              
                                              Pocketbook Repair Shops.                                          
                                             Lock Parts Made to Order and   (Included in Management and Support 
                                              Locksmith Shops.               Services subsector).               

[[Page 26624]]

                                                                                                                
                                             Except Industrial,             Other Personal or Household Goods   
                                              Electronic, Home and Garden,   Repair and Maintenance.            
                                              Appliance, Locksmith, and                                         
                                              Leather Goods.                                                    
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of''. @ means time series break has been created that is greater than 3% of
  the 1992 revenues for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere Classified.       



Description of Changes to the U.S. System

    Repair and Maintenance--Nine new NAICS or national industries were 
created in this new subsector for 1997 to better describe the 
activities associated with the subsector and to bring together 
activities with similar production functions. A number of these 
industries were created from parts of two 1987 Not Elsewhere Classified 
(NEC) industries. The new industries are:
    Automotive Oil Change and Lubrication Shops from part of 1987 SIC 
7549, Automotive Services, Except Repair and Carwashes.
    Transportation Equipment Repair and Maintenance from part of 1987 
SIC 3732, Boat Building and Repairing, and part of 1987 SIC 7699, 
Repair Shops and Related Services, NEC.
    Consumer Electronics Repair and Maintenance from part of 1987 SIC 
7622, Radio and Television Repair Shops, and part of 1987 SIC 7629, 
Electrical and Electronic Repair Shops, NEC.
    Computer and Office Machine Repair and Maintenance from 1987 SIC 
7378, Computer Maintenance and Repair; part of 1987 SIC 7629, 
Electrical and Electronic Repair Shops, NEC; and part of 1987 SIC 7699, 
Repair Shops and Related Services, NEC.
    Communication Equipment Repair and Maintenance from part of 1987 
SIC 7622, Radio and Television Repair Shops, and part of 1987 SIC 7629, 
Electrical and Electronic Repair Shops, NEC.
    Other Electronic and Precision Equipment Repair and Maintenance 
from part of 1987 SIC 7629, Electrical Electronic Repair Shops, NEC, 
and part of 1987 SIC 7699, Repair Shops and Related Services, NEC.
    Home and Garden Equipment Repair and Maintenance from part of 1987 
SIC 7699, Repair Shops and Related Services, NEC.
    Appliance Repair and Maintenance from part of 1987 SIC 7623, 
Refrigeration and Air-Conditioning Service and Repair Shops; part of 
1987 SIC 7629, Electrical and Electronic Repair Shops, NEC; and part of 
1987 SIC 7699, Repair Shops and Related Services, NEC.
    Other Personal or Household Good Repair and Maintenance from part 
of 1987 SIC 7219, Laundry and Garment Services, NEC; 1987 SIC 7631, 
Watch, Clock, and Jewelry Repair; 1987 SIC 7692, Welding Repair; and 
part of 1987 SIC 7699, Repair Shops and Related Services, NEC.
    The 1987 SIC Major Group 76, Miscellaneous Repair Services, was 
split into 3 new industry groups: Heavy and Industrial Machinery and 
Equipment Repair and Maintenance; Electronic and Precision Equipment 
Repair and Maintenance; and Personal and Household Goods Repair and 
Maintenance. Of the 8 industries in 1987 Major Group 76 only two, Radio 
and Television Repair and Reupholstery and Furniture Repair, will not 
have a time series break. There will be time series breaks for the 
other six 1987 SIC industries. These changes were made to break up the 
miscellaneous industries and to more clearly define industries with 
similar production functions.
    There will also be a time series break for 1987 SIC's 7534 and 
7549. The time series break for 1987 SIC 7534, Tire Retreading and 
Repair Shops, is the result of moving the remanufacturing portion of 
retreading to the manufacturing sector and the repair to All Other Auto 
Repair and Maintenance. The time series break for 1987 SIC 7549 is the 
result of splitting oil change and lubrication shops and towing 
services from all other automotive repair, Automotive Services, Except 
Repairs and Carwashes, and maintenance.

Part XII--Proposed New Industry Structure for Management and Support 
Services

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 22

    This Document represents the proposed agreement on the structure of 
the North American Industry Classification System (NAICS) for the 
following industries: Management and Support Services.
    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on November 8 and November 9, 1995 in 
Washington, D.C.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    11/9/95
Mexico..............................  /S/ Enrique Ordaz......    11/9/95
United States.......................  /S/ Jack E. Triplett...    11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Management and Support Services
XXX  Management and Facilities Support Services
XXXX  Management Services
XXXX  Facilities Support Management Services
XXX  Employment Services
XXXX  Employment Placement Agencies
XXXX  Temporary Help Services
XXXX  Employee Leasing Services
XXX  Administrative Support Services
XXXX  Document Preparation Services
XXXX  Telephone Call Centers
XXXX  Business Service Centers
XXXX  Collection Agencies
XXXX  Credit Bureaus
XXXX  Other Administrative Support Services
XXX  Travel Arrangement and Reservation Services
XXXX  Travel Agencies
XXXX  Tour Operators
XXXX  Other Travel Arrangement and Reservation Services
XXX  Security and Investigation Services
XXXX  Investigation, Guard and Armored Car Services
XXXX  Security Systems Services
XXX  Services to Buildings and Dwellings

[[Page 26625]]

XXXX  Exterminating and Pest Control Services
XXXX  Janitorial Services
XXXX  Carpet and Upholstery Cleaning Services
XXXX  Landscaping Care and Maintenance Services
XXXX  Other Services to Buildings and Dwellings
XXX  Miscellaneous Support Services
XXXX  Packaging and Labeling Services
XXXX  Convention and Trade Show Organizers
XXXX  Other Miscellaneous Support Services

Attachment 2--North American Industry Classification System

    Draft Classification for:

Management and Support Services

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industry classification for these 
industries.
    The draft classification provides for the Management and Support 
Services subsector. This subsector is further sub-divided into seven 
industry groups and 24 industries. The placement of this subsector 
within the NAICS structure is not yet determined.

A General Outline

    The statistical agencies of Canada, Mexico, and the United States 
have agreed to place major emphasis on improved services 
classifications in NAICS, and to give special attention to developing 
production-oriented classifications for new and emerging industries and 
service industries in general.
    Most past services classifications, including the International 
Standard Industrial Classification of all Economic Activities (ISIC, 
Revision 3) have two analytical inadequacies. First, individual 
services industries have been too aggregated to be useful. They have 
combined too many disparate activities into a single industry 
definition. This criticism has been heard even in the U.S., where the 
1987 Standard Industrial Classification has more services industries 
detail than is the case for other classification systems. As indicated 
later in this outline, the detail problem has been addressed in NAICS 
by breaking out new services industries from many of the broad and 
heterogeneous industry definitions in the former systems of all three 
countries. These new industries reflect the increasing degree of 
specialization in the economy as businesses and other organizations 
increasingly contract out for services that have historically been done 
in house. In order to meet this objective, a number of industries were 
established that are presently small or nonexistent in Canada or 
Mexico. Many of the establishments in these new industries are included 
in miscellaneous classes in current classification systems and the 
NAICS structure will substantially reduce the size of such residual 
classes.
    A second problem in past services industry classifications is a 
general lack of a coherent structure. To take the 1987 U.S. SIC system 
as an example, though it has a major group (2-digit) for Business 
Services, it is difficult to discern an organizational principle in 
this subsector, or the relation the industries included in it had to 
each other or to the division as a whole. The Canadian classification 
also includes a grouping for Business Services, but its coverage is 
different. Again, this lack of a coherent structure has been 
criticized.
    Currently, activities included in the Management and Support 
Services subsector are scattered throughout the existing classification 
systems; their grouping into a single area has allowed for the creation 
of more homogeneous aggregates for these service-producing industries. 
This, however, has been achieved at the expense of creating a subsector 
less homogeneous across all industry groups contained in it than in 
other proposed NAICS subsectors. However, the fundamental objective of 
NAICS is to define industries and industry aggregates on the basis of 
similarity in production process. This objective is largely met in the 
case of the individual industries (4-digit) and industry groups (3-
digit) of this subsector, even though the subsector includes industry 
groups that cover a diverse set of activities.
    The Management and Support Services subsector groups establishments 
that are engaged in activities that support the day-to-day operations 
of other organizations. The processes employed in this sector are often 
integral parts of the activities of establishments found in all sectors 
of the economy (general management, personnel administration, clerical 
activities, cleaning activities, etc.). The establishments classified 
in this subsector have specialized in one or more of these 
administrative and support activities, and can therefore provide 
services to clients in a variety of industries and, in some cases, to 
households. The individual industries of this subsector are defined on 
the basis of the particular process in which they are engaged and the 
particular service(s) they provide.
    This proposed subsector includes a mix of well established and 
emerging industries. The number of new classes varies from country to 
country; approximately half of the proposed industries are new or 
redefined in the Canadian and U.S. systems while most are new in the 
Mexican system. The following paragraphs provide a brief description of 
the content of each industry group and observations on issues that are 
of particular interest.
    The Management and Facilities Support Services industry group 
includes two industries. The first, Management Services, includes those 
establishments that provide management services to clients on a day-to-
day basis. For example, establishments in this industry may provide 
management services to oversee and coordinate the office operations of 
a physician's practice. This might include personnel management, 
bookkeeping, and other administrative services. The second NAICS 
industry, Facilities Support Management Services, includes 
establishments that provide managerial and operating staff to deliver a 
wide range of services that are essential to support the operations of 
an establishment or facility. Such establishments provide food service, 
janitorial service, guard service and so forth to support the 
operations of facilities such as hospitals or government reservations. 
If each of the services were provided by different establishments, 
these different establishments would be included in the appropriate 
industries. However, these facility management establishments are 
unique in that they provide a broad mix of services that involve 
multiple production processes. This industry is significant in the 
United States with the largest operations being establishments that 
serve government facilities or reservations. It is not significant in 
Canada and Mexico.
    The Employment Services industry group includes three industries. 
Employment Placement Agencies are establishments engaged in listing 
employment vacancies and in selecting, referring and placing applicants 
in employment on either a permanent or temporary basis. A separate 
industry, Temporary Help Services, is included for establishments that 
supply workers to client businesses for limited periods of time to 
supplement the work force of the client. Another industry, Employee 
Leasing Services, is included for establishments that acquire all or 
part of a client's work force and ``lease back'' the employees to the 
client organization. Both industries are large and growing in the 
United States, reflecting the increasing specialization and complexity 
of the U.S. economy. Employee leasing is not significant in Canada and 
Mexico.

[[Page 26626]]

    The Administrative Support Services industry group includes 
establishments engaged in document preparation, telephone call center 
operation, copy or quick printing services, and mail center operation, 
bill collection and similar activities. These activities are those 
ongoing routine, administrative support functions that all businesses 
and organizations must do and that they have traditionally done for 
themselves. Recent trends are to contract or purchase such services 
from businesses that specialize in such activities and can therefore 
provide the services more efficiently. While most of the industries in 
this group are relatively small, some are growing rapidly and are 
expected to continue to grow.
    The Travel Arrangement and Reservation Services industry group 
includes travel agents, tour operators and providers of other travel 
arrangement services such as hotel and restaurant reservations, and 
arranging the purchase of tickets. Establishments in this industry 
serve many types of clients, including individual consumers, and the 
industries in this group cannot be viewed as strictly ``support.'' 
However, this industry group was placed in this subsector because the 
services are often of the ``support'' nature (for example, travel 
arrangement) and businesses and other organizations are increasingly 
the ones purchasing such services.
    The Security and Investigation Services industry group includes 
establishments engaged in a range of security related activities such 
as guard and patrol services and alarm monitoring services. The desire 
to contract out for such services and the impact of new, sophisticated 
electronic security systems has contributed to the size and growth of 
the industries in this industry group.
    The Services to Buildings and Dwellings industry group includes 
establishments engaged in a range of general cleaning and upkeep 
services in and around buildings and dwellings. As in other subgroups, 
growth in this industry group is primarily from the increasing reliance 
of businesses and other organizations to contract out for building 
cleaning services.
    Finally, Miscellaneous Support Services includes establishments 
engaged in such activities as packaging and labeling services, 
organizing conventions, etc. Establishments in the Packaging and 
Labeling Services industry are primarily engaged in packaging client 
owned materials such as food products, pharmaceuticals, household 
cleaners, toilet preparations and hardware using a variety of automated 
or manual packaging techniques, including blister forming and 
packaging, shrink or skin wrapping, form filling and sealing, pouch 
filling and aerosol packaging. The packaging service may include the 
labeling or imprinting of the package. Although the types of 
establishments in this industry group are not similar in nature, each 
industry in its own way provides some form of support service to 
businesses and organizations.

Limitations and Constraints of the Classification

    Differences in the organization of activities within 
establishments, and differences in the economic significance of 
individual industries from country to country were the major issues 
faced in the development of a common classification structure for this 
sector. These issues were dealt with by grouping activities in a manner 
that recognized the different levels of integration and diversification 
of establishments while allowing each country to add industries where 
necessary to reflect the greater level of specialization or economic 
significance of particular industries in their national economy. Still, 
in some instances, proposed NAICS industries do not exist in all 
countries.
    This subsector is not as homogeneous across all industry groups as 
other proposed subsectors in NAICS.
    The identification of new and emerging industries is one of the 
principle goals of the NAICS project. Many users have expressed the 
wish that this goal be achieved while minimizing breaks in time series. 
However, these two objectives are more often than not conflicting, and 
the degree to which proposed NAICS industries relate to existing 
national classification systems varies from country to country.

Relationship to ISIC

    Seventeen of the NAICS industries in this subsector can be assigned 
entirely to ISIC Division 74, Other Business Activities, of the current 
International Standard Industrial Classification of all Economic 
Activities (ISIC, Revision 3) of the United Nations. Landscaping Care 
and Maintenance Services are included in ISIC Division 01, Agriculture, 
Hunting and Related Service Activities; the Travel Arrangement and 
Reservation Services industries are included in ISIC Division 63, 
Supporting and Auxiliary Transport Activities; and Carpet and 
Upholstery Cleaning Services are included in ISIC Division 93, Other 
Service Activities. The following NAICS industries cannot be assigned 
to an ISIC division without being subdivided: Employment Placement 
Agencies (casting bureaus are in Division 92, Recreational, Cultural 
and Sporting Activities in ISIC) and Miscellaneous Support Services. 
However, the discrepancies between NAICS and ISIC are minor and do not 
have a significant impact on the comparability of data at 2-digit ISIC 
level.

Changes to the National Classification

    For Canada, the proposed NAICS structure constitutes a 
restructuring and expansion of industries that are, for the most part, 
currently found in Major Group 77, Business Service Industries; 
Industry Group 995, Services to Buildings and Dwellings; and Industry 
Group 996, Travel Services, of the 1980 Canadian Standard Industrial 
Classification (CSIC). A few activities classified in other areas of 
the classification are now included in this subsector. Fifteen of the 
twenty-two NAICS industries applicable in Canada are new or redefined. 
The most important new industries are: Management Services; Document 
Preparation Services; Telephone Call Centers; Business Service Centers; 
Investigation, Guard and Armored Car Services; Security Systems 
Services, Landscaping Care and Maintenance Services; Packaging and 
Labeling Services; and Convention and Trade Show Organizers.
    The majority of proposed NAICS industries (15) relate to only one 
existing CSIC industry. In those cases, the task of linking statistics 
based on the old and new systems is relatively easy. For the remaining 
classes, this task is much more difficult since they are defined in 
terms of components of existing industries for which no data are 
available. However, many of these partial relationships are marginal in 
terms of economic activity.
    For Mexico, this subsector that includes 24 industries contains 17 
of the current CMAP classes. This increase in the number of classes 
results from the fact that there is now more specialization in Mexico 
in many service activities. Services that used to be performed in 
combination with others within a single establishment, including those 
performed as a secondary activity of the establishment, are now 
beginning to be carried out as a principal activity in establishments 
specializing in that particular service. For that reason, this new 
classification includes classes that were not even mentioned in the 
CMAP owing to their secondary status, and classes that had been 
included with other activities.

[[Page 26627]]

    The activities being incorporated into this subsector are currently 
classified, for the most part, in CMAP Branch 9510, Provision of 
Professional, Technical, and Specialized Services, excluding 
Agricultural Services. Nevertheless, in order to create the new 
subsector, some activities that had been in other branches or 
subsectors, and even in a different sector of activity, were relocated.
    From CMAP Sector 7, Transportation and Communications, fax services 
that had been classified under CMAP Class 720006, Other 
Telecommunications Services, were reclassified. They were combined with 
Photocopying Services and Business Center Services to form a new NAICS 
industry.
    From CMAP Subsector 94, Entertainment, Cultural, Recreational, and 
Athletic Services, there was a reclassification of establishments 
engaged in the hiring of personnel for cinematographic and theatrical 
production that had been included under CMAP Classes 941101, Private 
Production of Cinematographic Films; 941106 Private Services for the 
Promotion, Staging and Presentation of Artistic Productions; and 941204 
Public Services of Promotion, Staging, and Presentation of Artistic 
Productions. These recruitment agencies were combined with personnel 
placement agencies to form a single NAICS industry.
    From CMAP Subsector 97, Services Related to Agriculture, 
Stockraising, Construction, Transportation, Finance and Commerce, there 
was a reclassification of telemarketing establishments and 
establishments engaged in advance sales of tickets, that had been under 
class 975000, Financial Intermediary Services. Telemarketing services 
combined with establishments that make and receive telephone calls were 
placed in a single NAICS industry under the Administrative Support 
Services industry group. Services of establishments that sell tickets 
in advance gave rise to a new NAICS industry when these services were 
combined with hotel reservations that had been classified under CMAP 
951023, Professional, Technical, and Specialized Services Not 
Previously Mentioned.
    From CMAP Branch 9530, Drycleaning and Laundering Services, there 
was a reclassification of carpet cleaning and furniture cleaning 
services that had previously been in CMAP Class 953002, Cleaning and 
Dyeing of Carpets and Curtains. This branch was combined with carpet 
cleaning that had been under CMAP 951021, Building Cleaning Services, 
to form a new NAICS class called Carpet and Upholstery Cleaning 
Services.
    The current CMAP Class 951018, Services of Personnel Placement and 
Selection Agencies, was subdivided into three parts. Two of them 
resulted in the same number of NAICS industries, those being Temporary 
Help Services and Employee Leasing Services. The other part was 
combined with agencies for placement of personnel from television 
works, cinematography, and theaters, that had been classified under 
CMAP Subsector 94, Entertainment, Cultural, Recreational, and Athletic 
Services, to form a new NAICS industry called Employment Placement 
Agencies.
     CMAP Class 951021, Building Cleaning Services, was subdivided into 
four parts. Three of them resulted in the same number of industries in 
NAICS, and another part was combined with Carpet and Upholstery 
Cleaning Services that had been classified in CMAP 953002, Cleaning and 
Dyeing of Carpets and Curtains, to create a new NAICS industry.
    CMAP Class 951023, Other Professional, Technical, and Specialized 
Services Not Previously Mentioned, that had contained several very 
different types of services underwent a major realignment. The services 
of CMAP Class 951023 relating to this subsector were combined with 
activities that were similar in terms of their forms of production, and 
each combination produced a new NAICS class. Telephone answering 
services were combined with telemarketing services (the latter had been 
classified in the CMAP under 975000, Financial Intermediary Services); 
business center services were combined with photocopying establishments 
(the latter had been classified under CMAP Class 951017, Photocopying 
and Similar Services); and financial solvency agencies were combined 
with credit information offices. Finally, a NAICS industry was formed 
for Packaging and Labeling Services.
    For the United States, eleven of the twenty-four proposed NAICS 
industries are new. Of the eleven new industries in this sector, eight 
were created from 1987 SIC 7389, Business Services, Not Elsewhere 
Classified. 1987 SIC 7389 was a ``catchall'' category that included 
some of the fastest growing services in the U.S. economy, and that had 
no natural interpretation or usefulness. This former NEC industry is 
significantly reduced by the creation of new industries. Examples of 
the new industries that were created from 1987 SIC 7389 are: Telephone 
Call Centers; Packaging and Labeling Services; and Convention and Trade 
Show Organizers. In addition, other activities formerly included in 
1987 SIC 7389 were redistributed among the industries to create 
homogeneous industries or industry groupings. The redistributions out 
of 1987 SIC 7389 will reduce its overall size by approximately 40% of 
the establishments and receipts. In addition, the remainder are 
redistributed into NAICS industry groups that have more logic and 
coherence than the 1987 SIC 73 major group, Business Services.
    The NAICS industry group for Management and Facilities Support 
Services groups activities with similar production processes previously 
classified in 1987 SIC 8741, Management Services, and 1987 SIC 8744, 
Facilities Support Management Services. Separate industries are created 
for each.
    The NAICS industry group for Employment Services includes one 
significant change for the United States by including Temporary Help 
Services and Employee Leasing Services as new industries. These 
services are included in 1987 SIC 7363, Help Supply Services.
    The NAICS industry group for Administrative Support Services 
includes Document Preparation Services, Telephone Call Centers, 
Business Service Centers and Other Administrative Support Services as 
new industries. These services are included in 1987 SIC 7338, 
Secretarial and Court Reporting Services, and 1987 SIC 7389, Business 
Services, Not Elsewhere Classified.
    The NAICS industry group for Services to Buildings and Dwellings 
includes one previously existing industry from 1987 SIC Major Group 72, 
Personal Services (1987 SIC 7217, Carpet and Upholstery Cleaning) and 
two industries from 1987 SIC Major Group 07, Agriculture Services (1987 
SIC 0782, Lawn and Garden Services; and 1987 SIC 0783, Ornamental Shrub 
and Tree Services). A new industry for Other Services to Buildings and 
Dwellings has been created from part of 1987 SIC's 7389, Business 
Services, Not Elsewhere Classified, and 1987 SIC 7699, Repair Shops and 
Related Services, Not Elsewhere Classified.
    The NAICS industry group for Miscellaneous Support Services 
includes three new industries formed from part of 1987 SIC 7389, 
Business Services, Not Elsewhere Classified.

Achievement of Objectives

    The classification meets the objectives for the North American 
Industry Classification System (NAICS). It is comprised of industries 
that group establishments with similar production

[[Page 26628]]

processes, that is, it applies the production-oriented economic 
concept.
    The classification achieves comparability for the three 
participating countries. Based on existing data, all three countries 
expect to be able to publish data regularly or in the near future at 
the industry (4-digit) level of the structure. All countries agree on 
the detailed definitions of the industries.
    Other objectives of the NAICS project have been met. A significant 
number of new industries are established which is consistent with the 
goal of recognizing new and emerging industries.
    The industries are economically significant. Some NAICS industries 
are much larger than others, but this was necessary to ensure 
comparability among the three countries.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the NAICS industry subsector 
presented in Part XII, Section A--Attachment 1, contain less detail 
than is currently in the U.S. SIC system, and less detail than is 
required to meet important analytical requirements in the U.S. The 
three country agreement on NAICS envisions that each country may 
develop national detailed industries below the NAICS industry level, so 
long as the national detail can be aggregated to the NAICS 
classification, thus assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
industry subsector covered in Part XII of this notice. For cases where 
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Management and Support         ................  .......  .................................
                      Services:                                                                                 
XXX................    Management and Facilities    ................  .......  .................................
                        Support Services:                                                                       
XXXX...............     Management Services.......  R                   *8741  Management Services (except      
                                                                                construction management).       
XXXX...............  Facilities Support Management  E                    8744  Facilities Support Management    
                      Services.                                                 Services.                       
XXX................    Employment Services:         ................  .......  .................................
XXXX...............     Employment Placement        R                   *7361  Employment Agencies (except      
                         Agencies.                                              executive placing services).    
                                                    ................    *7819  Services Allied to Motion        
                                                                                Pictures Production (casting    
                                                                                bureaus).                       
                                                                        *7922  Theatrical Producers and         
                                                                                Miscellaneous Theatrical        
                                                                                Services (casting agencies).    
XXXX...............     Temporary Help Services...  N                   *7363  Help Supply Services (except     
                                                                                employee leasing service ).     
XXXX...............     Employee Leasing Services.  N                   *7363  Help Supply Services (except     
                                                                                temporary help service ).       
XXX................    Administrative Support       ................  .......  .................................
                        Services:                                                                               
XXXX...............     Document Preparation        N                   *7338  Secretarial and Court Reporting  
                         Services.                                              (except court reporting).       
XXXX...............     Telephone Call Centers:     ................  .......  .................................
XXXXX..............      Telephone Answering        N                   *7389  Business Services, Not Elsewhere 
                          Services.                                             Classified (telephone           
                                                                                answering).                     
XXXXX..............      Telemarketing Bureaus....  N                   *7389  Business Services, Not Elsewhere 
                                                                                Classified (telemarketing       
                                                                                bureaus and telephone           
                                                                                soliciting).                    
XXXX...............     Business Service Centers:   ................  .......  .................................
XXXXX..............      Photocopying and           R                   *2752  Commercial Printing, Lithographic
                          Duplicating Services.                                 (electrostatic, digital, and    
                                                                                nonimpact quick printing).      
                                                    ................     7334  Photocopying and Duplicating     
                                                                                Services,                       
XXXXX..............      Private Mail Centers.....  N                   *7389  Business Services, Not Elsewhere 
                                                                                Classified (private mail box    
                                                                                centers and mail box rental).   
XXXX...............     Collection Agencies.......  R                   *7322  Adjustment and Collection        
                                                                                Services (except adjustment     
                                                                                bureaus).                       
XXXX...............     Credit Bureaus............  E                    7323  Credit Reporting Services.       
XXXX...............     Other Administrative                                                                    
                         Support Services:                                                                      
XXXXX..............      Repossession Services....  N                   *7322  Adjustment and Collection        
                                                                                (adjustment bureaus).           
                                                    ................    *7389  Business Services, Not Elsewhere 
                                                                                Classified (recovery and        
                                                                                repossession services).         
XXXXX..............      Court Reporting and        N                   *7338  Secretarial and Court Reporting  
                          Stenotype Services.                                   (except secretarial).           
XXXXX..............      All Other Administrative   N                   *7389  Business Services, Not Elsewhere 
                          Support Services.                                     Classified (administrative      
                                                                                support services except         
                                                                                telephone answering,            
                                                                                telemarketing bureaus, private  
                                                                                mail centers and repossession   
                                                                                services).                      
XXX................      Travel Arrangement and     ................  .......  .................................
                          Reservation Services:                                                                 
XXXX...............     Travel Agencies...........  E                    4724  Travel Agencies.                 
XXXX...............     Tour Operators............  E                    4725  Tour Operators.                  
XXXX...............     Other Travel Arrangement    ................     4729  Arrangement of Passenger         
                         and Reservation Services.                              Transportation, Not Elsewhere   
                                                                                Classified.                     
XXXXX..............      Convention and Visitor     N                   *7389  Business Services, Not Elsewhere 
                          Bureaus.                                              Classified (convention and      
                                                                                visitor bureaus, tourist        
                                                                                information bureaus).           
XXXXX..............      All Other Travel           N                   *7389  Business Services, Not Elsewhere 
                          Arrangement and                                       Classified (reservation systems:
                          Reservation Services.                                 hotel & restaurants).           
                                                    ................    *7999  Amusement and Recreation         
                                                                                Services, Not Elsewhere         
                                                                                Classified (ticket agencies).   
XXX................    Security and Investigation   ................  .......  .................................
                        Services:                                                                               
XXXX...............     Investigation, Guard and    ................  .......  .................................
                         Armored Car Services:                                                                  

[[Page 26629]]

                                                                                                                
XXXXX..............      Investigation Services...  N                   *7381  Detective and Armored Car        
                                                                                Services (detective services).  
XXXXX..............      Security Guards and        N                   *7381  Detective and Armored Car        
                          Patrol Services.                                      Services (guard services).      
XXXXX..............      Armored Car Services.....  N                   *7381  Detective and Armored Car        
                                                                                Services (armored car services).
XXXX...............     Security Systems Services:  ................  .......  .................................
XXXXX..............      Security Systems           E                    7382  Security Systems Services.       
                          Services, except                                                                      
                          Locksmiths.                                                                           
XXXXX..............      Locksmiths...............  N                   *7699  Repair Shops and Related         
                                                                                Services, Not Elsewhere         
                                                                                Classified (locksmith shops).   
XXX................    Services to Buildings and    ................  .......  .................................
                        Dwellings:                                                                              
XXXX...............     Exterminating and Pest      R                   *7342  Disinfecting and Pest Control    
                         Control Services.                                      Services (exterminating and pest
                                                                                control).                       
XXXX...............     Janitorial Services.......  R                   *7342  Disinfecting and Pest Control    
                                                                                Services (except exterminating).
                                                    ................     7349  Building Maintenance Services,   
                                                                                Not Elsewhere Classified.       
                                                    ................    *4581  Airports, Flying Fields, and     
                                                                                Airport Terminal Services       
                                                                                (airplane cleaning and          
                                                                                janitorial services).           
XXXX...............     Landscaping Care and        ................  .......  .................................
                         Maintenance Services:                                                                  
XXXXX..............      Lawn and Garden Services.  E                    0782  Lawn and Garden Services.        
XXXXX..............      Ornamental Shrub and Tree  E                    0783  Ornamental Shrub and Tree        
                          Services.                                             Services.                       
XXXX...............     Carpet and Upholstery       E                    7217  Carpet and Upholstery Cleaning.  
                         Cleaning Services.                                                                     
XXXX...............  Other Services to Buildings    N                   *7389  Business Services, Not Elsewhere 
                      and Dwellings.                                            Classified (swimming pool       
                                                                                cleaning and maintenance).      
                                                    ................    *7699  Repair Shops and Related         
                                                                                Services, Not Elsewhere         
                                                                                Classified (furnace, duct,      
                                                                                chimney cleaning and furnace    
                                                                                cleaning services).             
XXX................  Miscellaneous Support                                     .................................
                      Services:                                                                                 
XXXX...............     Packaging and Labeling      N                   *7389  Business Services, Not Elsewhere 
                         Services.                                              Classified (packaging and       
                                                                                labeling services).             
XXXX...............     Convention and Trade Show   ................    *7389  Business Services, Not Elsewhere 
                         Organizers.                                            Classified (convention and trade
                                                                                show services).                 
XXXX...............     Other Miscellaneous         N                   *7389  Business Services, Not Elsewhere 
                         Support Services.                                      Classified (business support    
                                                                                services except packaging and   
                                                                                labeling, convention and trade  
                                                                                shows services, convention and  
                                                                                visitor bureaus, tourist        
                                                                                information bureaus).           
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E-existing industry; N-new industry; R-revised industry; and *  
  means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                                 



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description               1997 U. S. description       
----------------------------------------------------------------------------------------------------------------
0782....................................  Lawn and Garden Services........  Lawn and Garden Services.           
0783....................................  Ornamental Shrub and Tree         Ornamental Shrub and Tree Services. 
                                           Services.                                                            
2752@...................................  Commercial Printing,                                                  
                                           Lithographic:                                                        
                                            Electrostatic Digital and       Photocopying and Duplicating        
                                             Nonimpact Quick Printing.       Services (pt).                     
4581....................................  Airport, Flying Fields, and                                           
                                           Airport Terminal Services:                                           
                                            Aircraft Cleaning and           Janitorial Services (pt).           
                                             Janitorial Services.                                               
4724....................................  Travel Agencies.................  Travel Agencies.                    
4725....................................  Tour Operators..................  Tour Operators.                     
4729....................................  Arrangement of Passenger          Other Travel Arrangement and        
                                           Transportation, Not Elsewhere     Reservation Services (pt).         
                                           Classified.                                                          
7217....................................  Carpet and Upholstery Cleaning..  Carpet and Upholstery Cleaning.     
7322....................................  Adjustment and Collection                                             
                                           Services:                                                            
                                            Collection Services...........  Collection agencies.                
                                            Adjustment Bureaus............  Repossession Services (pt).         
7323....................................  Credit Reporting Services.......  Credit Bureaus.                     
7334@...................................  Photocopying and Duplicating      Photocopying and Duplicating        
                                           Services.                         Services (pt).                     
7338....................................  Secretarial and Court Reporting                                       
                                           Services:                                                            
                                            Secretarial Services..........  Document Preparation Services.      
                                            Court Reporting Services......  Court Reporting and Stenotype       
                                                                             Services.                          
7342....................................  Disinfecting and Pest Control                                         
                                           Services:                                                            
                                            Disinfecting Services.........  Janitorial Services (pt).           
                                            Exterminating and Pest Control  Exterminating and Pest Control      
                                             Services.                       Services.                          
7349....................................  Building Cleaning and             Janitorial Services (pt).           
                                           Maintenance Services, Not                                            
                                           Elsewhere Classified.                                                
7361@...................................  Employment Agencies:                                                  
                                            Executive Placing Services....  Human Resources Consulting (pt)     
                                                                             (Included in Professional,         
                                                                             Scientific and Technical Services  
                                                                             Subsector)                         

[[Page 26630]]

                                                                                                                
                                            Except Executive Placing        Employment Placement Agencies (pt). 
                                             Services.                                                          
7363....................................  Help Supply Services:                                                 
                                            Temporary Help Supply.........  Temporary Help Services.            
                                            Employee Leasing Services.....  Employee Leasing Services.          
7381....................................  Detective, Guard, and Armored                                         
                                           Car Services:                                                        
                                            Detective Services............  Investigation Services.             
                                            Guard Services................  Security Guards and Patrol Services.
                                            Armored Car Services..........  Armored Car Services.               
7382....................................  Security Systems Services.......  Security Systems Services.          
7389@...................................  Business Services, Not Elsewhere                                      
                                           Classified:                                                          
                                            Telephone Answering Services..  Telephone Answering Services.       
                                            Telemarketing Bureaus and       Telemarketing Bureaus.              
                                             Telephone Soliciting Services.                                     
                                            Private Mail Centers and Mail   Private Mail Centers.               
                                             Box Rental.                                                        
                                            Recovery and Repossess........  Repossession Services (pt).         
                                            Packaging and Labeling          Packaging and Labeling Services.    
                                             Services.                                                          
                                            Swimming Pool Cleaning and      Other Services to Dwellings and     
                                             Maintenance.                    Buildings (pt).                    
                                            Hotel and Restaurant            Other Travel Arrangement and        
                                             Reservation Services.           Reservation Services.              
                                            Convention and Trade Show       Trade Show and Convention           
                                             Services.                       Organizers.                        
                                            Convention and Visitors         Convention and Visitors Bureaus.    
                                             Bureaus and Tourist                                                
                                             Information Service.                                               
                                            Administrative Support          All Other Administrative Support    
                                             Services, Except Telephone      Services.                          
                                             Answering, Telemarketing                                           
                                             Bureaus, Private Mail                                              
                                             Centers, and Repossession                                          
                                             Services.                                                          
                                            Business Support Services,      Other Miscellaneous Support         
                                             Except Packaging and Labeling   Services.                          
                                             Services.                                                          
                                            Convention and Trade Show       Convention and Trade Show           
                                             Services.                       Organizers.                        
7699....................................  Repair Shops and Related                                              
                                           Services, Not Elsewhere                                              
                                           Classified:                                                          
                                            Locksmith Shops...............  Locksmiths.                         
                                            Furnace Ducts, Chimney and      Other Services to Dwellings and     
                                             Gutter Cleaning Services.       Buildings (pt).                    
7819....................................  Services Allied to Motion                                             
                                           Pictures:                                                            
                                            Casting Bureaus...............  Employment Placement Agencies (pt.).
7922....................................  Theatrical Producers and                                              
                                           Services:                                                            
                                            Casting Agencies..............  Employment Placement Agencies (pt.).
7999....................................  Amusement and Recreation                                              
                                           Services, Not Elsewhere                                              
                                           Classified:                                                          
                                            Ticket Agencies...............  Other Travel Arrangement and        
                                                                             Reservation Services (pt).         
8741@...................................  Management Services:                                                  
                                            Construction Management.......  Construction Sector.                
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means times series break has been created that is greater than 3% 
  of the 1992 revenues for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere Classified.    



Description of Changes to the U.S. System

    Nineteen new industries are included in this subsector. Ten of the 
new industries were created by breaking apart old U.S. SIC 7389, 
Business Services, Not Elsewhere Classified. These are new and growing 
industries. New industries were created for:
    Temporary Help Services from part of 1987 SIC 7363, Help Supply 
Services. This was requested by the industry and is supported by 
production process principles.
    Employee Leasing Services from part of 1987 SIC 7363, Help Supply 
Services. This was requested by the industry and is supported by 
production process principles.
    Document Preparation Services from part of 1987 SIC 7338, 
Secretarial and Court Reporting Services. This split provides for a 
better production process based industry.
    Telephone Answering Services from part of 1987 SIC 7389, Business 
Services, Not Elsewhere Classified. This industry is based on 
production process principles.
    Telemarketing Bureaus from part of 1987 SIC 7389, Business 
Services, Not Elsewhere Classified. This industry is based on 
production process principles.
    Private Mail Centers from part of 1987 SIC 7389, Business Services, 
Not Elsewhere Classified. This industry is based on production process 
principles.
    Repossession Services from part of 1987 SIC 7322, Adjustment and 
Collection Services, and part of 1987 SIC 7389, Business Services, Not 
Elsewhere Classified. This industry is based on production process 
principles.
    Court Reporting and Stenotype Services from part of 1987 SIC 7338, 
Secretarial and Court Reporting Services. This split provides for a 
better production process industry.
    All Other Administrative Support Services from part of 1987 SIC 
7389, Business Services, Not Elsewhere Classified. This provides for a 
residual industry that includes related activities.
    Other Travel Arrangement and Reservation Services from part of 1987 
SIC 7389, Business Services, Not Elsewhere Classified; part of 1987 SIC 
7999, Amusement and Recreation Services, Not Elsewhere Classified; and 
all of 1987 SIC 4729, Arrangement of Passenger Transportation, Not 
Elsewhere Classified. This change combines activities having similar 
production processes.
    Investigation Service from part of 1987 7381, Detective and Armored 
Car

[[Page 26631]]

Services. This split provides for a better production process industry.
    Security Guard and Patrol Services from part of 1987 SIC 7381, 
Detective and Armored Car Services. This split provides for a better 
production process industry.
    Armored Car Services from part of 1987 SIC 7381, Detective and 
Armored Car Services. This split provides for a better production 
process industry.
    Locksmiths from part of 1987 SIC 7699, Repair Ships and Related 
Services, NEC. This split was requested by the industry and is 
supported by production process based principles.
    Other Services to Buildings and Dwellings from part of 1987 SIC 
7389, Business Services, Not Elsewhere Classified, and 1987 SIC 7699, 
Repair Shops and Related Services, Not Elsewhere Classified. This 
industry is supported by production process principles and improves 
international comparability.
    Packaging and Labeling Services from part of 1987 SIC 7389, 
Business Services, Not Elsewhere Classified. This industry is supported 
by production process principles.
    Trade Show and Convention Organizers from part of 1987 SIC 7389, 
Business Services, Not Elsewhere Classified. This industry is supported 
by production process principles.
    Convention and Visitors Bureaus from part of 1987 SIC 7389, 
Business Services, Not Elsewhere Classified. This was requested by the 
industry and is supported by production process principles.
    Other Miscellaneous Support Services from part of 1987 SIC 7389, 
Business Services, Not Elsewhere Classified. This provides for a 
residual industry that includes related activities.
    Six industries included in this subsector were revised:
    Construction management services were transferred from 1987 SIC 
8741, Management Services, to the Construction Sector. This change was 
made to achieve international comparability and to combine activities 
having similar inputs.
    Casting services were transferred from 1987 SIC 7819, Services 
Allied to Motion Picture Production, and from 1987 SIC 7922, Theatrical 
Producers and Miscellaneous Theatrical Services, to Employment 
Placement Agencies to form a better production process industry.
    Quick printers that primarily use electrostatic, digital and 
nonimpact technologies were transferred from 1987 SIC 2752, Commercial 
Printing, Lithographic, based on industry requests. The activity was 
placed with Photocopying and Duplicating Services because the 
technologies were similar.
    Adjustment services were transferred from 1987 SIC 7322, Adjustment 
and Collection Services, to Repossession Services to form a better 
production process industry.
    Exterminating services were transferred from 1987 SIC 7342, 
Disinfecting and Exterminating Services, to Exterminating and Pest 
Control Services to form a better production process industry.
    Disinfecting services, part of 1987 SIC 7342, Disinfecting and 
Exterminating Services, was combined with 1987 SIC 7349, Building 
Cleaning and Maintenance Services, Not Elsewhere Classified, to form a 
production process industry titled Janitorial Services.

Part XIII--Proposed New Industry Structure for Air Transportation, 
Rail Transportation, Water Transportation, Truck Transportation, 
Transit and Ground Passenger Transportation, Pipeline 
Transportation, Scenic and Sightseeing Transportation, and Support 
Activities for Transportation

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 23

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

Air Transportation
Rail Transportation
Water Transportation
Truck Transportation
Transit and Ground Passenger Transportation
Pipeline Transportation
Scenic and Sightseeing Transportation
Support Activities for Transportation

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on November 8 and November 9, 1995 in 
Washington, D.C.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    11/9/95
Mexico..............................  /S/ Enrique Ordaz......    11/9/95
United States.......................  /S/ Jack E. Triplett...    11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Air Transportation
XXX  Scheduled Air Transportation
XXXX  Scheduled Air Transportation
XXX  Nonscheduled Air Transportation
XXXX  Nonscheduled Chartered Air Transportation
XXXX  Nonscheduled Specialty Air Transportation
XX  Rail Transportation
XXX  Rail Transportation
XXXX  Rail Transportation
XX  Water Transportation
XXX  Deep Sea, Coastal and Great Lakes Water Transportation
XXXX  Deep Sea, Coastal and Great Lakes Water Transportation
XXX  Inland Water Transportation
XXXX  Inland Water Transportation
XX  Truck Transportation
XXX  General Freight Trucking
XXXX  General Freight Trucking, Local
XXXX  General Freight Trucking, Long Distance
XXX  Specialized Freight Trucking
XXXX  Used Household and Office Goods Moving
XXXX  Specialized Freight (except Used Goods) Trucking, Local
XXXX  Specialized Freight (except Used Goods) Trucking, Long 
Distance
XX  Transit and Ground Passenger Transportation
XXX  Urban Transit Systems
XXXX  Urban Transit Systems
XXX  Interurban and Rural Bus Lines
XXXX  Interurban and Rural Bus Lines
XXX  Taxi and Limousine Service
XXXX  Taxi Service
XXXX  Limousine Service
XXX  School and Employee Bus Industry
XXXX  School and Employee Bus Industry
XXX  Charter Bus Industry
XXXX  Charter Bus Industry
XXX  Other Transit and Ground Passenger Transportation
XXXX  Other Transit and Ground Passenger Transportation
XX  Pipeline Transportation
XXX  Pipeline Transportation of Crude Oil
XXXX  Pipeline Transportation of Crude Oil
XXX  Pipeline Transportation of Natural Gas
XXXX  Pipeline Transportation of Natural Gas
XXX  Other Pipeline Transportation
XXXX  Pipeline Transportation of Refined Petroleum Products
XXXX  All Other Pipeline Transport
XX  Scenic and Sightseeing Transportation
XXX  Scenic and Sightseeing Transportation, Land
XXXX  Scenic and Sightseeing Transportation, Land
XXX  Scenic and Sightseeing Transportation, Water
XXXX  Scenic and Sightseeing Transportation, Water

[[Page 26632]]

XXX  Scenic and Sightseeing Transportation, Other
XXXX  Scenic and Sightseeing Transportation, Other
XX  Support Activities for Transportation
XXX  Support Activities for Air Transportation
XXXX  Airport Operations
XXXX  Other Support Activities for Air Transportation
XXX  Support Activities for Rail Transportation
XXXX  Support Activities for Rail Transportation
XXX  Support Activities for Water Transportation
XXXX  Port and Harbor Operations
XXXX  Marine Cargo Handling
XXXX  Navigational Services to Shipping
XXXX  Other Support Activities for Water Transportation
XXX  Support Activities for Road Transportation
XXXX  Motor Vehicle Towing
XXXX  Other Support Activities for Road Transportation
XXX  Freight Transportation Arrangement
XXXX  Freight Transportation Arrangement
XXX  Storage Facilities
XXXX  Refrigerated Storage Facilities
XXXX  Farm Product Storage Facilities
XXXX  Other Storage Facilities
XXX  Other Support Activities for Transportation
XXXX  Other Support Activities for Transportation
    Attachment 2--North American Industry Classification System
    Draft Classification for:

Air Transportation
Rail Transportation
Water Transportation
Truck Transportation
Transit and Ground Passenger Transportation
Pipeline Transportation
Scenic and Sightseeing Transportation
Support Activities for Transportation

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industrial classification for these 
industries.
    The draft classification provides for the subsectors Air 
Transportation, Rail Transportation, Water Transportation, Truck 
Transportation, Transit and Ground Passenger Transportation, Pipeline 
Transportation, Scenic and Sightseeing Transportation and Support 
Activities for Transportation. These subsectors are further subdivided 
into twenty-six industry groups and thirty-nine industries.

A General Outline

    Establishments in the Transportation sector transport people and 
goods, and provide services to these establishments. The structure 
distinguishes these two basic types of activities, providing a 
subsector for each mode of transportation and a subsector for 
establishments providing support activities for transportation. In 
addition, there is a subsector for establishments that provide 
passenger transportation for scenic and sightseeing purposes.
    The modes of transportation are air, rail, water, trucking, transit 
and ground passenger, and pipeline. These are further subdivided 
according to the way in which businesses in each mode organize their 
establishments. The structure also reflects the degree of similarity of 
the industrial structures of the three countries.
    An alternative structure was considered that would group services 
to a mode of transportation in the same subsector as the establishments 
carrying out the modal transportation activity. For example, support 
activities for air transportation would be an industry group in the 
same subsector as scheduled and nonscheduled air transportation. It was 
decided not to adopt this approach, because, first, many support 
activities for transportation are inherently multi-modal, such as 
freight transportation arrangement, or have multi-modal aspects. 
Secondly, there are production process similarities among the support 
activities. In any case, the structure allows the re-aggregation of the 
modal services with the modes of transportation.
    In Air Transportation, the classification distinguishes scheduled 
from nonscheduled air transportation. Establishments included in 
Scheduled Air Transportation must operate flights even if only 
partially loaded. Nonscheduled operations also have more freedom to 
take off and land during non-peak time slots at busy airports. 
Nonscheduled Air Transportation is subdivided into charter and 
specialty activities. The former comprises fairly specialized 
establishments engaged in transporting freight and people, using 
equipment designed for those purposes. Specialty air transportation 
establishments use small, general purpose aircraft to provide a variety 
of specialized flying services, with none predominating (if the 
establishment is specialized in one activity, it is placed elsewhere in 
the classification, e.g., a specialist crop dusting establishment is 
classified in support activities for agriculture). Consideration was 
given to separating passenger from freight in each of the air 
transportation industries, but too many establishments provide both 
services to allow this distinction in a NAICS establishment 
classification; it is preferable to collect such data using the 
commodity classification or at the national detail level as the United 
States will do.
    The classification does not provide for any subdivision of Rail 
Transportation. In Mexico, most rail services are currently provided by 
a large national rail company that cannot be subdivided into 
establishments carrying out various processes. This is likely to change 
in the future, but the eventual establishment structure cannot be 
predicted now. This prevents the definition of any detail in Rail 
Transportation.
    In Water Transportation, the underlying industrial structures in 
the three countries are quite different. In addition, the existing 
concepts used in national classifications are dissimilar. The only 
breakdown of water transportation that could be agreed to was inland 
(other than Great Lakes) and all other. This is a meaningful production 
process distinction in all countries, but inland shipping is an 
economically significant activity only in the United States. Each 
country can use national detail to define additional industrial detail.
    The Truck Transportation subsector is first subdivided into general 
freight trucking and specialized freight trucking. Specialized freight 
transportation is the transportation of articles that, because of size, 
weight, shape or other inherent characteristics require specialized 
equipment for transportation. Each of these industry groups is further 
subdivided based on distance traveled. Local trucking establishments 
primarily carry goods within a single metropolitan area and its 
hinterland. Long distance establishments carry goods between 
metropolitan areas. This distinction reflects differences in equipment 
used, type of load carried, and scheduling, terminal and other 
networking services. Long-distance trucking is of particular interest 
in the context of North American free trade, since it is this group of 
establishments that will be able to compete internationally. The 
Specialized Freight Trucking industry group provides an additional 
industry for the transportation of used household and office goods, 
whether local or long distance, because such establishments do not 
specialize on a distance basis, but on the transport of such goods.
    The Transit and Ground Passenger Transportation subsector includes 
a variety of passenger transportation activities, such as urban transit 
systems, taxis and so on. These activities are distinguished based on 
such process factors as whether routes are scheduled, run over fixed 
routes, and charged on a per-seat or per-vehicle basis.

[[Page 26633]]

    The Pipeline Transportation subsector is subdivided along product 
lines because pipelines are designed to carry specific products. 
Industries have been created to cover the pipeline transportation of 
crude oil, natural gas, refined petroleum products, and other products.
    The Scenic and Sightseeing Transportation subsector activities have 
a production process distinct from passenger transportation carried out 
for the purpose of transportation. The process does not emphasize 
efficient transportation; in fact, such activities often use obsolete 
vehicles such as steam trains, to provide some extra ambience. The 
activity is local in nature, usually involving a same-day return to the 
point of departure. Some examples are steam train excursions, urban 
horse-drawn tourist excursions and hot air balloons. Activities that 
are sporting in nature, and involve participation by the customer, such 
as white-water rafting, are generally excluded unless they impose a 
significant impact on the transportation infrastructure, such as 
charter fishing, which is included in the Scenic and Sightseeing 
Transportation, Water industry.
    The Support Activities for Transportation subsector includes an 
industry group for services specific to each mode of transportation, 
and for the multi-modal activities of freight transportation 
arrangement, storage facilities and other support activities for 
transportation. The rental and leasing of transportation equipment, 
without operator, is included in a separate sector in NAICS.

Limitations and Constraints of the Classification

    In the transportation industries proposed structure, most 
activities that were identified in one country exist in the others. 
However, often an activity is not carried out by specialized 
establishments in all countries. For example, a broad NAICS industry 
was created for Rail Transportation, because the various activities 
included here are carried out by the same establishments in Mexico.
    For those users requiring detailed commodity information, each 
country will publish information on the products of these industries. 
Efforts are also underway to harmonize the commodity classifications to 
allow for greater comparability of these statistics.

Relationship to ISIC

    Most of the NAICS 4-digit industries in these subsectors are 
contained in ISIC Divisions 60, Land Transport; Transport via 
Pipelines; Division 61, Water Transport; Division 62, Air Transport; 
Division 63, Supporting and Auxiliary Transport Activities; Activities 
of Travel Agencies; and Division 64, Post and Telecommunication 
Activities, of the current International Standard Industrial 
Classification of all Economic Activities (ISIC, Revision 3) of the 
United Nations. Thirty-two of the thirty-nine NAICS 4-digit industries 
in these subsectors are contained entirely within these divisions. 
There are, however, some differences between the two systems.
    NAICS includes the storage of natural gas with the pipeline 
transportation of natural gas, because the storage is usually done by 
the pipeline establishments, and because a pipeline is inherently a 
network in which all the nodes are inter-dependent. ISIC includes the 
storage of natural gas in Storage and Warehousing. NAICS includes ship 
repair and maintenance, not done in a shipyard, in Other Support 
Activities for Water Transportation. An example would be a floating 
drydock service in a harbour. ISIC includes these in the Building and 
Repairing of Ships Industry in Manufacturing. The five other NAICS 
industries that cannot be assigned to an ISIC Division without being 
sub-divided are Nonscheduled Specialty Air Transportation; Scenic and 
Sightseeing Transportation, Water; Other Support Activities for Air 
Transportation; Support Activities for Rail Transportation and 
Navigational Services to Shipping.
    ISIC includes some activities in Supporting and Auxiliary Transport 
Activities that NAICS classifies in other sectors. These include the 
operation of parking lots and garages and the operation of travel 
agencies and tour operators.

Some Changes to the National Classifications

    For Canada, the coverage of the NAICS Transportation sector is 
largely the same as the current Canadian classification's Division G, 
Transportation and Storage Industries. Air courier activities, in Air 
Transport Industries in the Canadian Classification, are in the Postal 
Service and Couriers subsector of NAICS. Scenic and Sightseeing 
Transportation includes some activities, such as charter fishing, now 
found in Services. Other Support Activities for Water Transportation 
includes non-factory ship repairing, now classified in the Shipbuilding 
and Repair industry in Manufacturing. The Motor Vehicle Towing 
Industry, in Transportation in NAICS, is in Retail Trade in the 
Canadian classification. Customs Brokers are in Freight Transportation 
Arrangement in NAICS but in Business Services in the Canadian 
classification. The contract maintenance of roads, bridges and tunnels 
is in Other Service Industries Incidental to Transportation in the 
Canadian classification, but not in NAICS. Rental and leasing, without 
operator, of transportation equipment other than motor vehicles is in 
Transportation in the Canadian classification, but is grouped with the 
rental and leasing of other equipment in NAICS. The structure of this 
NAICS subsector is similar to that of the Canadian classification, 
except that services to transportation are arranged modally in the 
latter. The amount of detail is similar.
    For Mexico, the Transportation subsectors are largely the same as 
the current Mexican classification's Transportation subsector, CMAP 71; 
which includes Services Related to Land Transport, CMAP 9731; Services 
Related to Water Transport, CMAP 9732; Services Related to Air 
Transport, CMAP 9733; and Storage and Refrigeration Services, CMAP 
979002. Pipeline Transportation of Crude Oil and Natural Gas is 
included in CMAP 220000, Extraction of Crude Oil and Natural Gas. Other 
Pipeline Transportation is included in Manufacturing (parts of CMAP's 
351100, Manufacture of Basic Petrochemicals, and 353000, Petroleum 
Refining). Non-factory repair and maintenance of aircraft is included 
in Repair and Maintenance in CMAP 961104, Transport Equipment Repair 
and Maintenance. Customs Brokers are in Freight Transportation 
Arrangement in NAICS but in subsector 9510, Professional, Technical and 
Specialized Services, excluding Agricultural Services, in the Mexican 
classification. The contract maintenance of roads, bridges and tunnels 
is in Services Related to Land Transport in the Mexican classification, 
but not in NAICS. Rental and leasing, without operator, of 
transportation equipment is in Transportation in the CMAP, but is 
grouped with the rental and leasing of other equipment in NAICS. The 
structure of NAICS adds pipelines and services to transportation to the 
Transportation Sector. These activities are in other sectors in CMAP. 
The amount of detail of these NAICS subsectors is similar to that of 
the corresponding areas of the Mexican classification.
    For the United States, the coverage of the Transportation 
subsectors is largely contained in Division E, Transportation

[[Page 26634]]

and Public Utilities of the 1987 SIC. While NAICS industries are much 
broader than the 1987 SIC, the U.S. has maintained most of the 1987 SIC 
industries in its NAICS 5-digit detail. Air transportation has been 
separated into industries based on the type of operation--scheduled, 
charter, specialty. This involves adding an industry for Nonscheduled 
Specialty Air Transportation that is included in 1987 SIC 4522, Air 
Transportation, Nonscheduled. This is being added by the U.S. to 
improve the comparability with Canada and Mexico. NAICS also classifies 
air ambulance activity in the health sector rather than these 
subsectors.
    Marina establishments that are included in 1987 SIC 4493, Marinas, 
are included in the NAICS Recreation, Amusement, and Gambling 
subsector. These changes are agreed to by the U.S. to improve 
international comparability with Mexico and Canada.
    Truck Transportation is separated first into general freight and 
specialized freight. This distinction is principally based on the type 
of vehicle with general freight being hauled by standard vans and 
containers. General Freight Trucking is then broken down between local 
and long-distance. Specialized Freight Trucking is separated into Used 
Household and Office Goods Moving; Specialized Freight (except Used 
Goods) Trucking, Local; and Specialized Freight (except Used Goods) 
Trucking, Long-Distance. The household and office goods movers are 
separated because of the substantial network of establishments that has 
developed to deal with local and long-distance moving and the 
associated storage. In this area, the same establishment provides both 
local and long-distance services. Other specialized freight 
establishments generally limit their services to either local or long-
distance hauling. This is a change from the existing classifications 
(1987 SIC 4212, Local Trucking Without Storage; 4213, Trucking, Except 
Local; and 4214, Local Trucking With Storage) that include storage as a 
criteria in the classifications. The collection of refuse and garbage 
is included in 1987 SIC 4212, Local Trucking Without Storage, but this 
activity will be included in the Utilities subsector.
    The activities included in 1987 SIC 4215, Courier Services, Except 
by Air; 1987 SIC 4311, United States Postal Service; and SIC 4513, Air 
Courier Services, will be included in the NAICS subsectors, Postal 
Services and Couriers.
    The remaining mode-specific subsector, Transit and Ground Passenger 
Transportation, includes commuter transportation and highway-based 
passenger transportation. In this subsector, the principal splits 
identify scheduled transportation as separate from nonscheduled 
transportation. The scheduled transportation industry groups are Urban 
and Suburban Transit Systems, Interurban and Rural Bus Lines, School 
and Employee Bus Industry. The nonscheduled industry groups are Charter 
Bus Industry; Taxi and Limousine Service; and Other Transit and Ground 
Passenger Transportation. The School and Employee Bus Industry was 
changed from 1987 SIC 4151, School Buses, to introduce the employee 
transport that is included in 1987 SIC 4119, Local Passenger 
Transportation, Not Elsewhere Classified. The Charter Bus industry 
combines the local and long-distance industries of the existing 
classification system, 1987 SIC 4141, Local Bus Charter Service, and 
4142 Bus Charter Service, Except Local, because the production process 
and the equipment are similar. The change includes classifying 
ambulance services, included in 1987 SIC 4119, Local Passenger 
Transportation, Not Elsewhere Classified, as health services in NAICS.
    The Scenic and Sightseeing Transportation subsector is separated 
into three industries based on the mode--land, water, and other.
    The Support Activities for Transportation subsector includes all 
services to transportation but is separated by type of mode serviced. 
In the 1987 SIC, support activities were included in the same major 
group as the type of mode serviced.
    The Support Activities for Rail Transportation industry is changed 
to include all of the services to the rail industry. This 
classification includes rail related activities included in 1987 SIC 
4013, Railroad Switching and Terminal Establishments; SIC 4741, Rental 
of Railroad Cars; and SIC 4789, Transportation Services, Not Elsewhere 
Classified.
    Travel agents and tour operators, currently included in 1987 SIC 
4724, Travel Agencies, and SIC 4725, Tour Operators, respectively, will 
be included in the Management and Support Services subsector in NAICS.

Achievement of Objectives

    The classification meets the objectives for the North American 
Industry Classification System (NAICS). It includes industries that 
group establishments with similar production processes, that is, it 
applies the production-oriented economic concept. The hierarchical 
structure of the classification also follows the production concept at 
each level.
    Another objective of the NAICS project is the delineation of 
service industries. The transportation industries subsectors provide 
services, so the achievement of a common North American classification, 
with a reasonable amount of detail, satisfies that objective.
    The objective of delineating new and emerging industries is not as 
relevant in this sector as in others, as it is relatively mature in its 
industrial structure.
    The industries have high specialization ratios, and they are, in 
most cases, economically significant in all three countries. The detail 
(4-digit) level and structure of the classification are balanced in 
size. This enhances the classification's suitability for sampling, 
data-publishing and other aspects of survey operations. Finally, while 
disruptions to time series exist, they have been minimized.
    The classification achieves comparability for the three 
participating countries. All countries agree on the detailed 
definitions of the industries.

Section B--Annex United States National Industry Detail

    As explained in the structure presentation of this notice, for a 
number of reasons 4-digit industries in the eight NAICS industry 
subsectors in Part XIII, Section A--Attachment I, contain less detail 
than is currently in the U.S. SIC system, and less detail than is 
required to meet important analytical requirements in the U.S. SIC 
system. The three country agreement on NAICS envisions that each 
country may develop national detailed industries below the NAICS 
industry level, so long as the national detail can be aggregated to the 
NAICS classification, thus assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the eight 
NAICS subsectors covered in Part XIII of this notice. For cases where 
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

[[Page 26635]]



                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Air Transportation                                                                         
XXX................    Scheduled Air                                                                            
                        Transportation:                                                                         
XXXX...............     Scheduled Air                                                                           
                         Transportation:                                                                        
XXXXX..............      Scheduled Passenger Air    N                   *4512  Air Transportation, Scheduled    
                          Transportation.                                       (passenger).                    
XXXXX..............      Scheduled Freight Air      N                   *4512  Air Transportation, Scheduled    
                          Transportation.                                       (freight).                      
XXX................    Nonscheduled Air                                                                         
                        Transportation:                                                                         
XXXX...............     Nonscheduled Chartered Air                                                              
                         Transportation:.                                                                       
XXXXX..............      Nonscheduled Chartered     N                   *4522  Air Transportation, Nonscheduled 
                          Passenger Air                                         (passenger).                    
                          Transportation.                                                                       
XXXXX..............      Nonscheduled Chartered     N                   *4522  Air Transportation, Nonscheduled 
                          Freight Air                                           (freight).                      
                          Transportation.                                                                       
XXXX...............     Nonscheduled Specialty Air  N                          Establishments that use small,   
                         Transportation.                                        general purpose aircraft to     
                                                                                provide a variety of specialized
                                                                                flying services, with none of   
                                                                                them predominating, such as the 
                                                                                following:                      
                                                    ................    *0721  Crop Planting, Cultivating, and  
                                                                                Protecting (crop dusting).      
                                                    ................    *0851  Forestry Services (aerial forest 
                                                                                fighting).                      
                                                    ................    *1382  Oil and Gas Field Exploration    
                                                                                Services (aerial geophysical    
                                                                                exploration).                   
                                                    ................    *4522  Air Transportation, Nonscheduled 
                                                                                (mixed operations).             
                                                    ................    *7319  Advertising, Not Elsewhere       
                                                                                Classified (aerial advertising).
                                                    ................    *7335  Commercial Photography (aerial   
                                                                                photography).                   
                                                    ................    *7997  Membership Sports and Recreation 
                                                                                Clubs (membership aviation      
                                                                                clubs).                         
                                                    ................    *8299  Schools and Educational Services,
                                                                                Not Elsewhere Classified (flight
                                                                                school).                        
                                                    ................    *8713  Surveying Services (aerial       
                                                                                surveying).                     
XX.................  Rail Transportation:                                                                       
XXX................    Rail Transportation:                                                                     
XXXX...............     Rail Transportation:                                                                    
XXXXX..............      Line-Haul Railroads......  E                    4011  Railroads, Line-Haul Operating.  
XXXXX..............      Short Line Railroads.....  N                   *4013  Railroad Switching and Terminal  
                                                                                Establishments (belt line and   
                                                                                logging railroads).             
XX.................  Water Transportation:                                                                      
XXX................    Deep Sea, Coastal and Great                                                              
                        Lakes Water                                                                             
                        Transportation:                                                                         
XXXX...............     Deep Sea, Coastal and                                                                   
                         Great Lakes Water                                                                      
                         Transportation:                                                                        
XXXXX..............      Deep Sea Freight           E                    4412  Deep Sea Foreign Transportation  
                          Transportation                                        of Freight.                     
XXXXX..............        Deep Sea Passenger       R                   *4481  Deep Sea Transportation of       
                             Transportation                                     Passengers, Except by Ferry     
                                                                                (deep sea activities).          
XXXXX..............      Coastal and Great Lakes    R                    4424  Deep Sea Domestic Transportation 
                          Freight Transportation.                               of Freight.                     
                                                    ................     4432  Freight Transportation on the    
                                                                                Great Lakes--St. Lawrence       
                                                                                Seaway.                         
                                                    ................    *4492  Towing and Tugboat Services      
                                                                                (coastal barge operations).     
XXXXX..............      Coastal and Great Lakes    R                   *4481  Deep Sea Transportation of       
                          Passenger Transportation.                             Passengers, Except by Ferry     
                                                                                (coastal activities).           
                                                    ................    *4482  Ferries (coastal and Great       
                                                                                Lakes).                         
XXX................    Inland Water                                                                             
                        Transportation:                                                                         
XXXX...............     Inland Water                                                                            
                         Transportation:                                                                        
XXXXX..............      Inland Water Freight       R                    4449  Water Transportation of Freight, 
                          Transportation.                                       Not Elsewhere Classified.       
                                                    ................    *4492  Towing and Tugboat Services      
                                                                                (inland barge operations).      
XXXXX..............      Inland Water Passenger     R                   *4482  Ferries (inland).                
                          Transportation.                                                                       
                                                    ................    *4489  Water Transportation of          
                                                                                Passengers, Not Elsewhere       
                                                                                Classified (water taxi).        
XX.................  Truck Transportation:                                                                      
XXX................    General Freight Trucking:                                                                
XXXX...............     General Freight Trucking,   N                   *4212  Local Trucking without Storage   
                         Local.                                                 (general freight).              
                                                    ................    *4214  Local Trucking with Storage      
                                                                                (general freight).              
XXXX...............     General Freight Trucking,                                                               
                         Long-Distance:                                                                         
XXXXX..............      General Freight Trucking,  N                   *4213  Trucking, Except Local (general  
                          Long-Distance, Truckload.                             freight, truckload).            
XXXXX..............      General Freight Trucking,  N                   *4213  Trucking, Except Local (general  
                          Long-Distance, Less Than                              freight, less than truckload).  
                          Truckload.                                                                            
XXX................    Specialized Freight                                                                      
                        Trucking:                                                                               
XXXX...............     Used Household and Office   N                   *4212  Local Trucking Without Storage   
                         Goods Moving.                                          (household goods moving).       
                                                    ................    *4213  Trucking, Except Local (household
                                                                                goods moving).                  
                                                    ................    *4214  Local Trucking With Storage      
                                                                                (household goods moving).       
XXXX...............     Specialized Freight         N                   *4212  Local Trucking without Storage   
                         (except Used Goods)                                    (specialized freight).          
                         Trucking, Local.                                                                       

[[Page 26636]]

                                                                                                                
                                                    ................    *4214  Local Trucking with Storage      
                                                                                (specialized freight).          
XXXX...............     Specialized Freight         N                   *4213  Trucking, Except Local           
                         (except Used Goods)                                    (specialized freight).          
                         Trucking, Long-Distance.                                                               
XX.................  Transit and Ground Passenger                                                               
                      Transportation:                                                                           
XXX................    Urban Transit Systems:                                                                   
XXXX...............     Urban Transit Systems:                                                                  
XXXXX..............      Mixed Mode Transit         N                   *4111  Local and Suburban Transit (mixed
                          Systems.                                              mode).                          
XXXXX..............      Commuter Rail Systems....  N                   *4111  Local and Suburban Transit       
                                                                                (commuter rail).                
XXXXX..............      Bus and Motor Vehicle      N                   *4111  Local and Suburban Transit (bus  
                          Transit Systems.                                      and motor vehicle).             
XXXXX..............      Other Urban Transit        N                   *4111  Local and Suburban Transit (other
                          Systems.                                              than mixed mode, commuter rail, 
                                                                                and bus and motor vehicle).     
XXX................    Interurban and Rural Bus                                                                 
                        Lines:                                                                                  
XXXX...............     Interurban and Rural Bus    E                    4131  Intercity and Rural Bus          
                         Lines.                                                 Transportation.                 
XXX................    Taxi and Limousine Service:                                                              
XXXX...............     Taxi Service..............  E                    4121  Taxicabs.                        
XXXX...............     Limousine Service.........  N                   *4119  Local Passenger Transportation,  
                                                                                Not Elsewhere Classified        
                                                                                (limousine rental with driver   
                                                                                and automobile rental with      
                                                                                driver).                        
XXX................    School and Employee Bus                                                                  
                        Industry:                                                                               
XXXX...............     School and Employee Bus     R                   *4151  School Buses.                    
                         Industry.                                                                              
                                                    ................     4119  Local Passenger Transportation,  
                                                                                Not Elsewhere Classified        
                                                                                (employee transportation).      
XXX................    Charter Bus Industry:                                                                    
XXXX...............     Charter Bus Industry......  R                    4141  Local Bus Charter Service.       
                                                    ................     4142  Bus Charter Services, Except     
                                                                                Local.                          
XXX................    Other Transit and Ground                                                                 
                        Passenger Transportation:                                                               
XXXX...............     Other Transit and Ground                                                                
                         Passenger Transportation:                                                              
XXXXX..............      Special Needs              N                   *4119  Local Passenger Transportation,  
                          Transportation.                                       Not Elsewhere Classified        
                                                                                (special needs transportation). 
XXXXX..............      All Other Transit and      R                   *4111  Local and Suburban Transit       
                          Ground Passenger                                      (airport transportation         
                          Transportation.                                       service).                       
                                                    ................    *4119  Local Passenger Transportation,  
                                                                                Not Elsewhere Classified (hearse
                                                                                rental with driver and carpool  
                                                                                and vanpool operation).         
XX.................  Pipeline Transportation:                                                                   
XXX................    Pipeline Transportation of                                                               
                        Crude Oil:                                                                              
XXXX...............     Pipeline Transportation of  E                    4612  Crude Petroleum Pipelines.       
                         Crude Oil.                                                                             
XXX................    Pipeline Transportation of                                                               
                        Natural Gas:                                                                            
XXXX...............     Pipeline Transportation of  E                    4922  Natural Gas Transmission.        
                         Natural Gas.                                                                           
XXX................    Other Pipeline                                                                           
                        Transportation:                                                                         
XXXX...............     Pipeline Transportation of  E                    4613  Refined Petroleum Pipelines.     
                         Refined Petroleum                                                                      
                         Products.                                                                              
XXXX...............     All Other Pipeline          E                    4619  Pipelines, Not Elsewhere         
                         Transport.                                             Classified.                     
XX.................  Scenic and Sightseeing                                                                     
                      Transportation:                                                                           
XXX................    Scenic and Sightseeing                                                                   
                        Transportation, Land:                                                                   
XXXX...............     Scenic and Sightseeing      N                   *4119  Local Passenger Transportation,  
                         Transportation, Land.                                  Not Elsewhere Classified (cable 
                                                                                cars and cog railways, except   
                                                                                scenic and amusement and        
                                                                                sightseeing buses).             
                                                    ................    *4789  Transportation Services, Not     
                                                                                Elsewhere Classified (horse-    
                                                                                drawn cabs and carriages).      
                                                    ................    *7999  Amusement and Recreation         
                                                                                Services, Not Elsewhere         
                                                                                Classified (scenic railroads).  
XXX................    Scenic and Sightseeing                                                                   
                        Transportation, Water:                                                                  
XXXX...............     Scenic and Sightseeing      N                   *4489  Water Transportation of          
                         Transportation, Water.                                 Passengers, Not Elsewhere       
                                                                                Classified (airboats, excursion 
                                                                                boats, and sightseeing boats).  
XXX................    Scenic and Sightseeing                                                                   
                        Transportation, Other:                                                                  
XXXX...............     Scenic and Sightseeing      N                   *4522  Air Transportation, Non-Scheduled
                         Transportation, Other.                                 (sightseeing planes).           
                                                    ................    *7999  Amusement and Recreation         
                                                                                Services, Not Elsewhere         
                                                                                Classified (aerial tramways,    
                                                                                scenic and amusement).          
XX.................  Support Activities for                                                                     
                      Transportation:                                                                           
XXX................    Support Activities for Air                                                               
                        Transportation:                                                                         
XXXX...............     Airport Operations:                                                                     
XXXXX..............      Air Traffic Control......  N                   *4581  Airports, Flying Fields, and     
                                                                                Airport Terminal Services       
                                                                                (private air traffic control).  
                                                    ................    *9621  Regulation and Administration of 
                                                                                Transportation Programs         
                                                                                (government air traffic         
                                                                                control).                       

[[Page 26637]]

                                                                                                                
XXXXX..............      Air Operations, Except     N                   *4581  Airports, Flying Fields, and     
                          Air Traffic Control.                                  Airport Terminal Services       
                                                                                (airfreight handling at         
                                                                                airports, hangar operations,    
                                                                                airport terminal services,      
                                                                                aircraft storage, airports, and 
                                                                                flying fields).                 
                                                    ................    *4959  Sanitary Services, Not Elsewhere 
                                                                                Classified (vacuuming of        
                                                                                runways).                       
XXXX...............     Other Support Activities    N                   *4581  Airports, Flying Fields, and     
                         for Air Transportation.                                Airport Terminal Services       
                                                                                (aircraft servicing and         
                                                                                repairing).                     
XXX................    Support Activities for Rail                                                              
                        Transportation:                                                                         
XXXX...............     Support Activities for      R                   *4013  Railroad Switching and Terminal  
                         Rail Transportation.                                   Establishments (all but short   
                                                                                line railroads).                
                                                    ................    *4741  Rental of Railroad Cars (grain   
                                                                                leveling in railroad cars, grain
                                                                                trimming for railroad equipment,
                                                                                procooling of fruits and        
                                                                                vegetables in connection with   
                                                                                transportation, and railroad car
                                                                                cleaning, icing, ventilating,   
                                                                                and heating).                   
                                                    ................    *4789  Transportation Services, Not     
                                                                                Elsewhere Classified (car       
                                                                                loading and unloading; cleaning 
                                                                                of railroad ballasts; dining,   
                                                                                parlor, sleeping, and other car 
                                                                                operations; and railroad        
                                                                                maintenance).                   
XXX................    Support Activities for                                                                   
                        Water Transportation:                                                                   
XXXX...............     Port and Harbor Operations  N                   *4491  Marine Cargo Handling (dock and  
                                                                                pier operations).               
                                                    ................    *4499  Water Transportation Services,   
                                                                                Not Elsewhere Classified (seaway
                                                                                and lighthouse operations).     
XXXX...............     Marine Cargo Handling.....  R                   *4491  Marine Cargo Handling (all but   
                                                                                dock and pier operations).      
XXXX...............     Navigational Services to    N                   *4492  Towing and Tugboat Services (all 
                         Shipping.                                              but barge operations).          
                                                    ................    *4499  Water Transportation Services,   
                                                                                Not Elsewhere Classified        
                                                                                (piloting vessels in and out of 
                                                                                harbors and marine salvage).    
XXXX...............     Other Support Activities    R                   *4499  Water Transportation Services,   
                         for Water Transportation                               Not Elsewhere Classified (all   
                                                                                but seaway and lighthouse       
                                                                                operations, piloting vessels in 
                                                                                and out of harbors, and marine  
                                                                                salvage).                       
                                                    ................    *4785  Fixed Facilities and Inspection  
                                                                                and Weighing Services for Motor 
                                                                                Vehicle Transportation (marine  
                                                                                cargo checkers).                
                                                    ................    *7699  Repair Shops and Related         
                                                                                Services, Not Elsewhere         
                                                                                Classified (ship scaling).      
XXX................    Support Activities for Road                                                              
                        Transportation:                                                                         
XXXX...............     Motor Vehicle Towing......  N                   *7549  Automotive Services, Except      
                                                                                Repair and Carwashes (towing).  
XXXX...............     Other Support Activities    R                    4173  Terminal and Service Facilities  
                         for Road Transportation.                               for Motor Vehicle Passenger     
                                                                                Transportation.                 
                                                    ................     4231  Terminal and Joint Terminal      
                                                                                Maintenance Facilities for Motor
                                                                                Freight Transportation.         
                                                    ................    *4785  Fixed Facilities and Inspection  
                                                                                and Weighing Services for Motor 
                                                                                Vehicle Transportation (all but 
                                                                                marine cargo checkers).         
XXX................    Freight Transportation                                                                   
                        Arrangement:                                                                            
XXXX...............     Freight Transportation      E                    4731  Arrangement of Transportation of 
                         Arrangement.                                           Freight and Cargo.              
XXX................    Storage Facilities:                                                                      
XXXX...............     Refrigerated Storage        R                    4222  Refrigerated Warehousing and     
                         Facilities.                                            Storage.                        
                                                    ................    *4226  Special Warehousing and Storage, 
                                                                                Not Elsewhere Classified (fur   
                                                                                storage).                       
XXXX...............     Farm Product Storage        E                    4221  Farm Product Warehousing and     
                         Facilities.                                            Storage.                        
XXXX...............     Other Storage Facilities:                                                               
XXXXX..............      General Storage            R                   *4225  General Warehousing and Storage  
                          Facilities.                                           (all but self-storage           
                                                                                miniwarehouse warehousing).     
XXXXX..............      All Other Storage          R                    4226  Special Warehousing and Storage, 
                          Facilities.                                           Not Elsewhere Classified (all   
                                                                                but fur storage).               
XXX................    Other Support Activities                                                                 
                        for Transportation:                                                                     
XXXX...............     Other Support Activities                                                                
                         for Transportation:                                                                    
XXXXX..............      Packing and Crating......  E                    4783  Packing and Crating.             
XXXXX..............      All Other Support          R                   *4729  Arrangement of Passenger         
                          Activities for                                        Transportation, Not Elsewhere   
                          Transportation.                                       Classified (arrangement of      
                                                                                carpools and vanpools).         
                                                    ................    *4789  Transportation Services, Not     
                                                                                Elsewhere Classified (pipeline  
                                                                                terminals and stockyards for    
                                                                                transportation).                
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and 
  * means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                               



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description           1997 NAICS and U.S. description  
----------------------------------------------------------------------------------------------------------------
0721....................................  Crop Planting, Cultivating and                                        
                                           Protecting:                                                          

[[Page 26638]]

                                                                                                                
                                            Crop dusting when combined      Nonscheduled Speciality Air         
                                             with a variety of aircraft-     Transportation.                    
                                             based services.                                                    
                                            Other.........................  (Included in the Crop Production    
                                                                             subsector).                        
0851....................................  Forestry Services:                                                    
                                            Aerial forest fighting when     Nonscheduled Speciality Air         
                                             combined with a variety of      Transportation.                    
                                             aircraft-based services.                                           
                                            Other.........................  (Included in the Forestry           
                                                                             subsector).                        
1382....................................  Oil and Gas Field Exploration                                         
                                           Services:                                                            
                                            Aerial geophysical exploration  Nonscheduled Speciality Air         
                                             combined with a variety of      Transportation.                    
                                             aircraft-based services.                                           
                                            Other.........................  (Included in the Mining subsector). 
4011....................................  Railroads, Line-haul Operating..  Line-Haul Railroads.                
4013@...................................  Railroad Switching and Terminal                                       
                                           Establishments:                                                      
                                            Beltline and logging railroads  Short Line Railroads.               
                                            Other.........................  Support Activities for Rail         
                                                                             Transportation (pt.).              
4111@...................................  Local and Suburban Transit:                                           
                                            Mixed mode transit systems....  Mixed Mode Transit Systems.         
                                            Commuter rail systems.........  Commuter Rail Systems.              
                                            Bus and motor vehicle transit   Bus and Motor Vehicle Transit       
                                             systems.                        Systems.                           
                                            Other urban transit systems...  Other Urban Transit Systems.        
                                            Airport limousine               All Other Transit and Ground        
                                             transportation.                 Passenger Transportation (pt).     
4119@...................................  Local Passenger Transportation,                                       
                                           Not Elsewhere Classified:                                            
                                            Ambulances....................  Ambulance Service (Included in      
                                                                             Health and Social Assistance       
                                                                             sector).                           
                                            Employee transportation.......  School and Employee Bus Industry    
                                                                             (pt.).                             
                                            Sightseeing buses and cable     Scenic and Sightseeing              
                                             and cog railways, except        Transportation, Land (pt.).        
                                             scenic.                                                            
                                            Special needs transportation..  Special Needs Transportation.       
                                            Hearse rental with driver and   All Other Transit and Ground        
                                             carpool and vanpool             Passenger Transportation (pt).     
                                             operations.                                                        
                                            Automobile rental with driver   Limousine Service.                  
                                             and limousine rental with                                          
                                             driver.                                                            
4121....................................  Taxicabs:                                                             
                                            Taxicabs......................  Taxi Service.                       
4131....................................  Intercity and Rural Bus           Interurban and Rural Bus Lines.     
                                           Transportation.                                                      
4141@...................................  Local Charter Bus Service:                                            
                                            Local charter bus service.....  Charter Bus Industry (pt.).         
4142@...................................  Bus Charter Service, Except                                           
                                           Local:                                                               
                                            Long-distance charter bus       Charter Bus Industry (pt.).         
                                             service.                                                           
4151....................................  School Buses....................  School and Employee Bus Industry    
                                                                             (pt.).                             
4173@...................................  Terminal and Service Facilities                                       
                                           for Motor Vehicle Passenger                                          
                                           Transportation:                                                      
                                            Independent bus terminals.....  Other Support Activities for Road   
                                                                             Transportation (pt.).              
4212@...................................  Local Trucking Without Storage:                                       
                                            Garbage collection............  Garbage Collection (Included in     
                                                                             subsector related to sanitary      
                                                                             services).                         
                                            Local general freight trucking  General Freight Trucking, Local     
                                             without storage.                (pt.).                             
                                            Household goods moving without  Used Household and Office Goods     
                                             storage.                        Moving (pt.).                      
                                            Local specialized freight       Specialized Freight (except Used    
                                             trucking without storage.       Goods) Trucking, Local (pt.).      
4213@...................................   Trucking, Except Local:                                              
                                             Long-distance truckload        General Freight Trucking, Long-     
                                             general freight trucking.       Distance, Truckload.               
                                             Long-distance less than        General Freight Trucking, Long-     
                                             truckload general freight       Distance, Less Than Truckload.     
                                             trucking.                                                          
                                             Long-distance household goods  Used Household and Office Goods     
                                             moving.                         Moving (pt.).                      
                                             Long-distance specialized      Specialized Freight (except Used    
                                             freight trucking.               Goods) Trucking, Long-Distance.    
4214@...................................   Local Trucking with Storage:                                         
                                             Local general freight          General Freight Trucking, Local     
                                             trucking with storage.          (pt.).                             
                                             Local household goods moving.  Used Household and Office Goods     
                                                                             Moving (pt.).                      
                                             Local specialized freight      Specialized Freight (except Used    
                                             trucking with storage.          Goods) Trucking, Local.            
4215@...................................   Couriers Services Except by                                          
                                           Air:                                                                 
                                             Courier services Except by     Courier Services (Included in       
                                             Air.                            Couriers subsector).               
4221....................................  Farm Product Warehousing and      Farm Product Storage Facilities.    
                                           Storage.                                                             
4222....................................  Refrigerated Warehousing and      Refrigerated Storage Facilities     
                                           Storage.                          (pt.).                             
4225....................................   General Warehousing and                                              
                                           Storage:                                                             
                                             General Warehousing and        General Storage Facilities (pt).    
                                             Storage.                                                           
                                             Self-Storage Miniwarehouse     Operators of Miniwarehouses         
                                             Warehousing.                    (included in Real Estate           
                                                                             subsector).                        
4226....................................   Special Warehousing and                                              
                                           Storage, Not Elsewhere                                               
                                           Classified:                                                          

[[Page 26639]]

                                                                                                                
                                             Fur storage..................  Refrigerated Storage Facilities     
                                                                             (pt.).                             
                                             Other........................  All Other Storage Facilities.       
4231@...................................   Terminal and Joint Terminal                                          
                                           Maintenance Facilities for                                           
                                           Motor Freight Transportation:                                        
                                             Independent truck terminals..  Other Support Activities for Road   
                                                                             Transportation (pt.).              
4311@...................................   United States Postal Service:                                        
                                             United States Postal Service.  Postal Services (Included in Postal 
                                                                             Services subsector).               
4412....................................  Deep Sea Foreign Transportation   Deep Sea Freight Transportation.    
                                           of Freight.                                                          
4424@...................................   Deep Sea Domestic                                                    
                                           Transportation of Freight:                                           
                                             Coastal freight operations...  Coastal and Great Lakes Freight     
                                                                             Transportation (pt.).              
4432@...................................   Freight Transportation on the                                        
                                           Great Lakes-St. Lawrence                                             
                                           Seaway:                                                              
                                             Great Lakes freight            Coastal and Great Lakes Freight     
                                             operations.                     Transportation (pt.).              
4449....................................  Water Transportation of Freight,  Inland Water Freight Transportation 
                                           Not Elsewhere Classified.         (pt.).                             
4481....................................  Deep Sea Transportation of                                            
                                           Passengers, Except by Ferry:                                         
                                            Deep sea passenger              Deep Sea Passenger Transportation.  
                                             transportation.                                                    
                                            Coastal and Great Lakes         Coastal and Great Lakes Passenger   
                                             passenger transportation.       Transportation (pt.).              
4482@...................................  Ferries:                                                              
                                            Coastal and Great Lakes         Coastal and Great Lakes Passenger   
                                             ferries.                        Transportation (pt.).              
                                            Inland water ferries..........  Inland Water Passenger              
                                                                             Transportation (pt.)               
4489....................................  Water Transportation of                                               
                                           Passengers, Not Elsewhere                                            
                                           Classified:                                                          
                                            Water taxis...................  Inland Water Passenger              
                                                                             Transportation (pt.).              
                                            Airboats, excursion boats, and  Scenic and Sightseeing              
                                             sightseeing boats.              Transportation, Water.             
 4491...................................  Marine Cargo Handling:                                                
                                            Dock and pier operations......  Port and Harbor Operations (pt.)    
                                            Other.........................  Marine Cargo Handling.              
4492@...................................  Towing and Tugboat Services:                                          
                                            Coastal and Great Lakes barge   Coastal and Great Lakes Freight     
                                             operations.                     Transportation (pt.).              
                                            Inland water barge operations.  Inland Water Freight Transportation 
                                                                             (pt.).                             
                                            Other.........................  Navigational Services to Shipping   
                                                                             (pt.).                             
4493@...................................  Marinas:                          ....................................
                                            Marinas.......................  Marinas (Included in Recreation,    
                                                                             Amusement, and Gambling subsector).
4499@...................................  Water Transportation Services,                                        
                                           Not Elsewhere Classified:                                            
                                            Boat rental...................  Boat rental (Included in Rental and 
                                                                             Leasing subsector)                 
                                            Seaway and lighthouse           Port and Harbor Operations (pt.).   
                                             operations.                                                        
                                            Marine salvage and piloting     Navigational Services to Shipping   
                                             vessels in and out of harbors.  (pt.).                             
                                            Other.........................  Other Supporting Activities for     
                                                                             Water Transportation (pt.).        
4512....................................  Air Transportation, Scheduled:                                        
                                            Scheduled passenger air         Scheduled freight air               
                                             transportation.                 transportation.                    
                                            Scheduled Passenger Air         Scheduled Freight Air               
                                             Transportation.                 Transportation.                    
4513@...................................  Air Courier Services:                                                 
                                            Air courier operations........  Couriers and Messengers (Included in
                                                                             Couriers subsector).               
4522@...................................  Air Transportation,               ....................................
                                           Nonscheduled:                                                        
                                            Air ambulance.................  Ambulance Services (Included in     
                                                                             Health and Social Assistance       
                                                                             sector).                           
                                            Nonscheduled charter freight    Nonscheduled Chartered Freight Air  
                                             air transportation.             Transportation.                    
                                            Nonscheduled charter passenger  Nonscheduled Chartered Passenger Air
                                             air transportation.             Transportation.                    
                                            Nonscheduled specialty air      Nonscheduled specialty air          
                                             transportation.                 transportation.                    
                                            Sightseeing airplanes.........  Scenic and Sightseeing              
                                                                             Transportation, Other (pt.).       
4581....................................  Airports, Flying Fields, and      ....................................
                                           Airport Terminal Services:                                           
                                            Air traffic control...........  Air Traffic Control.                
                                            Airfreight handling at          Airport Operations, Except Air      
                                             airports, hangar operations,    Traffic Control.                   
                                             airport terminal services,                                         
                                             aircraft storage, airports,                                        
                                             and flying fields.                                                 
                                            Other.........................  Other Support Activities for Air    
                                                                             Transportation.                    
4612....................................  Crude Petroleum Pipelines.......  Pipeline Transportation of Crude    
                                                                             Oil.                               
4613....................................  Refined Petroleum Pipelines.....  Pipeline Transportation of Refined  
                                                                             Petroleum Products.                
4619....................................  Pipelines, Not Elsewhere          All Other Pipeline Transport.       
                                           Classified.                                                          
4724@...................................  Travel Agents:                    ....................................
                                            Travel agents.................  Travel Agencies (Included in        
                                                                             Management and Support Services    
                                                                             subsector).                        
4725@...................................  Tour Operators:                                                       

[[Page 26640]]

                                                                                                                
                                            Tour operators................  Tour Operators (Included in         
                                                                             Management and Support Services    
                                                                             subsector)                         
4729@...................................  Arrangement of Passenger          ....................................
                                           Transportation, Not Elsewhere                                        
                                           Classified:                                                          
                                            Arrangement of carpools and     All Other Support Activities for    
                                             vanpools.                       Transportation (pt.).              
                                            Other.........................  (Included in Management and Support 
                                                                             Services subsector).               
4731....................................  Arrangement of Transportation of  ....................................
                                           Freight and Cargo:                                                   
                                            Freight rate auditors and       Other Management Consulting Services
                                             tariff consultants.             (Included in Professional,         
                                                                             Scientific, and Technical Services 
                                                                             subsector).                        
                                            Other.........................  Freight Transportation Arrangement. 
4741@...................................  Rental of Railroad Cars:........  ....................................
                                            Railcar rental................  Railroad Car Rental (Included in    
                                                                             Rental and Leasing subsector).     
                                            Other.........................  Support Activities for Rail         
                                                                             Transportation (pt.).              
4783....................................  Packing and Crating.............  Packing and Crating.                
4785....................................  Fixed Facilities and Inspection   ....................................
                                           and Weighing Services for Motor                                      
                                           Vehicle Transportation:                                              
                                            Marine cargo checkers.........  Other Support Activities for Water  
                                                                             Transportation (pt.).              
                                            Other.........................  Other Support Activities for Road   
                                                                             Transportation (pt.).              
4789....................................  Transportation Services, Not      ....................................
                                           Elsewhere Classified                                                 
                                            Pipeline terminals and          All Other Support Activities for    
                                             stockyards for transportation.  Transportation (pt.)               
                                            Horse-drawn cabs and carriages  Scenic and Sightseeing              
                                                                             Transportation, Land (pt.).        
                                            Other.........................  Support Activities for Rail         
                                                                             Transportation (pt.).              
4922....................................  Natural Gas Transmission........  Pipeline Transportation of Natural  
                                                                             Gas.                               
4959....................................  Sanitary Services, Not Elsewhere                                      
                                           Classified:                                                          
                                            Vacuuming of airport runways..  Airport Operations, Except Air      
                                                                             Traffic Control.                   
                                            Other.........................  (Included in subsector related to   
                                                                             sanitary services).                
7319....................................  Advertising, Not Elsewhere                                            
                                           Classified:                                                          
                                            Aerial advertising when         Nonscheduled Specialty Air          
                                             combined with a variety of      Transportation.                    
                                             aircraft-based services.                                           
                                            Other.........................  (Included in the Professional,      
                                                                             Scientific and Technical Services  
                                                                             subsector).                        
7335....................................  Commercial Photography:                                               
                                            Aerial photography when         Nonscheduled Specialty Air          
                                             combined with a variety of      Transportation.                    
                                             aircraft-based services.                                           
                                            Except when combined with a     Commercial Photography (Included in 
                                             variety of aircraft-based       the Professional, Scientific and   
                                             services.                       Technical Services subsector).     
7549....................................  Automotive Services, Except                                           
                                           Repair and Carwashes:                                                
                                            Motor Vehicle Towing..........  Motor Vehicle Towing.               
                                            Except Motor Vehicle Towing...  (Included in the Repair and         
                                                                             Maintenance subsector).            
7699....................................  Repair Shops and Related                                              
                                           Services, Not Elsewhere                                              
                                           Classified:                                                          
                                            Ship scaling..................  Other Supporting Activities for     
                                                                             Water Transportation.              
                                            Other.........................  (Included in Repair and Maintenance 
                                                                             subsector).                        
7997....................................  Membership Sports and Recreation                                      
                                           Clubs:                                                               
                                            Membership aviation clubs when  Nonscheduled Specialty Air          
                                             combined with a variety of      Transportation.                    
                                             aircraft-based services                                            
                                            Other.........................  (Included in the Recreation,        
                                                                             Amusement, and Gambling subsector).
7999....................................  Amusement and Recreation                                              
                                           Services, Not Elsewhere                                              
                                           Classified:                                                          
                                            Aerial tramways, scenic and     Scenic and Sightseeing              
                                             amusement.                      Transportation, Other.             
                                            Scenic railroads..............  Scenic and Sightseeing              
                                                                             Transportation, Land.              
                                            Other.........................  (Included in the Recreation,        
                                                                             Amusement, and Gambling subsector).
8299....................................  Schools and Educational                                               
                                           Services, Not Elsewhere                                              
                                           Classified:                                                          
                                            Flight schools when combined    Nonscheduled Specialty Air          
                                             with a variety of aircraft-     Transportation.                    
                                             based services.                                                    
                                            Other.........................  (Included in the Education Services 
                                                                             subsector).                        
8713....................................  Surveying Services: Aerial        Nonscheduled Specialty Air          
                                           surveying when combined with a    Transportation.                    
                                           variety of aircraft-based                                            
                                           services                                                             
                                            Other.........................  (Included in the Professional,      
                                                                             Scientific and Technical Services  
                                                                             subsector).                        
9621....................................  Regulation and Administration of                                      
                                           Transportation Programs:                                             
                                            Government air traffic control  Air Traffic Control.                

[[Page 26641]]

                                                                                                                
                                            Other.........................  (Included in Public Administration  
                                                                             subsector).                        
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means time series break has been created that is greater than 3%  
  of the 1992 revenues for the 1987 industry. The abbreviation NEC is used for Not Elsewhere Classified.        



Description of Changes to the U.S. System

    1. Air Transportation--There are five new classifications added to 
the 1997 industry structure for this subsector. New industries are the 
following:
    Scheduled Passenger Air Transportation from part of 1987 SIC 4512, 
Air Transportation, Scheduled.
    Scheduled Freight Air Transportation from part of 1987 SIC 4512, 
Air Transportation, Scheduled.
    Nonscheduled Chartered Passenger Air Transportation from part of 
1987 SIC 4522, Air Transportation, Nonscheduled.
    Nonscheduled Chartered Freight Air Transportation from part of 1987 
SIC 4522, Air Transportation, Nonscheduled.
    Nonscheduled Specialty Air Transportation establishments that use 
small, general purpose aircraft to provide a variety of specialized 
flying services, with none of them predominating, from parts of 1987 
SIC 0721, Crop Planting, Cultivating, and Protecting; 1987 SIC 0851, 
Forestry Services; 1987 SIC 1382, Oil and Gas Field Exploration 
Services; 1987 SIC 4522, Air Transportation, Nonscheduled; 1987 SIC 
7319, Advertising, Not Elsewhere Classified; 1987 SIC 7335, Commercial 
Photography; 1987 SIC 7997, Membership Sports and Recreation Clubs; 
1987 SIC 8299, Schools and Educational Services, Not Elsewhere 
Classified; and 1987 SIC 8713, Surveying Services. The changes to air 
transportation to separate passenger transportation from freight 
transportation were requested by the industry and are supported by 
production-based principles.
    2. One new industry has been added for Rail Transportation. Short 
Line Railroads was created from part of 1987 SIC 4013, Railroad 
Switching and Terminal Establishments. This change was made because of 
the differences in the production process between short line and line-
haul railroads.
    3. Water Transportation--The Water Transportation subsector now 
includes six industries, five of which have been revised from 1987.
    Deep Sea Passenger Transportation now excludes coastal activities.
    Coastal and Great Lakes Freight Transportation includes 1987 SIC 
4424, Deep Sea Domestic Transportation of Freight; 1987 SIC 4432, 
Freight Transportation on the Great Lakes-St. Lawrence Seaway; and part 
of 1987 SIC 4492, Towing and Tugboat Services.
    Coastal and Great Lakes Passenger Transportation now includes part 
of 1987 SIC 4481, Deep Sea Transportation of Passenger, Except by 
Ferry, and part of 1987 SIC 4482, Ferries.
    Inland water transportation has been split between freight and 
passenger transportation. These changes were made to achieve 
international comparability with Canada and Mexico and to also 
recognize the split between freight and passenger transportation.
    3. Truck Transportation--The trucking industry has been redefined 
in terms of the type of equipment used. This regroups 1987 SIC 4212, 
Local Trucking Without Storage; 1987 SIC 4213, Trucking, Except Local; 
and 1987 SIC 4214, Local Trucking with Storage. The new classifications 
are: General Freight Trucking Local; General Freight Trucking, Long-
Distance, Truckload; General Freight Trucking, Long-Distance, Less than 
Truckload; Used Household and Office Goods Moving; Specialized Freight 
(except Used Goods) Trucking, Local; and Specialized Freight (except 
Used Goods) Trucking, Long-Distance. This change was requested by the 
industry and is supported on production-based principles.
    4. Transit and Ground Passenger Transportation--There were four 
industries created from 1987 SIC 4111, Local and Suburban Transit. They 
are: Mixed Mode Transit Systems, Commuter Rail Systems, Bus and Motor 
Vehicle Transit Systems, and Other Urban Transit Systems. These 
classifications were identified to separate the industry based on the 
mode of transportation.
    Limousine Service was created from part of 1987 SIC 4119, Local 
Passenger Transportation, Not Elsewhere Classified. This industry was 
created from an NEC industry to recognize its production process and to 
group it in the same industry group as taxis, an industry that provides 
similar services, with a similar production process.
    Special Needs Transportation was created from part of 1987 SIC 
4119, Local Passenger Transportation, Not Elsewhere Classified. This 
industry identifies a separate process involving the use of specially 
equipped vehicles and special services not found in other passenger 
transportation.
    A residual industry, All Other Transit and Ground Passenger 
Transportation, was created from part of 1987 SIC 4111, Local and 
Suburban Transit; and part of 1987 SIC 4119, Local Passenger 
Transportation, Not Elsewhere Classified.
    5. Pipeline Transportation--There were no changes to these 
industries for NAICS.
    6. Scenic and Sightseeing Transportation--Three new industries were 
created for this subsector as follows:
    Scenic and Sightseeing Transportation, Land from part of 1987 SIC 
4119, Local Passenger Transportation, Not Elsewhere Classified; part of 
1987 SIC 4789, Transportation Services Not Elsewhere Classified; and 
part of 1987 SIC 7999, Amusement and Recreation Services, Not Elsewhere 
Classified.
    Scenic and Sightseeing Transportation, Water from 1987 SIC 4489, 
Water Transportation of Passengers, Not Elsewhere Classified.
    Scenic and Sightseeing Transportation, Other from part of 1987 SIC 
4522, Air Transportation, non-scheduled, and part of 1987 SIC 7999, 
Amusement and Recreation Services, Not Elsewhere Classified. These 
industries were agreed to by the U.S. to improve international 
comparability with Mexico and Canada, and because scenic and 
sightseeing involves different activities from other forms of 
transportation, as noted in Section A.
    7. Support Activities for Transportation--Three new industries have 
been created for Support Activities for Air Transportation. Activities 
included in 1987 SIC 4581, Airports, Flying Fields and Airport Terminal 
Services, are now included in three new industries: Air Traffic Control 
also including government operations included in 1987 SIC 9621, 
Regulation and Administration of Transportation Programs; Air 
Operations, Except Air Traffic Control; and Other Support Activities 
for Air Transportation. Air Operations, Except Air Traffic Control

[[Page 26642]]

also includes runway vacuuming included in 1987 SIC 4959, Sanitary 
Services, Not Elsewhere Classified. These changes improve comparability 
with Mexico and Canada and are supported based on production 
principles.
    Two new industries are included in Support Activities for Water 
Transportation. These are Port and Harbor Operations and Navigational 
Services to Shipping. Port and Harbor Operations is a combination of 
dock and pier activities formerly included in 1987 SIC 4491, Marine 
Cargo Handling, and part of 1987 SIC 4499, Water Transportation 
Services, Not Elsewhere Classified (lighthouse and seaway operations). 
Navigational Services to Shipping is a combination of the activities 
from 1987 SIC 4492, Towing and Tugboat Services (all but the barge 
activities), and 1987 SIC 4499, Water Transportation Services, Not 
Elsewhere Classified (piloting vessels in and out of harbors and marine 
salvage). These changes were made to improve international 
comparability.
    In Support Activities for Road Transportation, Motor Vehicle Towing 
has been created from part of 1987 SIC 7549, Automotive Services, 
Except Repair and Carwashes. This activity was moved from automotive 
services because the processes are similar to transportation 
activities. Other changes include the combination of activities from 
1987 SIC 4173, Terminal and Service Facilities for Motor Vehicle 
Passenger Transportation; other road services from 1987 SIC 4231, 
Terminal and Joint Terminal Maintenance Facilities for Motor Freight 
Transportation; and most of the activities included in 1987 SIC 4785, 
Fixed Facilities and Inspection and Weighing Services for Motor Vehicle 
Transportation (all but marine cargo checkers). The new industry, Other 
Support Activities for Road Transportation, was created because the 
production process of these activities is similar regardless of the 
input that produces these services.
    The number of industries in this sector has increased from forty-
five in 1987 to fifty-four in 1997. For time series linkage twelve of 
the forty-five 1987 industries are directly comparable. Another twelve 
are comparable within three percent of the 1997 industries. Yet another 
four 1987 industries have changes that resulted in twelve 1997 NAICS 
industries that can be summed for comparable classifications.

Part XIV--Proposed New Industry Structure for Retail Trade and 
Wholesale Trade

Section A--NAICS Structure

(NAICS)
Agreement Number 25

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

Retail Trade
Wholesale Trade

    A brief description of the boundaries for Retail Trade and 
Wholesale Trade is attached. Each country agrees to release a copy of 
the proposed NAICS boundaries to interested data users. Comments 
received will be shared among the countries and additional discussions 
will be held before a final decision on the boundaries is made. The 
structure and detailed definitions of the industries within the 
boundaries will be determined by each country's national requirements. 
The NAICS boundaries for these sectors were presented and provisionally 
accepted at the NAICS Committee meeting held on November 8 and November 
9, 1995 in Washington D.C.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    11/9/95
Mexico..............................  /S/ Enrique Ordaz......    11/9/95
United States.......................  /S/ Jack E. Triplett...    11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

Attachment 2--North American Industry Classification System

    Draft Classification For:

Retail Trade
Wholesale Trade

Summary

    In most sectors of the North American Industry Classification 
System (NAICS), the statistical agencies of Canada, Mexico, and the 
United States have agreed to a detailed structure that includes 
subsectors, industry groups, and detailed industry definitions. 
However, in the cases of the Retail Trade sector and the Wholesale 
Trade sector, the three statistical agencies have agreed that only the 
boundaries of the sectors will be made comparable internationally at 
the present time. The structure and detailed definitions of the 
industries within the boundaries will be determined by national 
requirements.
    For the Retail Trade and Wholesale Trade sectors, determining 
internationally comparable boundaries was vital. Internationally 
comparable boundaries make it possible to compare the relative size of 
the Retail Trade and Wholesale Trade sectors in the economies of the 
three countries. Moreover, achieving international comparability on the 
boundaries of the Retail Trade and Wholesale Trade sectors was 
necessary to obtain internationally comparable data for the other 
sectors of NAICS. For example, previously the three countries had 
different and inconsistent boundaries between retail trade and 
manufacturing for some activities, between retail trade and services 
for others, and between retail trade and wholesale trade for still 
others.
    Because resources and time for constructing NAICS were limited, the 
three countries decided to place priority on determining 
internationally comparable boundaries for the Retail Trade and 
Wholesale Trade sectors. This agreement does not preclude further work 
toward internationally comparable retail trade and wholesale trade 
industries in the future.

General Outline

    The NAICS definitions of Retail Trade and Wholesale Trade differ 
from the previous definitions in all three countries. The new 
definitions of Retail Trade and Wholesale Trade follow. They result 
from a new criterion to separate these sectors.
    Retail establishments are primarily engaged in selling merchandise, 
generally without transformation, for end use. These establishments 
attract customers using methods such as advertising, point-of-sale 
location, and display of merchandise for ease of selection.
    Two type of retailers are distinguished:
    (1) Store retailers attempt to attract a high volume of walk-in 
customers through site location and/or advertising. In general, retail 
stores have extensive merchandise displays to promote product 
accessibility and sales. Other store retailers include catalog sales 
showrooms, gasoline service stations, and mobile home dealers.
    (2) Non-store retailers--those selling by other means--include:

Mail order houses
Vending machine operators
Telemarketing sales
Home delivery (e.g., milk, newspapers)
Door-to-door sales
Party plans
Electronic shopping
 Sales through temporary stands or stalls

    Sales of capital or durable nonconsumer goods used in the

[[Page 26643]]

production of goods and services, such as farm machinery, medium and 
heavy duty trucks, and industrial machinery, as well as the sale of raw 
materials used in production, are included in wholesale trade. These 
goods are virtually never sold through the methods outlined above.
    Wholesale establishments are primarily engaged in selling or 
arranging the purchase or sale of a) goods for resale, b) capital or 
durable nonconsumer goods, and c) raw and intermediate materials and 
supplies used in production. Wholesale establishments have most or all 
of the following characteristics:
    Wholesalers normally operate from a warehouse or office. These 
warehouses and offices are characterized by having little or no display 
of merchandise. In addition, neither the design nor the location of the 
premises is intended to solicit walk-in traffic. Wholesalers do not 
normally use advertising directed to the general public. Customers are 
generally reached initially via telephone, in-person marketing, or by 
specialized advertising that may include internet and other electronic 
means.
    While sales are normally in large volumes, durable nonconsumer 
goods may be sold in single units.
    Sales of capital or durable nonconsumer goods used in the 
production of goods and services, such as farm machinery, medium and 
heavy duty trucks, and industrial machinery, as well as the sale of raw 
materials used in production, are always included in wholesale trade.
    Two types of wholesalers may be distinguished:
    (1) Establishments selling goods, generally without transformation, 
on their own account are known as ``merchant wholesalers'' or 
``distributors.'' Sales of products may include integral services such 
as sorting, packaging and labeling, and marketing. Merchant wholesalers 
typically maintain their own warehouses. Merchant wholesalers also 
include drop shippers and import/export merchants.
    (2) Establishments arranging for the purchase or sale of goods 
owned by others or purchasing on a commission basis are known as 
``agents and brokers.'' Agents and brokers operate from offices and 
rarely own and handle goods. Commission merchants, auction agents, 
import/export agents, and manufacturers' representatives are included 
in agents and brokers.
    The redefinition of the criterion to separate retail trade and 
wholesale trade is a change for all three countries. In the past, the 
criterion was based on the class of customer (though specific 
exceptions were listed). That is, if the business was primarily engaged 
in selling merchandise for personal or household consumption, the 
establishment was classified in Retail Trade. If the establishment was 
primarily selling to business or farm customers for business use, the 
establishment was included in Wholesale Trade. This led to anomalies, 
for example, the classification into wholesale trade of businesses 
perceived to be retail trade, the classification of similar businesses 
to different sectors, and contrary interpretations of the rule by the 
various statistical agencies.
    The new wholesale-retail definition emphasizes what the 
establishment does, rather than to whom it sells. A store retailer, for 
example, has the attributes of a store: A selling place open to the 
public, merchandise on display or available through sales clerks, 
facilities for making cash or credit card transactions, and services 
provided to retail customers. The store provides a place to purchase 
commodities and is a location where customers may go to obtain 
information about commodities that are available in retail markets. The 
new rule is an implementation of the production-oriented criterion for 
classification adopted for NAICS. But it also agrees with common sense 
and the normal usage of the word ``retailing'' among the public and by 
business within the sector itself. The old class of customer rule did 
not correspond to the usual meaning of the word ``retailing.''

Relationship to ISIC

    The International Standard Industrial Classification of all 
Economic Activities (ISIC, Revision 3) does not include separate 
aggregates for Retail Trade and Wholesale Trade. Rather, it combines 
these activities into three ISIC divisions as follows: Division 50, 
Sale, Maintenance and Repair of Motor Vehicles and Motorcycles; Retail 
Sale of Automotive Fuel; Division 51, Wholesale Trade and Commission 
Trade, Except of Motor Vehicles and Motorcycles; and Division 52, 
Retail Trade, Except of Motor Vehicles and Motorcycles; Repair of 
Personal and Household Goods. The Retail Trade and Wholesale Trade 
sectors proposed for NAICS are equivalent to those ISIC divisions minus 
class 5020, Maintenance and Repair of Motor Vehicles; class 5260, 
Repair of Personal and Household Goods; and part of class 5040, Sale, 
Maintenance and Repair of Motorcycles and Related Parts and 
Accessories.

Some Changes to the National Classifications

    For Canada, the agreement on new definitions for retail trade and 
wholesale trade results in the transfer of a number of establishments 
from wholesale trade to retail trade, manufacturing, and services, and 
from retail trade to manufacturing and services. The most important of 
these changes are outlined below.
    Although the main criterion to distinguish Retail Trade 
establishments from Wholesale Trade in the 1980 Standard Industrial 
Classification (SIC) is the class of customer, particular types of 
trade establishments are assigned to wholesale trade irrespective of 
their main class of customer. The most important of these are building 
materials dealers, computer and software stores, office supplies stores 
and home fuel dealers. NAICS assigns many of these establishments in 
Retail Trade, that is, those establishments that meet the conditions 
specified in the Retail Trade definition. Establishments that supply 
these products to retailers will remain in Wholesale Trade.
    The Wholesale Trade division currently includes some activities 
that are moved to the NAICS manufacturing sector. These activities are 
tire retreading, the rebuilding on a factory basis of some automotive 
parts and the converting of fabric (piece goods converters). Piece 
goods converters are establishments primarily engaged in purchasing 
fabric in the grey and arranging to have a separate establishment dye 
the fabric on a contract basis. As well, establishments primarily 
engaged in the repair of various types of machinery and equipment are 
transferred from Wholesale Trade to a newly created Repair and 
Maintenance subsector. These changes affect a relatively small number 
of establishments currently found in sixteen wholesale industries.
    A number of activities currently in Retail Trade in the Canadian 
classification are assigned to other sectors in NAICS, including 
establishments engaged in the transformation and sale of products on 
the premises. Therefore, retail bakeries and candy shops that produce 
most of their products on the premises and tailor shops that produce 
custom garments are being moved to manufacturing. Also, the repair and 
maintenance of automobiles, home appliances, consumer electronics, 
furniture, recreational vehicles, bicycles, musical instruments and 
watches and jewelry is transferred from Retail Trade to the newly 
created Repair

[[Page 26644]]

and Maintenance subsector. This change implies the relocation of entire 
industries, CSIC 6213, Furniture Refinishing and Repair Shops; CSIC 
6223, Appliance, Television, Radio and Stereo Repair Shops; CSIC 635, 
Motor Vehicle Repair Shops; most of CSIC 639, Other Motor Vehicle 
Services; CSIC 6562, Watch and Jewelry Repair Shops; and parts of CSIC 
6323, Motorcycle and Snowmobile Dealers; CSIC 6542, Bicycle Shops; and 
CSIC, 6551, Musical Instrument Stores.
    For Mexico, the change from class of customer to production 
characteristics changes a number of industries. These include such 
things as office supplies, farm supplies, building materials, paint, 
and hardware that existed only in wholesale in CMAP. In NAICS these 
activities, are in both Wholesale Trade and Retail Trade . The biggest 
change in this area is including the sales of computers and office 
furniture in Retail Trade. CMAP does not include classifications in 
Retail Trade for these activities.
    There are a number of activities that will be included in Retail 
Trade and Wholesale Trade for NAICS that are included in other areas of 
CMAP. These include vending operations and establishments selling on a 
commission basis. The vending machine operators are included in CMAP 
931011, Restaurants and Eateries. Commissionaires are included in CMAP 
97500, Business Intermediation.
    The sales of lottery tickets that is included in CMAP 623089, 
Retail Trade in Lottery Tickets, Etc., will be excluded from Retail 
Trade in NAICS.
    For the United States, restaurants and bars, formerly included in 
retail trade in the U.S., have been moved and combined with hotels and 
other accommodations (See Agreement No. 3). This affects all of 1987 
SIC Major Group 58 and part of the retail food industry, including such 
establishments as doughnut shops, cookie shops, pretzel shops, etc. 
that are primarily engaged in the preparation of food and drink for 
immediate consumption. These establishments were previously classified 
in 1987 SIC 5461, Retail Bakeries, and 1987 SIC 5499, Miscellaneous 
Food Stores. It also includes mobile food services that were previously 
included in 1987 SIC 5963, Direct Selling Establishments.
    The handling of the combination of sales and service is also a 
change. In the past, establishments that were primarily engaged in 
service activities were included in Services. This resulted in many 
businesses that engaged in both sales and service changing 
classification from year to year based on the condition of the market 
for the sales of the product. This was particularly evident in the area 
of bicycle sales and service. In NAICS, establishments that are selling 
and providing services for the products sold will be included in retail 
trade even if more of their revenue is in service receipts. An 
establishment that only has incidental sales or that provides services 
for products they do not sell such as automobile repair by an 
independent repair shop are still classified in NAICS as a service 
establishment.
    Another example of change is the print and frame shop. 
Establishments that frame pictures usually also sell prints and framing 
materials to their customers. Such an establishment was classified 
either in Services or Retail based on the share of revenue derived from 
the framing activity versus the sales activity. NAICS specifies that 
these establishments are to be classified in Retail Trade.
    There is also a change in the classification of some activities 
involving making and selling goods to the public at the same location. 
Establishments engaged in producing candy, baked goods, custom 
clothing, furniture, cabinets, and crafts are included in the 
Manufacturing sector of NAICS. These activities are included in 
Division G, Retail Trade, of the 1987 SIC.
    The change from class of customer to production characteristics 
will affect establishments in industries such as computer stores, 
office furniture dealers, and office suppliers which will move from 
wholesale to retail.
    Another change to Wholesale Trade is the treatment of piece goods 
converters. In the past, these piece goods converters have been 
included in Wholesale Trade. But in NAICS, converters will be included 
in Manufacturing.

Achievement of Objectives

    The classification meets the objectives for the North American 
Industrial Classification System (NAICS). It groups establishments with 
similar production processes, that is, it applies production-oriented 
economic concepts. It achieves comparability for the three 
participating countries. Based on the existing data, all three 
countries expect to be able to publish data regularly at the total 
level for Retail and Wholesale trade sectors.
    Other objectives of the NAICS project were not as relevant in this 
area of the classification as in others. These objectives are the 
delineation of new and emerging industries, expansion of the service 
industries, and industries engaged in the production of advanced 
technologies. Therefore, the emphasis was on the objectives listed 
above.

Section B--Annex: United States National Industry Detail

    The U.S. national detail industries will be shown in the next 
Federal Register notice.

Part XV--Proposed New Industry Structure for Oil and Gas Extraction; 
Mining, except Oil and Gas; Support Activities for Mining

Section A--Structure

North American Industry Classification System
(NAICS)
Agreement Number 26

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

Oil and Gas Extraction
Mining, Except Oil and Gas
Support Activities for Mining

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on November 8 and November 9, 1995 in 
Washington, D.C.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    11/9/95
Mexico..............................  /S/ Enrique Ordaz......    11/9/95
United States.......................  /S/ Jack E. Triplett...    11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Oil and Gas Extraction
XXX  Oil and Gas Extraction
XXXX  Oil and Gas Extraction
XX  Mining, Except Oil and Gas
XXX  Coal Mining
XXXX  Coal Mining
XXX  Metal Ore Mining
XXXX  Iron Mining
XXXX  Gold and Silver Mining
XXXX  Copper, Nickel, Lead, and Zinc Mining
XXXX  Other Metal Ore Mining

[[Page 26645]]

XXX  Non-Metallic Mineral Mining and Quarrying
XXXX  Stone Mining and Quarrying
XXXX  Sand, Gravel, Clay, Ceramic, and Refractory Mineral Mining and 
Quarrying
XXXX  Other Non Metallic Mineral Mining and Quarrying
XX  Support Activities for Mining
XXX  Support Activities for Mining
XXXX  Support Activities for Mining

Attachment 2--North American Industry Classification System

    Draft Classification for:

Mining

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industry classification for these 
industries.
    This draft classification applies to the sector Mining. This sector 
is subdivided into three subsectors and five industry groups: Oil and 
Gas Extraction, Coal Mining, Metal Ore Mining, Non-Metallic Mineral 
Mining and Quarrying, and Support Activities for Mining. The five 
industry groups are subdivided into 10 industries.

A General Outline

    The Mining sector includes the extraction of liquids and gases such 
as petroleum and natural gas by the operation of wells and the 
extraction of naturally occurring minerals through underground or 
surface mining. Also included is the beneficiating of the ores by 
crushing, grinding, washing, drying, leaching, and other means. The 
sector is divided into three subsectors, two being based on the types 
of minerals extracted and beneficiated and one being support activities 
for the extraction.
    The existing industry classifications of Canada, Mexico, and the 
United States were remarkably similar in their overall structure for 
mining. There were significant differences in the classifications at 
the detailed level, as the detailed level varied because of the 
specific mineral deposits that were significant to each country. The 
existing classifications were for the most part inherently production 
oriented and satisfactory to data users. The structure maximizes the 
comparability between the three countries and makes modest enhancements 
to the production orientation of the classification.

Limitations and Constraints of the Classification

    The extraction of any mineral is conditional on the presence of a 
suitable mineral deposit. Generally, the extraction method varies 
according to the type of deposit mined as does the beneficiating 
process.
    An approach that distinguished surface and underground mining as a 
basis for defining industry groups was considered but in the case of 
many metals and non-metals the activity in each was too small to permit 
separation. On the other hand the difference in the beneficiating 
processes (agglomerating, crushing, chemical, leaching etc.) required 
for different ores provided the basis for distinguishing production 
processes. The type of mineral deposit was therefore considered to be a 
good proxy for the production process in most cases of metal mining. 
However, these deposits vary significantly among the three countries. 
For many types of minerals the number of deposits in any one country 
may be too small to permit publishing data on that industry for that 
country. This limited the number of possible industries. The industries 
are therefore based on the type of minerals that generally occur 
together in a mineral deposit in all three countries. For example, the 
occurrence of combinations of copper, lead, zinc and nickel in the same 
mineral deposit is common among the three countries. In the case of 
non-metal mining, the quarrying of stone, above ground, requires 
precision cutting of large blocks of stone which is a process very 
different from the process of extracting sand, gravel, clay, ceramic 
and refractory minerals.

Relationship to ISIC

    Most 4-digit industries in this sector are contained within 
Divisions 10-14, Mining and Quarrying, of the current International 
Standard Industrial Classification of all Economic Activities (ISIC 
Revision 3) of the United Nations. Generally, the industries can be 
reaggregated to the ISIC divisions. However, there are some 
differences: ISIC includes peat with coal in Division 10, Mining of 
Coal and Lignite, Extraction of Peat, whereas peat extraction is 
included in NAICS industry Non Metallic Mineral Mining and Quarrying. 
Although peat is similar to coal in that it can be used as a fuel, the 
extraction and beneficiating processes are distinctly different from 
coal and are similar to the processes involved with non metallic 
minerals. It should be noted that in North America peat is seldom used 
as fuel but rather as a soil conditioner. ISIC Division 12, Mining of 
Uranium and Thorium Ores, is not supportable as a NAICS industry.

Some Changes to the National Classifications

    For Canada, CSIC 0611, Gold Mines, has been combined with the 
silver part of CSIC 0614, Silver-Lead-Zinc Mines, to form the NAICS 
four digit industry Gold and Silver Mining. Gold mining and silver 
mining are separated at the national five digit level. Silver mining 
becomes a null set as it does not exist in Canada. Silver is mined only 
as a by product of lead and zinc mining in Canada.
    CSIC 0612, Copper and Copper-Zinc Mines, has been combined with 
CSIC 0613, Nickel-Copper Mines, plus the lead and zinc part of CSIC 
0614 to form NAICS industry Copper, Nickel, Lead, and Zinc Mining.
    CSIC 0615, Molybdenum Mines, was combined with CSIC 0616, Uranium 
Mines, and CSIC 0619, Other Metal Mines, to form NAICS Other Metal 
Mining.
    CSIC 0811, Granite Quarries; CSIC 0812, Limestone Quarries; CSIC 
0813, Marble Quarries; and CSIC 0814, Sandstone Quarries, becomes NAICS 
industry Mining and Quarrying of Stone. However these 4 digit 
industries are restored for national detail.
    CSIC 0821, Sand and Gravel Pits, has been combined with CSIC 0815, 
Shale Quarries, and the crude clays from clay pits part of CSIC 3511, 
Clay Products, to form NAICS industry Sand, Gravel, Clay, Ceramic and 
Refractory Mineral Mining and Quarrying. However, CSIC 0821, Sand and 
Gravel Pits, is restored at the level of national detail. There are no 
known establishments primarily engaged in extracting clay in Canada, 
although extraction of clay exists by the manufacturers of clay 
products.
    For Mexico, peat mining has been split from CMAP 210000, Mining 
and/or Beneficiation of Coal, to be included in NAICS industry Non-
Metallic Mineral Mining and Quarrying. The remaining portion of CMAP 
21000 is equivalent to NAICS industry Coal Mining. Peat extraction is 
of little statistical significance in Mexico.
    For Mexico, the nickel part of CMAP 232006, Mining and/or 
Beneficiation of Other Nonferrous Metallic Ores, has been split out. 
This split will have little statistical impact as there is only a very 
small amount of nickel mining in Mexico. The split is combined with 
CMAP 232003, Mining and/or Beneficiation of Industrial Ore with a High 
Lead and Zinc Content, and CMAP 232005, Mining and/or Beneficiation of 
Ore with a High Copper Content, to form the NAICS four digit industry 
Copper, Nickel, Lead, and Zinc Mining.
    The creation of the Support Activities for Mining subsector in is 
an important change for Mexico, since such activities are not 
represented in the Mexican classification. However, the coverage of the 
mining sector is very close to the current mining sector in CMAP.
    For the United States, a structural change involved moving the 
support

[[Page 26646]]

activity industries from their respective 1987 SIC Major Groups and 
bringing them all together in the NAICS structure under the subsector 
Support Activities for Mining.
    The nickel ore mining part of 1987 SIC 1061, Ferroalloy Ores, 
Except Vanadium, has been combined with 1987 SIC 1021, Copper Ores, at 
the national level. This has a small statistical impact as production 
is relatively insignificant. This national level industry plus 1987 SIC 
1031, Lead and Zinc Ores, also maintained at the national level, form 
NAICS industry Copper, Nickel, Lead, and Zinc Mining.
    The bituminous limestone and bituminous sandstone part of 1987 SIC 
1499, Miscellaneous Nonmetallic Minerals, Except Fuels, is moved out of 
Non Metallic Minerals Mining to NAICS industry Mining and Quarrying of 
Stone.

Achievement of Objectives

    The classification meets the objectives for the North American 
Industry Classification System (NAICS). It includes industries that 
group establishments with similar production processes, that is, it 
applies the production-oriented economic concept. In the main, the 
hierarchical structure of the classification also follows the 
production concept.
    Other objectives of the project are not as relevant in this area of 
the classification as in others. These objectives are the delineation 
of new and emerging industries, service industries and industries 
engaged in the production of advanced technologies. The industrial 
sector in question is relatively mature and uses relatively stable 
technology for extraction.
    The industries are highly specialized, and they are economically 
significant. Disruptions to time series are minimal. The classification 
achieves comparability for the three participating countries. All 
countries agree on the detailed definitions of the industries.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the three NAICS industry 
subsectors presented in Part XV, Section A--Attachment 1, contain less 
detail than is currently in the U.S. SIC system, and less detail than 
is required to meet important analytical requirements in the U.S. The 
three country agreement on NAICS envisions that each country may 
develop national detailed industries below the NAICS industry level, so 
long as the national detail can be aggregated to the classification, 
thus assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the three 
NAICS industry subsectors covered in Part XV of this notice. For cases 
where no 5-digit detail is shown, the ECPC is proposing that the NAICS 
4-digit industries will also represent the most detailed U.S. 
industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Oil and Gas Extraction:                                                                    
XXX................    Oil and Gas Extraction:                                                                  
XXXX...............     Oil and Gas Extraction:                                                                 
XXXXX..............      Crude Petroleum and        E                    1311  Crude Petroleum and Natural Gas. 
                          Natural Gas Extraction.                                                               
XXXXX..............      Natural Gas Liquid         E                    1321  Natural Gas Liquids.             
                          Extraction.                                                                           
XX.................  Mining except Oil and Gas:                                                                 
XXX................    Coal Mining:                                                                             
XXXX...............     Coal Mining:                                                                            
XXXXX..............      Bituminous Coal and        E                    1221  Bituminous Coal and Lignite      
                          Lignite Surface Mining.                               Surface Mining.                 
XXXXX..............      Bituminous Coal            E                    1222  Bituminous Coal Underground      
                          Underground Mining.                                   Mining.                         
XXXXX..............      Anthracite Mining........  E                    1231  Anthracite Mining.               
XXX................    Metal Ore Mining:                                                                        
XXXX...............     Iron Mining...............  E                    1011  Iron Ores.                       
XXXX...............     Gold and Silver Mining:                                                                 
XXXXX..............      Gold Mining..............  E                    1041  Gold Ores.                       
XXXXX..............      Silver Mining............  E                    1044  Silver Ores.                     
XXXX...............     Copper, Nickel, Lead and                                                                
                         Zinc Mining:                                                                           
XXXXX..............      Copper and Nickel Mining.  R                    1021  Copper Ores.                     
                                                    ................    *1061  Ferroalloy Ores, Except Vanadium 
                                                                                (nickel).                       
XXXXX..............      Lead and Zinc Mining.....  E                    1031  Lead and Zinc Ores.              
XXXX...............     Other Metal Ore Mining:                                                                 
XXXXX..............      Uranium-Radium-Vanadium    E                    1094  Uranium-Radium-Vanadium Ores.    
                          Ores Mining.                                                                          
XXXXX..............      Other Metal Ore Mining...  R                   *1061  Ferroalloy Ores, Except Vanadium 
                                                                                (other ferroalloys except       
                                                                                nickel).                        
                                                    ................     1099  Miscellaneous Metal Ores, NEC.   
XXX................    Non-Metallic Mineral Mining                                                              
                        and Quarrying:                                                                          
XXXX...............     Stone Mining and                                                                        
                         Quarrying:                                                                             
XXXXX..............      Dimension Stone Mining     E                    1411  Dimension Stone.                 
                          and Quarrying.                                                                        
XXXXX..............      Crushed and Broken         E                    1422  Crushed and Broken Limestone.    
                          Limestone Mining and                                                                  
                          Quarrying.                                                                            
XXXXX..............      Crushed and Broken         E                    1423  Crushed and Broken Granite.      
                          Granite Mining and                                                                    
                          Quarrying.                                                                            
XXXXX..............      Other Crushed and Broken   R                    1429  Crushed and Broken Stone, NEC.   
                          Stone Mining and                                                                      
                          Quarrying.                                                                            
                                                                        *1499  Miscellaneous Nonmetallic        
                                                                                Minerals, Except Fuels          
                                                                                (bituminous limestone and       
                                                                                bituminous sandstone).          
XXXX...............     Sand, Gravel, Clay,                                                                     
                         Ceramic and Refractory                                                                 
                         Mineral Mining and                                                                     
                         Quarrying:                                                                             

[[Page 26647]]

                                                                                                                
XXXXX..............      Construction Sand and      E                    1442  Construction Sand and Gravel.    
                          Gravel Mining.                                                                        
XXXXX..............      Industrial Sand Mining...  E                    1446  Industrial Sand.                 
XXXXX..............      Kaolin and Ball Clay       E                    1455  Kaolin and Ball Clay.            
                          Mining.                                                                               
XXXXX..............      Clay, Ceramic, and         E                    1459  Clay, Ceramic, and Refractory    
                          Refractory Mineral                                    Minerals, NEC.                  
                          Mining.                                                                               
XXXX...............     Other Non-Metallic Mineral                                                              
                         Mining and Quarrying:                                                                  
XXXXX..............      Potash, Soda, and Borate   E                    1474  Potash, Soda, and Borate         
                          Mineral Mining.                                       Minerals.                       
XXXXX..............      Phosphate Rock Mining....  E                    1475  Phosphate Rock.                  
XXXXX..............      Other Chemical and         E                    1479  Chemical and Fertilizer Mineral  
                          Fertilizer Mineral                                    Mining, NEC.                    
                          Mining.                                                                               
XXXXX..............      All Other Non-Metallic     R                   *1499  Miscellaneous Non-Metallic       
                          Mineral Mining.                                       Minerals, Except Fuels (except  
                                                                                bituminous limestone and        
                                                                                bituminous sandstone).          
XX.................  Support Activities for                                                                     
                      Mining:                                                                                   
XXX................    Support Activities for                                                                   
                        Mining:                                                                                 
XXXX...............     Support Activities for                                                                  
                         Mining:                                                                                
XXXXX..............      Support Activities for     E                    1081  Metal Mining Services.           
                          Metal Mining.                                                                         
XXXXX..............      Support Activities for     E                    1241  Coal Mining Services.            
                          Coal Mining.                                                                          
XXXXX..............      Drilling Oil and Gas       E                    1381  Drilling Oil and Gas Wells.      
                          Wells.                                                                                
XXXXX..............      Support Activities for     E                    1382  Oil and Gas Field Exploration    
                          Oil and Gas Field                                     Services.                       
                          Exploration.                                                                          
XXXXX..............      Other Oil and Gas Field    E                    1389  Oil and Gas Field Services, NEC. 
                          Support Activities.                                                                   
XXXXX..............      Support Activities for     E                    1481  Non-Metallic Minerals Services,  
                          Non-Metallic Minerals                                 except Fuels.                   
                          Except Fuels.                                                                         
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and 
  * means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                               



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
1011....................................  Iron Ores.......................  Iron Ore Mining.                    
1021....................................  Copper Ores.....................  Copper Mining.                      
1031....................................  Lead and Zinc Ores..............  Lead and Zinc Mining.               
1041....................................  Gold Ores.......................  Gold Mining.                        
1044....................................  Silver Ores.....................  Silver Mining.                      
1061....................................  Ferroalloy Ores, Except                                               
                                           Vanadium:                                                            
                                            Nickel Ore Mining.............  Copper and Nickel Mining (pt).      
                                            Other Ferroalloys.............  Other Metal Ore Mining (pt).        
1081....................................  Metal Mining Services...........  Support Activities for Metal Mining.
1094....................................  Uranium-Radium-Vanadium Ores....  Uranium-Radium-Vanadium Ore Mining. 
1099....................................  Miscellaneous Metal Ores, NEC...  Other Metal Ore Mining (pt).        
1221....................................  Bituminous Coal and Lignite       Bituminous Coal and Lignite Surface 
                                           Surface Mining.                   Mining.                            
1222....................................  Bituminous Coal Underground       Bituminous Coal Underground Mining. 
                                           Mining.                                                              
1231....................................  Anthracite Mining...............  Anthracite Mining.                  
1241....................................  Coal Mining Services............  Support Activities for Coal Mining. 
1311....................................  Crude Petroleum and Natural Gas.  Crude Petroleum and Natural Gas     
                                                                             Extraction.                        
1321....................................  Natural Gas Liquids.............  Natural Gas Liquid Extraction.      
1381....................................  Drilling Oil and Gas Wells......  Drilling Oil and Gas Wells.         
1382....................................  Oil and Gas Field Exploration     Support Activities for Oil and Gas  
                                           Services.                         Field Exploration.                 
1389....................................  Oil and Gas Field Services, NEC.  Other Oil and Gas Field Support     
                                                                             Activities.                        
1411....................................  Dimension Stone.................  Dimension Stone Mining or Quarry.   
1422....................................  Crushed and Broken Limestone....  Crushed and Broken Limestone Mining 
                                                                             or Quarrying.                      
1423....................................  Crushed and Broken Granite......  Crushed and Broken Granite Mining or
                                                                             Quarrying.                         
1429....................................  Crushed and Broken Stone, NEC...  Other Crushed and Broken Stone      
                                                                             Mining or Quarrying (pt).          
1442....................................  Construction Sand and Gravel....  Construction Sand and Gravel Mining.
1446....................................  Industrial Sand.................  Industrial Sand Mining.             
1455....................................  Kaolin and Ball Clay............  Kaolin and Ball Clay Mining.        
1459....................................  Clay, Ceramic, and Refractory     Clay, Ceramic, and Refractory       
                                           Minerals, NEC.                    Mineral Mining.                    
1474....................................  Potash, Soda, and Borate          Potash, Soda, and Borate Mineral    
                                           Minerals.                         Mining.                            
1475....................................  Phosphate Rock..................  Phosphate Rock Mining.              
1479....................................  Chemical and Fertilizer Mineral   Other Chemical and Fertilizer       
                                           Mining, NEC.                      Mineral Mining.                    
1481....................................  Non-Metallic Mineral Services,    Support Activities for Non-Metallic 
                                           Except Fuels.                     Minerals, Except Fuels.            
1499....................................  Miscellaneous Non-Metallic                                            
                                           Minerals, Except Fuels                                               
                                          Bituminous Limestone and          Other Crushed and Broken Stone      
                                           Bituminous Sandstone.             Mining or Quarrying (pt).          

[[Page 26648]]

                                                                                                                
                                          Except Bituminous Limestone and   All Other Non-Metallic Mineral      
                                           Bituminous Sandstone.             Mining.                            
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means time series break has been created that is greater than 3%  
  of the 1992 revenues for the 1987 SIC industry.                                                               



Description of Changes to the U.S. System

    There were no new industries added to the 1997 industry structure 
for this industry sector.
    Oil and Gas Extraction--All oil and gas field services (1987 SIC's 
1381, 1382, 1389) were transferred to the new 1997 subsector Services 
Incidental to Mining. There were no changes in the existing 1987 
industries.
    Coal Mining--1987 SIC 1241, Coal Mining Services, was transferred 
to the new 1997 subsector Services Incidental to Mining. There were no 
changes in the existing 1987 industries.
    Metal Ore Mining--1987 SIC 1061, Ferroalloy Ores, Except Vanadium, 
has been split into two new industries, Copper and Nickel Mining and 
Other Metal Ore Mining. 1987 SIC 1081, Metal Mining Services, was 
transferred to the 1997 subsector Services Incidental to Mining. There 
were no changes in the other existing 1987 industries.
    Non-Metallic Mineral Mining and Quarrying--1987 SIC 1499, 
Miscellaneous Non-Metallic Minerals, except Fuels, has been split 
between Other Crushed and Broken Stone Quarrying and Mining (bituminous 
limestone and bituminous sandstone) and All Other Non-Metallic Mineral 
Mining (all other miscellaneous non-metallic minerals). 1987 SIC 1481, 
Non-Metallic Mineral Services, except Fuels, was transferred to the 
1997 subsector Services Incidental to Mining. There were no changes in 
the other existing 1987 industries.
    Support Activities for Mining--This new subsector was created to 
include all incidental mining services. No new industries were created 
within this subsector; however, six existing industries were 
transferred out of the 1987 SIC industry groups based upon the mineral/
ore mined into this subsector.
    The number of Mining Industries decreased from 31 in 1987 to 30 in 
1997. For time series linkage 30 of the 31 1987 industries are 
comparable within three percent of the 1997 industries.

Part XVI--Proposed New Industry Structure for Paper Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 27

    This document represents the proposed agreement on the structure of 
the North American Industry Classification System (NAICS) for the 
following industries: Paper Manufacturing
    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on November 8 and November 9, 1995 in 
Washington, D.C.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    11/9/95
Mexico..............................  /S/ Enrique Ordaz......    11/9/95
United States.......................  /S/ Jack E.Triplett....    11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Paper Manufacturing
XXX  Pulp, Paper, and Paperboard Mills
XXXX  Pulp Mills
XXXX  Paper Mills
XXXX  Paperboard Mills
XXX  Converted Paper Product Manufacturing
XXXX  Paperboard Container Manufacturing
XXXX  Paper Bag and Coated and Treated Paper Manufacturing
XXXX  Stationery Product Manufacturing
XXXX  Other Converted Paper Product Manufacturing

Attachment 2--North American Industry Classification System

    Draft Classification for:

Paper Manufacturing

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

A General Outline

    The Paper Manufacturing industries produce pulp, paper and 
converted paper products. The manufacture of these products is grouped 
together because they constitute a series of vertically connected 
processes. More than one is often carried out in a single 
establishment. There are essentially three activities. The manufacture 
of pulp involves separating the cellulose fibers from other impurities 
in wood or used paper. The manufacture of paper involves matting these 
fibers into a sheet. Converted paper products are produced from paper 
and other materials by various cutting and shaping techniques.
    The Paper Manufacturing subsector is subdivided into two industry 
groups, the first for the manufacture of pulp and paper and the second 
for the manufacture of converted paper products. Paper making is 
treated as the core activity of the subsector. Therefore, any 
establishment that makes paper (including paperboard), either alone or 
in combination with pulp manufacture or paper converting, is classified 
as a Paper or Paperboard Mill. Establishments that make pulp but no 
paper are classified as Pulp Mills. Pulp Mills, Paper Mills and 
Paperboard Mills comprise the first industry group.
    Establishments that make products from purchased paper and other 
materials make up the second industry group, Converted Paper Product 
Manufacturing. This general activity is then subdivided based, for the 
most part, on process distinctions. Paperboard Container Manufacturing

[[Page 26649]]

uses corrugating and cutting machinery to form paperboard into 
containers. Paper Bag and Coated and Treated Paper Manufacturing 
establishments cut and coat paper. Stationery Product Manufacturing 
establishments produce a variety of paper products used for writing, 
filing and similar applications. Other Converted Paper Product 
Manufacturing includes in particular the conversion of sanitary paper 
stock into such things as tissue paper and disposable diapers.
    An important process used in the Paper Bag and Coated and Treated 
Paper Manufacturing industry is lamination, often combined with 
coating. Lamination and coating produces a composite material with 
improved properties of strength, impermeability and so on. The 
laminated materials may be paper, metal foil or plastic film. While 
paper is often one of the components, it is not always. However, 
lamination of plastic film to plastic film is classified in Rubber and 
Plastic Product Manufacturing because establishments that do this often 
first produce the film. The same situation holds with respect to bags. 
The manufacture of bags from plastic only, whether or not laminated, is 
classified in Rubber and Plastic Product Manufacturing, but all other 
bag manufacturing is classified in this industry.

Limitations and Constraints of the Classification

    In the Paper Manufacturing industry, most activities that were 
identified in one country exist in the others. However, often an 
activity is not economically significant to the same degree in all 
three countries. For example, a relatively broad NAICS industry was 
created for Paper Mills, because the possible subdivisions are small in 
Mexico.
    An operating rule has therefore been adopted for this industry 
subsector that the NAICS industries must be economically significant 
and publishable in all three countries. Each country will publish 
additional categories that comprise subdivisions of NAICS industries, 
to present data for activities that are nationally significant.
    For those users requiring detailed commodity information, each 
country will publish information on the products of these industries. 
Efforts are also underway to harmonize the commodity classifications to 
allow for greater comparability of these statistics.

Relationship to ISIC

    Most 4-digit NAICS industries in this subsector are contained in 
Division 21, Manufacture of Paper and Paper Products, of the current 
International Standard Industrial Classification of all Economic 
Activities (ISIC, Revision 3) of the United Nations. Four of the seven 
NAICS 4-digit industries in this subsector are contained entirely in 
this Division. There are, however, some differences between the two 
systems.
    NAICS includes the manufacture of some products that are made from 
non-paper materials, such as multi-web plastic bags, in Paper Bag and 
Coated and Treated Paper Manufacturing, because the production 
processes are similar regardless of the material. ISIC classifies these 
articles according to their principal component material.
    The other differences with ISIC are minor, but they do result in 
the following NAICS industries not being entirely contained within ISIC 
Division 21. Paper Mills in NAICS includes the manufacture of saturated 
papers, if the paper is made in the same establishment. ISIC treats 
this activity in manufacture of Non-Metallic Mineral Products. It is a 
minor difference. Other Converted Paper Product Manufacturing includes 
some minor activities, such as the manufacture of paper novelties, that 
are classified elsewhere in ISIC.

Some Changes to the National Classifications

    For Canada, the Paper Manufacturing subsector is largely the same 
as the current Canadian classification's Paper and Allied Products 
Industries major group. There are two major differences. The Canadian 
classification includes the manufacture of building board in Paper 
Manufacturing, whereas NAICS includes it in Wood Manufacturing, except 
Furniture because it is in fact made from wood fibers and not paper. 
The saturation of paper products with asphalt is classified in NAICS 
Petroleum and Coal Product Manufacturing, because the saturation 
process is more important to the activity than the material being 
saturated. The structure of this NAICS subsector is similar to that of 
the Canadian classification, but there is less detail.
    For Mexico, the Paper Manufacturing subsector is largely the same 
as the current Mexican classification's Manufacture of Pulp, Paper and 
Paper Products. The main difference is the classification of some 
sanitary products, such as disposable paper diapers, in Textile 
Products. The structure and amount of detail of this NAICS subsector is 
similar to that of the corresponding area of the Mexican 
classification.
    For the United States, there is little difference between the Paper 
Manufacturing subsector of NAICS and the current Paper and Allied 
Products Major Group. Converted foil containers are included in the 
NAICS subsector; they are classified in Metal Fabricating in the 1987 
SIC.

Achievement of Objectives

    The classification meets the objectives for the North American 
Industry Classification System (NAICS). It includes industries that 
group establishments with similar production processes, that is, it 
applies the production-oriented economic concept. The hierarchical 
structure of the classification also follows the production concept. 
Pulp and paper manufacturing are much more capital intensive operations 
than paper converting, and the material inputs are different.
    Other objectives of the NAICS project are not as relevant in this 
area of the classification as in others. These objectives are the 
delineation of new and emerging industries and service industries. The 
industrial sector in question is relatively mature and generally 
produces goods. At the product level, there are numerous developments, 
such as the use of recycled paper in pulp making; however, these do not 
form the basis of establishment organization and hence of industries. 
Therefore, the emphasis is on the objectives listed above.
    The industries have high specialization ratios, and they are 
economically significant. The detail (4-digit) level and structure of 
the classification are balanced in size. This enhances the 
classification's suitability for sampling, data-publishing and other 
aspects of survey operations. Finally, while disruptions to time series 
exist, they have been minimized. The statistical agencies can develop 
statistical ``links'' to enable the re- tabulation of time series on 
the new NAICS classification structure.
    The classification achieves comparability for the three 
participating countries. Based on existing data, all three countries 
expect to be able to publish data regularly at the industry (4-digit) 
level of the structure. All countries agree on the detailed definitions 
of the industries.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the NAICS industry subsector 
presented in Part XVI, Section A--Attachment 1, contain less detail 
than is currently in the U.S. SIC system, and less detail than

[[Page 26650]]

is required to meet important analytical requirements in the U.S. The 
three country agreement on NAICS envisions that each country may 
develop national detailed industries below the NAICS industry level, so 
long as the national detail can be aggregated to the NAICS 
classification, thus assuring full North American comparability.
     The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
industry subsector covered in Part XVI of this notice. For cases where 
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Paper Manufacturing:                                                                       
XXX................    Pulp, Paper and Paperboard                                                               
                        Mills:                                                                                  
XXXX...............     Pulp Mills................  R                   *2611  Pulp Mills (pulp producing mills 
                                                                                only).                          
XXXX...............     Paper Mills:                                                                            
XXXXX..............      Paper Mills, except        R                   *2611  Pulp Mills (pulp mills producing 
                          Newsprint Mills.                                      paper).                         
                                                    ................    *2621  Paper Mills (pt) (except         
                                                                                newsprint mills).               
XXXXX..............      Newsprint Mills..........  N                   *2621  Paper Mills (pt) (newsprint      
                                                                                mills).                         
XXXX...............     Paperboard Mills..........  E                   *2631  Paperboard Mills.                
XXX................    Converted Paper Product                                                                  
                        Manufacturing:                                                                          
XXXX...............     Paperboard Container                                                                    
                         Manufacturing:                                                                         
XXXXX..............      Setup Paperboard Box       E                    2652  Setup Paperboard Boxes.          
                          Manufacturing.                                                                        
XXXXX..............      Corrugated and Solid       E                    2653  Corrugated and Solid Fiber Boxes.
                          Fiber Box Manufacturing.                                                              
XXXXX..............      Fiber Can, Tube, Drum,     E                    2655  Fiber Cans, Tubes, Drums, and    
                          and Similar Product.                                  Similar Products.               
                       Manufacturing:                                                                           
XXXXX..............       Non-Folding Sanitary      R                    2656  Sanitary Food Containers, Except 
                           Food Container                                       Folding.                        
                           Manufacturing.                                                                       
                                                    ................    *2679  Converted Paper and Paperboard   
                                                                                Products, NEC (egg cartons and  
                                                                                other containers from purchased 
                                                                                paper).                         
XXXXX..............      Folding Paperboard Box     E                    2657  Folding Paperboard Boxes,        
                          Manufacturing.                                        Including Sanitary.             
XXXX...............     Paper Bag and Coated and                                                                
                         Treated Paper                                                                          
                         Manufacturing:                                                                         
XXXXX..............      Coated and Laminated       R                   *2671  Packaging Paper and Plastics     
                          Packaging Paper and                                   Film, Coated and Laminated      
                          Plastic Film                                          (single-web paper, paper        
                          Manufacturing.                                        multiweb laminated rolls and    
                                                                                sheets for packaging uses).     
XXXXX..............      Coated and Laminated       R                    2672  Coated and Laminated Paper, NEC. 
                          Paper Manufacturing.                                                                  
                                                    ................    *2679  Converted Paper and Paperboard   
                                                                                Products, NEC (wallpaper and    
                                                                                gift wrap paper).               
XXXXX..............      Plastic, Foil, and Coated  R                   *2673  Plastics, Foil, and Coated Paper 
                          Paper Bag Manufacturing.                              Bags (coated or multiweb        
                                                                                laminated bags).                
XXXXX..............      Uncoated Paper and         E                    2674  Uncoated Paper and Multiwall     
                          Multiwall Bag                                         Bags.                           
                          Manufacturing.                                                                        
XXXXX..............  Laminated Aluminum Foil        N                   *3497  Metal Foil and Leaf (laminated   
                      Manufacturing for Flexible                                aluminum foil rolls and sheets  
                      Packaging Uses.                                           for flexible packaging uses).   
XXXX...............     Stationery Product                                                                      
                         Manufacturing:                                                                         
XXXXX..............      Die-Cut Paper and          N                   *2675  Die-Cut Paper and Paperboard and 
                          Paperboard Office Supply                              Cardboard (file folders,        
                          Manufacturing.                                        tabulating cards, and other     
                                                                                paper and paperboard office     
                                                                                supplies)                       
                                                    ................    *2679  Converted Paper and Paperboard   
                                                                                Products, NEC (paper supplies   
                                                                                for business machines and other 
                                                                                paper office supplies).         
XXXXX..............      Envelope Manufacturing...  E                    2677  Envelopes.                       
XXXXX..............      Stationery, Tablet, and    E                    2678  Stationery, Tablets, and Related 
                          Related Product                                       Products.                       
                          Manufacturing.                                                                        
XXXX...............     Other Converted Paper                                                                   
                         Product Manufacturing:                                                                 
XXXXX..............      Surface-Coated Paperboard  N                   *2675  Die-Cut Paper and Paperboard and 
                          Manufacturing.                                        Cardboard (pasted, lined,       
                                                                                laminated, or surface-coated    
                                                                                paperboard).                    
XXXXX..............      Sanitary Paper Product     E                    2676  Sanitary Paper Products.         
                          Manufacturing.                                                                        
XXXXX..............      Other Converted Paper and  R                   *2675  Die-Cut Paper and Paperboard and 
                          Paperboard Product                                    Cardboard (die-cut paper and    
                          Manufacturing.                                        paperboard products, except     
                                                                                office supplies).               
                                                    ................    *2679  Converted Paper and Paperboard   
                                                                                Products, NEC (Other converted  
                                                                                paper and paperboard products   
                                                                                such as paper filters, crepe    
                                                                                paper, and laminated and tiled  
                                                                                wallboard).                     
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; L--null industry for the U.S.; N--new     
  industry R--revised industry; and * means ``part of''. The abbreviation NEC is used for Not Elsewhere         
  Classified.                                                                                                   


[[Page 26651]]



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                         1987 SIC code                   1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
2611....................................  Pulp Mills:                                                           
                                            Pulp Producing Mills Only.....  Pulp Mills.                         
                                            Pulp and Paper Producing Mills  Paper Mills, except Newsprint Mills 
                                                                             (pt).                              
2621@...................................  Paper Mills:                                                          
                                            Except Newsprint Mills........  Paper Mills, except Newsprint Mills 
                                                                             (pt).                              
                                            Newsprint Mills...............  Newsprint Mills.                    
2631....................................  Paperboard Mills................  Paperboard Mills.                   
2652....................................  Setup Paperboard Boxes..........  Setup Paperboard Box Manufacturing. 
2653....................................  Corrugated and Solid Fiber Boxes  Corrugated and Solid Fiber Box      
                                                                             Manufacturing.                     
2655....................................  Fiber Cans, Tubes, Drums, and     Fiber Can, Tube, Drum, and Similar  
                                           Similar Products.                 Product Manufacturing.             
2656....................................  Sanitary Food Containers, Except  Non-Folding Sanitary Food Container 
                                           Folding.                          Manufacturing (pt).                
2657....................................  Folding Paperboard Boxes,         Folding Paperboard Box              
                                           Including Sanitary.               Manufacturing.                     
2671@...................................  Packaging Paper and Plastics      Coated and Laminated Packaging Paper
                                           Film, Coated and Laminated        and Plastic Film Manufacturing.    
                                           Single-Web Paper, Paper                                              
                                           Multiweb Laminated Rolls and                                         
                                           Sheets for Packaging Uses.                                           
                                          Plastic Packaging Film and Sheet  Unsupported Plastic Packaging Film  
                                                                             and Sheet Manufacturing (Included  
                                                                             in Rubber and Plastic Product      
                                                                             Manufacturing subsector).          
2672....................................  Coated and Laminated Paper, NEC.  Coated and Laminated Paper          
                                                                             Manufacturing (pt).                
2673@...................................  Plastics, Foil, and Coated Paper  Coated and Laminated Paper          
                                           Bags:                             Manufacturing (pt).                
                                            Coated or Multiweb Laminated    Plastic, Foil, and Coated Paper Bag 
                                             Bags.                           Manufacturing.                     
                                            Plastics Bags.................  Unsupported Plastic Bag             
                                                                             Manufacturing (Included in Rubber  
                                                                             and Plastic Product Manufacturing  
                                                                             subsector).                        
2674....................................  Uncoated Paper and Multiwall      Uncoated Paper and Multiwall Bag    
                                           Bags.                             Manufacturing.                     
2675@...................................  Die-Cut Paper and Paperboard and                                      
                                           Cardboard:                                                           
                                            File Folders, Tabulating        Die-Cut Paper and Paperboard Office 
                                             Cards, and Other Paper and      Supply Manufacturing (pt).         
                                             Paperboard Office Supplies.                                        
                                            Pasted, Lined, Laminated, or    Surface-Coated Paperboard           
                                             Surface-Coated Paperboard.      Manufacturing.                     
                                          Die-Cut Paper and Paperboard      Other Converted Paper and Paperboard
                                           Products, Except Office           Product Manufacturing (pt).        
                                           Supplies.                                                            
2676....................................  Sanitary Paper Products.........  Sanitary Paper Product              
                                                                             Manufacturing.                     
2677....................................  Envelopes.......................  Envelope Manufacturing.             
2678....................................  Stationery, Tablets, and Related  Stationery, Tablet, and Related     
                                           Products.                         Product Manufacturing.             
2679@...................................  Converted Paper and Paperboard                                        
                                           Products, NEC:                                                       
                                            Egg Cartons and Other           Non-Folding Sanitary Food Container 
                                             Containers from Purchased       Manufacturing (pt).                
                                             Paper.                                                             
                                            Wallpaper and Gift Wrap Paper.  Coated and Laminated Paper          
                                                                             Manufacturing (pt).                
                                            Paper Supplies for Business     Die-Cut Paper and Paperboard Office 
                                             Machines and Other Paper        Supply Manufacturing (pt).         
                                             Office Supplies.                                                   
                                             Other Converted Paper and      Other Converted Paper and Paperboard
                                             Paperboard Products such as     Product Manufacturing (pt).        
                                             Paper Filters, Crepe Paper,                                        
                                             and Laminated and Tiled                                            
                                             Wallboard.                                                         
3497@...................................  Metal Foil and Leaf:                                                  
                                            Laminated Aluminum Foil Rolls   Laminated Aluminum Foil             
                                             and Sheets for Flexible         Manufacturing for Flexible         
                                             Packaging Uses.                 Packaging Uses.                    
                                            Foil and Foil Containers......  All Other Fabricated Metal Product  
                                                                             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means time series break has been created that is greater than 3%  
  of the 1992 revenues for the 1987 SIC industry.                                                               

Description of Changes to the U.S. System

    Four new industries were added to the 1997 industry structure for 
this industry subsector. The industries created were:
    Newsprint Mills from part of 1987 SIC 2621, Paper Mills, to achieve 
international comparability with Canada.
    Laminated Aluminum Foil Manufacturing for Flexible Packaging Uses 
from part of 1987 SIC 3497, Metal Foil and Leaf, to achieve 
international comparability, and because the production processes are 
similar, regardless of the material used. This is the lamination, not 
creation of foil. Canada has this in CSIC 27, Paper and Allied 
Products.
    Die-Cut Paper and Paperboard Office Supply Manufacturing from part 
of 1987 SIC 2675, Die-Cut Paper and Paperboard and Cardboard, and 1987 
SIC 2679, Converted Paper and Paperboard Products, NEC. These two 1987 
SIC industries (SIC 2675 and SIC 2679) were split and recombined in 
order to achieve international comparability with Canada and Mexico; as 
a result of this split, it was possible for the U.S. to form this new 
industry, which is justified on the production-oriented criterion and 
has the effect of reducing the size of an ``NEC'' category in the 1987 
SIC.
    Surface-Coated Paperboard Manufacturing from part of 1987 SIC 2675, 
Die-Cut Paper and Paperboard and Cardboard, to achieve international 
comparability.
    Two activities were transferred out of 1987 Major Group 26, Paper 
and Allied Products, into the 1997 NAICS Rubber and Plastic Product 
Manufacturing

[[Page 26652]]

subsector, because of similarities of production process. These were:
    Plastic packaging film and sheet from 1987 SIC 2671, Packaging 
Paper and Plastics Film, Coated and laminated plastic bags from 1987 
SIC 2673, Plastics, Foil, and Coated Paper Bags.
    Also, several activities were transferred within the Paper 
Manufacturing subsector. The number of paper manufacturing industries 
increased from 17 in 1987 to 20 in 1997. For time series linkage, 13 of 
the 17 1987 industries are comparable within three percent of the 1997 
industries.

Part XVII--Proposed New Industry Structure for Nonmetallic Mineral 
Product Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 28

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

Nonmetallic Mineral Product Manufacturing

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on November 8 and November 9, 1995 in 
Washington, D.C.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    11/9/95
Mexico..............................  /S/ Enrique Ordaz......    11/9/95
United States.......................  /S/ Jack E. Triplett...    11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Nonmetallic Mineral Product Manufacturing
XXX  Clay Product and Refractories Manufacturing
XXXX  Pottery, Ceramics, and Plumbing Fixture Manufacturing
XXXX  Clay Building Material and Refractories Manufacturing
XXX  Glass, Glass Product and Glass Container Manufacturing
XXXX  Glass and Glass Product Manufacturing
XXXX  Glass Container Manufacturing
XXX  Cement and Concrete Product Manufacturing
XXXX  Hydraulic Cement Manufacturing
XXXX  Ready-Mix Concrete Manufacturing
XXXX  Concrete Pipe, Brick, and Block Manufacturing
XXXX  Other Precast Concrete Product Manufacturing
XXX  Lime, Gypsum and Gypsum Product Manufacturing
XXXX  Lime Manufacturing
XXXX  Gypsum and Gypsum Product Manufacturing
XXX  Miscellaneous Nonmetallic Mineral Product Manufacturing
XXXX  Abrasive Product Manufacturing
XXXX  Other Miscellaneous Nonmetallic Mineral Product Manufacturing

Attachment 2--North American Industry Classification System

    Draft Classification for:

Nonmetallic Mineral Product Manufacturing

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industrial classification for these 
industries.
    The draft classification provides for the subsector Nonmetallic 
Mineral Product Manufacturing. The subsector is sub-divided into five 
industry groups and twelve industries. This subsector will be part of 
the Manufacturing sector of the classification.

A General Outline

    The Nonmetallic Mineral Product Manufacturing industries produce 
such products as bricks, refractories, and ceramic products, and glass 
and glass products, such as plate glass, fiberglass and containers. 
Also included are cement and concrete products, lime, gypsum and other 
nonmetallic mineral products, including abrasive products, cut stone 
and mineral wool. The products are used in a wide range of activities 
from construction and heavy and light manufacturing to articles for 
personal consumption.
    Processes used in the Nonmetallic Mineral Product Manufacturing 
industries include grinding, mixing, cutting, shaping, and honing sand, 
stone, ceramic, and other nonmetallic raw material inputs. Heat often 
is used in the process, and chemicals are frequently mixed to change 
the composition, purity, and chemical properties of the intended 
product. For example, glass is produced by heating silica sand to the 
melting point (sometimes combined with cullet or recycled glass) and 
then drawn or blow molded to the desired shape or thickness. Refractory 
materials are heated and then formed to brick or other shapes for use 
in industrial applications.

Limitations and Constraints of the Classification

    A few factors constrained the structure and detail of the 
classification in the area under consideration. Most of the activities 
that take place in one country exist in the others. However, often an 
activity is not economically significant to the same degree in all 
countries. Another constraint is the small number of producers in some 
countries. For example, separate NAICS industries could not be created 
for refractories or concrete pipe because of confidentiality problems 
in Canada. Similar limitations prevent creation of more detailed 
industries for glass and glass products, mineral wool and other 
nonmetallic minerals products. Each country will publish additional 
categories that comprise subdivisions of NAICS industries, to present 
data for activities that are nationally significant.
    For those users requiring detailed commodity information, each 
country will publish information on the products of these industries. 
Efforts are also underway to harmonize the commodity classifications to 
allow for greater comparability of these statistics.

Relationship to ISIC

    All NAICS 4-digit industries in this subsector are contained in 
Division 26, Manufacture of Nonmetallic Mineral Products, of the 
current International Standard Industrial Classification of All 
Economic Activities (ISIC, Revision 3) of the United Nations. This 
means that one can combine the industries of this NAICS subsector and 
be comparable to ISIC Division 26.

Some Changes to the National Classifications

    For Canada, the production of glass yarn was moved from CSIC 1811, 
Man-Made Fiber and Filament Yarn, and mirrors from CSIC 3259, Other 
Motor Vehicle Accessories and Parts. Other changes consist of a 
restructuring of the existing Canadian subsector for Nonmetallic 
Minerals Product Manufacturing. For example, the production of glass 
products was separated for establishments producing glass, and those 
that purchase glass, then manufacture glass products.
    For Mexico, all changes are within the existing CMAP class for 
Nonmetallic Minerals. Changes include the separation of glass fibers 
(in primary

[[Page 26653]]

glass production in NAICS) from glass insulation; moving the production 
of dead burned dolomite from the refractory industry to the NAICS Lime 
Manufacturing industry; separating decorative glass from glass 
containers; and moving articles made from plaster of Paris to the Other 
Nonmetallic Mineral Product Manufacturing industry.
    For the United States, little change was made to this subsector. 
The most important change was the elimination of the all but non-
existent asbestos product industry. Two remaining products are made by 
establishments formerly classified in this industry: (1) Brake linings 
were moved to the brake parts industry in the Transportation Equipment 
Manufacturing subsector and (2) gaskets were moved to the Other 
Nonmetallic Mineral Product Manufacturing industry. Other changes 
within the subsector were to move dry mix cement from the concrete 
products industry, to move steel wool from the abrasives industry, to 
move some plaster work into the NAICS industry for Gypsum and Gypsum 
Product Manufacturing, and to create new industries for cast concrete 
products.

Achievement of Objectives

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

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the NAICS industry subsector 
presented in Part XVII, Section A--Attachment 1, contain less detail 
than is currently in the U.S. SIC system, and less detail than is 
required to meet important analytical requirements in the U.S. The 
three country agreement on NAICS envisions that each country may 
develop national detailed industries below the NAICS industry level, so 
long as the national detail can be aggregated to the NAICS 
classification, thus assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
industry subsector covered in Part XVII of this notice. For cases where 
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                           1997 NAICS & U.S.           Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Nonmetallic Mineral Product                                                                
                      Manufacturing:                                                                            
XXX................    Clay Product and                                                                         
                        Refractories Manufacturing                                                              
                        Pottery, Ceramics and                                                                   
                        Plumbing Fixture:                                                                       
XXXX...............     Manufacturing:                                                                          
XXXXX..............      Vitreous China Plumbing    E                    3261  Vitreous China Plumbing Fixtures 
                          Fixture and China and                                 and China and Earthenware       
                          Earthenware Fitting and                               Fittings and Bathroom           
                          Bathroom Accessory                                    Accessories.                    
                          Manufacturing.                                                                        
XXXXX..............      Vitreous China, Fine       N                    3262  Vitreous China Table and Kitchen 
                          Earthenware and Other                                 Articles.                       
                          Pottery Product                                                                       
                          Manufacturing.                                                                        
                                                                         3263  Fine Earthenware (Whiteware)     
                                                                                Table and Kitchen Articles.     
                                                                         3269  Pottery Products, NEC.           
XXXXX..............      Porcelain Electrical       E                    3264  Porcelain Electrical Supplies.   
                          Supply Manufacturing.                                                                 
XXXX...............     Clay Building Material and                                                              
                         Refractories                                                                           
                         Manufacturing:                                                                         
XXXXX..............      Brick and Structural Clay  E                    3251  Brick and Structural Clay Tile.  
                          Tile Manufacturing.                                                                   
XXXXX..............      Ceramic Wall and Floor     E                    3253  Ceramic Wall and Floor Tile.     
                          Tile Manufacturing.                                                                   
XXXXX..............      Other Structural Clay      E                    3259  Structural Clay Products, NEC.   
                          Product Manufacturing.                                                                
XXXXX..............     Clay Refractory             E                    3255  Clay Refractories.               
                         Manufacturing.                                                                         
XXXXX..............      Nonclay Refractory         E                    3297  Nonclay Refractories.            
                          Manufacturing.                                                                        
XXX................    Glass, Glass Product and                                                                 
                        Glass Container                                                                         
                        Manufacturing:                                                                          
XXXX...............     Glass and Glass Product                                                                 
                         Manufacturing:                                                                         
XXXXX..............      Flat Glass Manufacturing.  E                    3211  Flat Glass.                      
XXXXX..............      Other Pressed and Blown    E                    3229  Pressed and Blown Glass and      
                          Glass and Glassware                                   Glassware, NEC.                 
                          Manufacturing.                                                                        
XXXXX..............      Glass Product              E                    3231  Glass Products, Made of Purchased
                          Manufacturing Made of                                 Glass.                          
                          Purchased Glass.                                                                      
XXXX...............     Glass Container             E                    3221  Glass Containers.                
                         Manufacturing.                                                                         
XXX................    Cement and Concrete Product                                                              
                        Manufacturing:                                                                          

[[Page 26654]]

                                                                                                                
XXXX...............     Hydraulic Cement            E                    3241  Cement, Hydraulic.               
                         Manufacturing.                                                                         
XXXX...............     Ready-Mix Concrete          E                    3273  Ready-Mixed Concrete.            
                         Manufacturing.                                                                         
XXXX...............     Concrete Pipe, Brick and                                                                
                         Block Manufacturing:                                                                   
XXXXX..............      Concrete Block and Brick   E                    3271  Concrete Block and Brick.        
                          Manufacturing.                                                                        
XXXXX..............      Concrete Pipe              N                   *3272  Concrete Products, Except Block  
                          Manufacturing.                                        and Brick (concrete pipe).      
XXXX...............    Other Precast Concrete       N                   *3272  Concrete Products, Except Block  
                        Product Manufacturing.                                  and Brick (concrete products,   
                                                                                except dry mix concrete, pipe,  
                                                                                bricks and blocks).             
XXX................    Lime, Gypsum and Gypsum                                                                  
                        Product Manufacturing:                                                                  
XXXX...............     Lime Manufacturing........  E                    3274  Lime.                            
XXXX...............     Gypsum and Gypsum Product   R                    3275  Gypsum Products.                 
                         Manufacturing.                                                                         
                                                                        *3299  Nonmetallic Mineral Products, NEC
                                                                                (moldings, ornamental and       
                                                                                architectural plaster work).    
XXX................    Miscellaneous Nonmetallic                                                                
                        Mineral Product                                                                         
                        Manufacturing:                                                                          
XXXX...............     Abrasive Product            R                   *3291  Abrasive Products (except        
                         Manufacturing.                                         metallic scouring sponges and   
                                                                                scouring pads).                 
XXXX...............     Other Miscellaneous                                                                     
                         Nonmetallic Mineral                                                                    
                         Product Manufacturing:                                                                 
XXXXX..............      Cut Stone and Stone        E                    3281  Cut Stone and Stone Products.    
                          Product Manufacturing.                                                                
XXXXX..............      Ground or Treated Mineral  E                    3295  Minerals and Earths, Ground or   
                          and Earth Manufacturing.                              Otherwise Treated.              
XXXXX..............      Mineral Wool               E                    3296  Mineral Wool.                    
                          Manufacturing.                                                                        
XXXXX..............      All Other Miscellaneous    R                   *3272  Concrete Products, Except Block  
                          Nonmetallic Mineral                                   and Brick (dry mixture          
                          Product Manufacturing.                                concrete).                      
                                                                        *3292  Asbestos Products (except brake  
                                                                                pads and linings).              
                                                                        *3299  Nonmetallic Mineral Products, NEC
                                                                                (except moldings, ornamental and
                                                                                architectural plaster work).    
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; L-null industry for the U.S.; N--new      
  industry; R-revised industry; and * means ``part of''. The abbreviation NEC is used for Not Elsewhere         
  Classified.                                                                                                   



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
3211....................................  Flat Glass......................  Flat Glass Manufacturing.           
3221....................................  Glass Containers................  Glass Container Manufacturing.      
3229....................................  Pressed and Blown Glass and       Other Pressed and Blown Glass and   
                                           Glassware, NEC.                   Glassware Manufacturing.           
3231....................................  Glass Products, Made of           Glass Product Manufacturing Made of 
                                           Purchased Glass.                  Purchased Glass.                   
3241....................................  Cement, Hydraulic...............  Hydraulic Cement Manufacturing.     
3251....................................  Brick and Structural Clay Tile..  Brick and Structural Clay Tile      
                                                                             Manufacturing.                     
3253....................................  Ceramic Wall and Floor Tile.....  Ceramic Wall and Floor Tile         
                                                                             Manufacturing.                     
3255....................................  Clay Refractories...............  Clay Refractory Manufacturing.      
3259....................................  Structural Clay Products, NEC...  Other Structural Clay Product       
                                                                             Manufacturing.                     
3261....................................  Vitreous China Plumbing Fixtures  Vitreous China Plumbing Fixture and 
                                           and China and Earthenware         China and Earthenware Fitting and  
                                           Fittings and Bathroom             Bathroom Accessory Manufacturing.  
                                           Accessories.                                                         
3262....................................  Vitreous China Table and Kitchen  Vitreous China, Fine Earthenware and
                                           Articles.                         Other Pottery Product Manufacturing
                                                                             (pt).                              
3263....................................  Fine Earthenware (Whiteware)      Vitreous China, Fine Earthenware and
                                           Table and Kitchen Articles.       Other Pottery Product Manufacturing
                                                                             (pt).                              
3264....................................  Porcelain Electrical Supplies...  Porcelain Electrical Supply         
                                                                             Manufacturing.                     
3269....................................  Pottery Products, NEC...........  Vitreous China, Fine Earthenware,   
                                                                             and Other Pottery Product          
                                                                             Manufacturing (pt).                
3271....................................  Concrete Block and Brick........  Concrete Block and Brick            
                                                                             Manufacturing.                     
3272@...................................  Concrete Products, Except Block   ....................................
                                           and Brick:                                                           
                                            Dry Mixture Concrete..........  Other Miscellaneous Nonmetallic     
                                                                             Mineral Product Manufacturing (pt).
                                            Concrete Pipes................  Concrete Pipe Manufacturing.        
                                             Other Concrete Products......  Other Precast Concrete Product      
                                                                             Manufacturing.                     
3273....................................  Ready-Mixed Concrete............  Ready-Mix Concrete Manufacturing.   
3274....................................  Lime............................  Lime Manufacturing.                 
3275....................................  Gypsum Products.................  Gypsum and Gypsum Product           
                                                                             Manufacturing (pt).                
3281....................................  Cut Stone and Stone Products....  Cut Stone and Stone Product         
                                                                             Manufacturing.                     
3291....................................  Abrasive Products:                ....................................
                                             Metallic Scouring Sponges and  Other Metal Product Manufacturing   
                                             Scouring Pads.                  (pt) (Included in Fabricated Metal 
                                                                             Product Manufacturing subsector).  
                                             Other Abrasive Products......  Abrasive Product Manufacturing.     
3292@...................................  Asbestos Products                 ....................................

[[Page 26655]]

                                                                                                                
                                            Asbestos Brake Linings and      Motor Vehicle Brake System          
                                             Pads.                           Manufacturing (pt) (Included in    
                                                                             Transportation Equipment           
                                                                             Manufacturing subsector).          
                                             Other Asbestos Products......  Other Miscellaneous Nonmetallic     
                                                                             Mineral Product Manufacturing.     
3295....................................  Minerals and Earths, Ground or    Ground or Treated Mineral and Earth 
                                           Otherwise Treated.                Manufacturing.                     
3296....................................  Mineral Wool....................  Mineral Wool Manufacturing.         
3297....................................  Nonclay Refractories............  Nonclay Refractory Manufacturing.   
3299@...................................  Nonmetallic Mineral Products,     ....................................
                                           NEC.                                                                 
                                          Moldings, Ornamental and          Gypsum and Gypsum Product           
                                           Architectural Plaster Work.       Manufacturing (pt).                
                                          Other Nonmetallic Mineral         Other Miscellaneous Nonmetallic     
                                           Products.                         Mineral Product Manufacturing (pt).
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of''. @ means time series break has been created that is greater than 3%  
  of the 1992 revenues for the 1987 SIC industry.                                                               



Description of Changes to the U.S. System

    1987 SIC 3272, Concrete Products, Except Block and Brick, was split 
into three new industries in the 1997 structure for this industry 
subsector as follows:
    Concrete Pipe Manufacturing for international comparability.
    Other Precast Concrete Product Manufacturing.
    Other Miscellaneous Nonmetallic Mineral Product Manufacturing.
    Two activities were transferred out of 1987 Major Group 32, Stone, 
Clay, Glass and Concrete Products:
    Metallic scouring sponges and scouring pads from 1987 SIC 3291, 
Abrasive Products, were moved into the 1997 NAICS Fabricated Metal 
Product Manufacturing subsector to achieve comparability with Canada 
and Mexico and to better meet production concept criteria.
    Asbestos brake linings and pads from 1987 SIC Code 3292, Asbestos 
Products, were moved into the 1997 NAICS Transportation Equipment 
Manufacturing subsector to match Canada and Mexico, and because the 
production of brake linings from asbestos and non-asbestos materials 
are similar processes.
    1987 SIC 3262, Vitreous China Table and Kitchen Articles; 1987 SIC 
3263, Fine Earthenware (Whiteware) and Kitchen Articles; and 1987 SIC 
3269, Pottery Products, Not Elsewhere Classified, were combined into 
the new Vitreous China, Fine Earthenware and Other Pottery Product 
Manufacturing national industry. The combination was made because the 
1987 SIC's were too small to warrant separation. The new national 
industry, however, shows strong production concept characteristics.
    Also, some activities were transferred within the Nonmetallic 
Mineral Product Manufacturing subsector. The number of nonmetallic 
mineral product manufacturing industries decreased by two to 24, from 
the 1987 SIC. For time series linkage, 23 of the 26 1987 industries are 
comparable within three percent of the 1997 industries.

Part XVIII--Proposed New Industry Structure for Primary Metal 
Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 29

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

Primary Metal Manufacturing

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on November 8 and November 9, 1995 in 
Washington, D.C.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    11/9/95
Mexico..............................  /S/ Enrique Ordaz......    11/9/95
United States.......................  /S/ Jack E. Triplett...    11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Primary Metal Manufacturing
XXX  Iron and Steel Mills and Ferroalloy Manufacturing
XXXX  Iron and Steel Mills and Ferroalloy Manufacturing
XXX  Steel Products Made from Purchased Steel
XXXX  Iron and Steel Pipe and Tube Manufacturing from Purchased 
Steel
XXXX  Rolling and Drawing of Purchased Steel
XXX  Smelting, Refining, Rolling, Drawing, and Extruding of Aluminum
XXXX  Smelting, Refining Rolling, Drawing and Extruding of Aluminum
XXX  Smelting, Refining, Rolling, Drawing, and Extruding of Other 
Nonferrous Metal
XXXX  Smelting and Refining of Nonferrous Metal Except Aluminum
XXXX  Rolling, Drawing and Extruding Copper
XXXX  Rolling, Drawing and Extruding of Nonferrous Metal Except 
Copper or Aluminum
XXX  Metal Castings
XXXX  Ferrous Castings
XXXX  Nonferrous Castings

Attachment 2--North American Industry Classification System

Draft Classification for:
Primary Metal Manufacturing

    Representatives of the statistical agencies of Canada, Mexico and 
the United States agree to a draft industry classification for these 
industries.
    The draft classification provides for the subsector, Primary Metal 
Manufacturing. This subsector is divided into five industry groups and 
nine industries. The subsector is part of the Manufacturing sector.

A General Outline

    The Primary Metal Manufacturing industries are well defined and 
include

[[Page 26656]]

the production of steel and steel products; the smelting, refining, and 
rolling of nonferrous metals; and the production of metal castings. The 
processes employed in these industries include the use of blast 
furnaces to produce iron, and the use of basic oxygen and other steel 
making furnaces to produce steel. Rolling, drawing, and extruding 
processes to produce such products as pipe and tube, wire, and sheet 
are also used in this subsector. Similar processes are used to produce 
the nonferrous metal and metal products also included in this 
subsector.
    A structure along the lines of function or process (refining and 
smelting, or rolling, drawing, and extruding) for all metals was 
considered for this subsector. It was not adopted, because: (1) The 
processes, although they have some similarity, are clearly distinct for 
steel versus nonferrous metals. Within nonferrous metal manufacturing, 
the processes are also different. For example, the primary reduction of 
aluminum involves the massive use of electricity, where the primary 
reduction of copper is accomplished by using heat and chemicals; (2) 
establishments that roll, draw or extrude are highly specialized by 
type of nonferrous metal; (3) due to the combination of process 
activities in aluminum manufacture in Mexico, a separate trilateral 
NAICS industry could not be created that would split primary aluminum 
from aluminum, rolling, drawing, and extrusion. For this reason, a 
separate NAICS 3-digit and 4-digit industry group and industry was 
created for Smelting, Refining, Rolling, Drawing and Extruding 
Aluminum, and a 3-digit NAICS group, Smelting, Refining, Rolling, 
Drawing, and Extruding of Other Nonferrous Metal, that parallels the 3-
digit structure for Aluminum. The ``Other'' nonferrous group, however, 
contains 4-digit levels for process industries for copper and for 
nonferrous metals, except aluminum and copper.
    The Iron and Steel Mills and Ferroalloy Manufacturing industry 
group comprises establishments that produce steel products, beginning 
with the treatment of iron ore, using furnaces or direct reduction 
techniques and establishments that begin their process with the 
purchase of iron, pig iron, or scrap. Establishments that produce 
ferroalloys are also included in this subsector. Establishments 
classified in the NAICS industry Rolling and Drawing of Purchased Steel 
produce sheet and plate, pipe and tube, and wire drawn from purchased 
steel. The subsector also includes establishments that produce wire 
rods, bars, plates, sheet, and wire from purchased primary shapes.
    The Smelting, Refining, Rolling, Drawing, and Extruding of Aluminum 
and Other Nonferrous Metal industry groups include establishments that 
produce primary nonferrous metals and those that produce nonferrous 
metal products such as sheet, foil, shapes, etc.

Limitations and Constraints of the Classification

     In the Primary Metal Manufacturing subsector, most activities that 
were identified in one country exist in the others. However, the 
combination of activities within establishments varied across the three 
countries resulting in higher aggregations of some NAICS industries. 
For example, broad NAICS classes were created for nonferrous castings, 
due to production overlap in Mexico. Similarly, often an activity is 
not economically significant to the same degree in all countries. For 
example, a separate NAICS industry cannot be created for the smelting 
and refining of copper, because the resulting industries are too small 
in Canada.
    Each country may publish additional national industries that 
comprise subdivisions of NAICS industries, to present data for 
activities that are nationally significant. For those users requiring 
detailed commodity information, each country will publish information 
on the products of these industries. Efforts are also underway to 
harmonize the commodity classifications to allow for greater 
comparability of these statistics.

Relationship to ISIC

    Each of the NAICS industries created in this subsector can be 
assigned without any subdivision to Division 27, Manufacture of Basic 
Metals, of the current International Standard Industrial Classification 
of all Economic Activities (ISIC Revision 3) of the United Nations. The 
movement of steel and nonferrous wire drawing (CSIC's 3052 & 3381), and 
precious metal refining (CSIC 3922), for Canada; of molding of metal 
castings (CMAP 381100) for Mexico; and of the production of alumina 
(1987 SIC 2819 pt), for the United States are all changes that enhance 
the NAICS/ISIC relationship. This means that one can combine the 
industries of this subsector and be comparable to ISIC Division 27.

Some Changes to the National Classifications

    For Canada, an important improvement for both production precepts 
and for international comparability was the movement of ferrous and 
nonferrous wire drawing to this subsector from other areas. Smelting 
and refining of precious metals was moved for the same reasons. Other 
changes for Canada were internal to the existing subsector structure. 
These changes generally involved realignment of industries to achieve 
three country comparability, as well as to better meet the production 
process principle. Some examples are the split of the Other Primary 
Steel industry to match the NAICS industries for Iron and Steel Mills 
and Ferroalloy Manufacturing and Rolling and Drawing of Purchased 
Steel, and the separation of various types of castings from other 
ferrous or nonferrous manufacturing to match agreed upon NAICS classes.
    For Mexico, the only structural modification was to move the 
production of ferrous and nonferrous castings from the current CMAP 
classes for machinery. This change allows for three country 
comparability, and improves the production definition of this 
subsector. Other changes are internal to the existing Mexican 
structure, but like those made for Canada above, they were made to both 
achieve an international NAICS level, while at the same time, they are 
sound production industry moves. An example is splitting the production 
of rods and structural shapes, pipe and tube and wire made in a steel 
making facility from those made from purchased primary steel shapes.
    In the United States, a significant structural change was to move 
the production of alumina from the Chemical Product Manufacturing 
subsector. This change both matches the Canadian and Mexican treatment, 
and groups the basic reduction of this ore with metal manufacturing 
rather than in a chemical processing group. Other changes entailed the 
realignment of internal nonferrous smelting, rolling and drawing, 
mostly to achieve three country compatibility.

Achievement of Objectives

    The classification meets the objectives for the North American 
Industry Classification System. It includes industries that group 
establishments with similar production processes, that is, it applies 
the production-oriented economic concept. The hierarchical structure of 
the classification also follows the production concept.
    The classification achieves comparability for the three 
participating countries. Based on existing data, all three countries 
expect to be able to publish data regularly at the industry (4-digit) 
level of the structure. All

[[Page 26657]]

countries agree on the definitions of industries.
    Other objectives of the NAICS project are not as relevant in this 
area of the classification as in others. These objectives are the 
delineation of new and emerging industries, service industries and 
industries engaged in the production of advanced technologies. The 
industrial sector in question is relatively mature, generally produces 
goods and employs relatively stable technology. Therefore, the emphasis 
is on the objectives listed above.
    The industries have high specialization ratios, and they are 
economically significant. The classification is suitable for sampling, 
data-publishing, and other aspects of survey operations.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the NAICS industry subsector 
presented in Part XIX, Section A--Attachment 1, contain less detail 
than is currently in the U.S. SIC system, and less detail than is 
required to meet important analytical requirements in the U.S. The 
three country agreement on NAICS envisions that each country may 
develop national detailed industries below the NAICS industry level, so 
long as the national detail can be aggregated to the NAICS 
classification, thus assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
industry subsector covered in Part XIX of this notice. For cases where 
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                           1997 NAICS & U.S.           Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Primary Metal Manufacturing:                                                               
XXX................    Iron and Steel Mills and                                                                 
                        Ferroalloy Manufacturing:                                                               
XXXX...............     Iron and Steel Mills and                                                                
                         Ferroalloy Manufacturing:                                                              
XXXXX..............      Iron and Steel Mills.....  N                    3312  Steel Works, Blast Furnaces, and 
                                                                                Rolling Mills (except stand-    
                                                                                alone cake ovens).              
                                                    ................    *3399  Primary Metal Products, NEC      
                                                                                (ferrous powder, paste, flakes, 
                                                                                etc.).                          
XXXXX..............      Electrometallurgical       R                   *3313  Electrometallurgical Products,   
                          Ferroalloy Product                                    except Steel (ferroalloys).     
                          Manufacturing.                                                                        
XXX................    Steel Products Made from                                                                 
                        Purchased Steel:                                                                        
XXXX...............     Iron and Steel Pipe and     E                    3317  Steel Pipe and Tubes.            
                         Tube Manufacturing from                                                                
                         Purchased Steel.                                                                       
XXXX...............     Rolling and Drawing of                                                                  
                         Purchased Steel:                                                                       
XXXXX..............      Cold-Rolled Steel Shape    E                    3316  Cold-Rolled Steel Sheet, Strip,  
                          Manufacturing.                                        and Bars.                       
XXXXX..............      Steel Wire Drawing.......  R                   *3315  Steel Wiredrawing and Steel Nails
                                                                                and Spikes (steel wire drawing).
XXX................    Smelting, Refining,                                                                      
                        Rolling, Drawing and                                                                    
                        Extruding of Aluminum:                                                                  
XXXX...............     Smelting, Refining,                                                                     
                         Rolling, Drawing and                                                                   
                         Extruding of Aluminum:                                                                 
XXXXX..............      Primary Refining of        E                    3334  Primary Production of Aluminum.  
                          Aluminum.                                                                             
XXXXX..............      Secondary Smelting of      N                   *3341  Secondary Smelting and Refining  
                          Aluminum.                                             of Nonferrous Metals (aluminum).
                                                    ................    *3399  Primary Metal Products, NEC      
                                                                                (aluminum powder, paste, flakes,
                                                                                etc.)                           
XXXXX..............      Alumina Manufacturing....  N                   *2819  Industrial Inorganic Chemicals,  
                                                                                NEC (alumina).                  
XXXXX..............      Aluminum Sheet, Plate,     E                    3353  Aluminum Sheet, Plate, and Foil. 
                          and Foil Manufacturing.                                                               
XXXXX..............      Aluminum Extruded Product  E                    3354  Aluminum Extruded Products.      
                          Manufacturing.                                                                        
XXXXX..............      Other Aluminum Rolling     R                    3355  Aluminum Rolling and Drawing,    
                          and Drawing                                           NEC.                            
                                                    ................    *3357  Drawing and Insulating of        
                                                                                Nonferrous Wire (aluminum wire  
                                                                                drawing).                       
XXX................    Smelting, Refining,                                                                      
                        Rolling, Drawing, and                                                                   
                        Extruding of Other                                                                      
                        Nonferrous Metal:                                                                       
XXXX...............     Smelting and Refining of                                                                
                         Nonferrous Metal Except                                                                
                         Aluminum:                                                                              
XXXXX..............      Primary Smelting and       E                    3331  Primary Smelting and Refining of 
                          Refining of Copper.                                   Copper.                         
XXXXX..............      Primary Smelting and       E                    3339  Primary Smelting and Refining of 
                          Refining of Nonferrous                                Nonferrous Metals, Except Copper
                          Metal, Except Copper and                              and Aluminum.                   
                          Aluminum.                                                                             
XXXXX..............      Secondary Smelting and     R                   *3313  Electrometallurgical Products,   
                          Refining of Nonferrous                                Except Steel (except ferrous    
                          Metals.                                               alloys).                        
                                                    ................    *3341  Secondary Smelting and Refining  
                                                                                of Nonferrous Metals (except    
                                                                                aluminum).                      
                                                    ................    *3399  Primary Metal Products, NEC      
                                                                                (nonferrous powders, flakes,    
                                                                                paste, etc., except aluminum).  
XXXX...............     Rolling, Drawing and                                                                    
                         Extruding Copper:                                                                      
XXXXX..............      Rolling, Drawing and       R                    3351  Rolling, Drawing, and Extruding  
                          Extruding Copper.                                     of Copper.                      
XXXXX..............      Drawing of Copper Wire...  N                   *3357  Drawing and Insulating of        
                                                                                Nonferrous Wire (copper wire    
                                                                                drawing).                       

[[Page 26658]]

                                                                                                                
XXXX...............      Rolling, Drawing, and      R                    3356  Rolling, Drawing, and Extruding  
                          Extruding of Nonferrous                               of Nonferrous Metals, Except    
                          Metal Except Copper or                                Copper and Aluminum.            
                          Aluminum.                                                                             
                                                    ................    3357*  Drawing and Insulating of        
                                                                                Nonferrous Wire (wire drawing   
                                                                                except copper or aluminum).     
XXX................    Metal Castings:                                                                          
XXXX...............     Ferrous Castings:                                                                       
XXXXX..............      Gray, Malleable, and       R                    3321  Gray and Ductile Iron Foundries. 
                          Ductile Iron Foundries.                                                               
                                                    ................     3322  Malleable Iron Foundries.        
XXXXX..............      Steel Investment           E                    3324  Steel Investment Foundries.      
                          Foundries.                                                                            
XXXXX..............      Steel Foundries..........  E                    3325  Steel Foundries, NEC.            
XXXX...............     Nonferrous Castings:                                                                    
XXXXX..............      Aluminum Die-Castings....  E                    3363  Aluminum Die-Castings.           
XXXXX..............      Nonferrous Die-Castings,   E                    3364  Nonferrous Die-Castings, Except  
                          Except Aluminum.                                      Aluminum.                       
XXXXX..............      Aluminum Foundries.......  E                    3365  Aluminum Foundries.              
XXXXX..............      Copper Foundries.........  E                    3366  Copper Foundries.                
XXXXX..............      Nonferrous Foundries,      E                    3369  Nonferrous Foundries, Except     
                          Except Aluminum and                                   Aluminum and Copper.            
                          Copper.                                                                               
----------------------------------------------------------------------------------------------------------------
 The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and
  * means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                               



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
2819@...................................  Industrial Inorganic Chemicals,                                       
                                           NEC:                                                                 
                                            Alumina.......................       Alumina Manufacturing (pt).    
                                            Activated Carbon and Charcoal.  Other Miscellaneous Chemical        
                                                                             Preparation Manufacturing (pt)     
                                                                             (Included in Chemical Product      
                                                                             Manufacturing subsector).          
                                            Inorganic Dyes................  Inorganic Dyes and Pigments         
                                                                             Manufacturing (pt) (Included in    
                                                                             Chemical Product Manufacturing     
                                                                             subsector).                        
                                            Other.........................  Other Miscellaneous Inorganic       
                                                                             Chemical Manufacturing (pt)        
                                                                             (Included in Chemical Manufacturing
                                                                             subsector).                        
3312@...................................  Steel Works, Blast Furnaces       Iron and Steel Mills.               
                                           (Including Coke Ovens),and                                           
                                           Rolling Mills.                                                       
                                           Coke Ovens, not Integrated With  Other Petroleum and Coal Product    
                                                     Steel Mills             Manufacturing (pt) (Included in    
                                                                             Petroleum and Coal Product         
                                                                             Manufacturing subsector).          
3313@...................................  Electrometallurgical Products,                                        
                                           Except Steel:                                                        
                                            Ferroalloys...................  Electrometallurgical Ferroalloy     
                                                                             Product Manufacturing.             
                                            Nonferrous Alloys.............  Secondary Smelting and Refining of  
                                                                             Nonferrous Metal (pt).             
3315@...................................  Steel Wiredrawing and Steel                                           
                                           Nails and Spikes:                                                    
                                            Steel Wire Drawing............  Steel Wire Drawing.                 
                                            Nails, Spikes, Paper clips,     Miscellaneous Fabricated Wire       
                                             Wire,.                          Product Manufacturing (pt)         
                                          Not Made in Wire Drawing Plants.   (Included in Fabricated Metal      
                                                                             Product Manufacturing subsector).  
3316....................................  Cold-Rolled Steel Sheet, Strip,   Cold-Rolled Steel Shape             
                                           and Bars.                         Manufacturing.                     
3317....................................  Steel Pipe and Tubes............  Iron and Steel Pipe and Tube        
                                                                             Manufacturing from Purchased Steel.
3321....................................  Gray and Ductile Iron Foundries.  Gray, Malleable, and Ductile Iron   
                                                                             Foundries (pt).                    
3322....................................  Malleable Iron Foundries........  Gray Malleable and Ductile Iron     
                                                                             Foundries (pt).                    
3324....................................  Steel Investment Foundries......  Steel Investment Foundries.         
3325....................................  Steel Foundries, NEC............  Steel Foundries (pt).               
3331....................................  Primary Smelting and Refining of  Primary Smelting and Refining of    
                                           Copper.                           Copper (pt).                       
3334....................................  Primary Production of Aluminum..  Primary Refining of Aluminum.       
3339....................................  Primary Smelting and Refining of  Primary Smelting and Refining of    
                                           Nonferrous Metals, Except         Nonferrous Metals, Except Copper   
                                           Copper and Aluminum.              and Aluminum (pt).                 
3341@...................................  Secondary Smelting and Refining                                       
                                           of Nonferrous Metals:                                                
                                            Aluminum......................  Secondary Smelting of Aluminum (pt).
                                            Except Aluminum...............  Secondary Smelting and Refining of  
                                                                             Nonferrous Metals (pt).            
3351....................................  Rolling, Drawing, and Extruding   Rolling, Drawing, and Extruding of  
                                           of Copper.                        Copper.                            
3353....................................  Aluminum Sheet, Plate, and Foil.  Aluminum Sheet, Plate, and Foil     
                                                                             Manufacturing.                     
3354....................................  Aluminum Extruded Products......  Aluminum Extruded Product           
                                                                             Manufacturing.                     
3355....................................  Aluminum Rolling and Drawing,     Other Aluminum Rolling and Drawing, 
                                           NEC.                              (pt).                              
3356....................................  Rolling, Drawing, and Extruding   Rolling, Drawing, and Extruding of  
                                           of Nonferrous Metals, Except      Nonferrous Metals Except Copper or 
                                           Copper and Aluminum.              Aluminum (pt).                     
3357@...................................  Drawing and Insulating of                                             
                                           Nonferrous Wire:                                                     

[[Page 26659]]

                                                                                                                
                                            Aluminum Wire Drawing.........  Other Aluminum Rolling and Drawing  
                                                                             (pt).                              
                                            Copper Wire Drawing...........  Drawing of Copper Wire.             
                                            Wire Drawing Except Copper or   Rolling, Drawing, and Extruding of  
                                             Aluminum..                      Nonferrous Metals Except Copper or 
                                                                             Aluminum (pt).                     
                                            Communication and Energy Wire-- Communication and Energy Wire       
                                             Insulating Only..               Manufacturing (Included in         
                                                                             Electrical Equipment, Appliance and
                                                                             Component Manufacturing subsector).
3363....................................  Aluminum Die-Castings...........  Aluminum Die-Castings.              
3364....................................  Nonferrous Die-Castings, Except   Nonferrous Die-Castings, Except     
                                           Aluminum.                         Aluminum.                          
3365....................................  Aluminum Foundries..............  Aluminum Foundries.                 
3366....................................  Copper Foundries................  Copper Foundries.                   
3369....................................  Nonferrous Foundries, Except      Nonferrous Foundries, Except        
                                           Aluminum and Copper.              Aluminum and Copper.               
3398....................................  Metal Heat Treating.............  Metal Heat Treating (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
3399@...................................  Primary Metal Products, NEC:                                          
                                            Ferrous Powder, Paste, Flakes,  Steel Mills (pt).                   
                                             etc..                                                              
                                            Aluminum Powder, Paste,         Secondary Smelting of Aluminum (pt).
                                             Flakes, etc..                                                      
                                            Other Nonferrous Powder,        Secondary Smelting and Refining of  
                                             Paste, Flakes, etc..            Nonferrous Metals (pt).            
                                            Nonferrous Nails, Brads,        Miscellaneous Fabricated Wire       
                                             Staples, etc..                  Product Manufacturing (pt)         
                                                                             (Included in Fabricated Metal      
                                                                             Product Manufacturing subsector).  
                                            Laminated Steel...............  Electroplating, Plating, Polishing, 
                                                                             Anodizing, and Coloring (pt)       
                                                                             (Included in Fabricated Metal      
                                                                             Product Manufacturing subsector).  
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of'', @ means time series break has been created that is greater than 3%  
  of the 1992 value of shipments for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere      
  Classified.                                                                                                   



Description of Changes to the U.S. System

    A number of the changes listed in this section were made for 
reasons of international comparability. Where one or more of the three 
North American countries had different definitions of an industry 
classification, adjustments to the definitions in one or more countries 
were required. In constructing NAICS, the three countries agreed to 
move, where change was required to attain international comparability, 
in the direction of the country or countries whose existing 
classification definitions most closely corresponded to the production-
oriented concept adopted for NAICS. Cases where the U.S. changed are 
listed below; other cases where Canada or Mexico moved toward the U.S. 
classification are not, of course, listed in this section.
    Four new industries were added to the 1997 industry structure for 
this industry subsector. New industries were created for:
    Iron and Steel Mills, from 1987 SIC 3312, Steel Works, Blast 
Furnaces, and Rolling Mills, and part of 1987 SIC 3399, Primary Metal 
Products, NEC, for comparability with Canada and Mexico, and because 
the production processes include direct reduction and other furnace 
processes similar to those used in manufacturing steel.
    Secondary Smelting of Aluminum from part of 1987 SIC 3341, 
Secondary Smelting and Refining of Nonferrous Metals, and part of 1987 
SIC 3399, Primary Metal Products, NEC, because of specialized 
production processes involved, and for international comparability.
    Alumina Manufacturing from part of 1987 SIC 2819, Industrial 
Inorganic Chemicals, in the 1987 Major Group 28, Chemicals and Allied 
Products, to achieve international comparability. Canada has this in 
CSIC 2951, Primary Production of Aluminum.
    Drawing of Copper Wire from part of 1987 SIC 3357, Drawing and 
Insulating of Nonferrous Wire, for international comparability, and 
because it is a specialized production process.
    One complete industry was transferred out of 1987 Major Group 33, 
Primary Metals.
    Metal Heat Treating was transferred into the 1997 subsector 
Fabricated Metal Product Manufacturing. The move improves the 
production process classification for this activity.
    Five activities were transferred out of 1987 Major Group 33, 
Primary Metals, and are described more fully in their new respective 
NAICS subsectors.
    Nails, spikes, paper clips, and wire, not made in wire drawing 
plants, were transferred from 1987 SIC 3315, Steel Wiredrawing and 
Steel Nails and Spikes, into Miscellaneous Fabricated Wire Product 
Manufacturing in the 1997 subsector Fabricated Metal Product 
Manufacturing.
    Communication and energy wire-insulating only, was transferred from 
1987 SIC 3357, Drawing and Insulating of Nonferrous Wire, into 
Communication and Energy Wire Manufacturing in 1997 subsector 
Electrical Equipment, Appliance and Component Manufacturing.
    Nonferrous nails, brads, staples, etc. were transferred from 1987 
SIC 3399, Primary Metal Products, NEC, into Miscellaneous Fabricated 
Wire Product Manufacturing in the 1997 subsector Fabricated Metal 
Product Manufacturing.
    Laminated steel was transferred from 1987 SIC 3399, Primary Metal 
Products, NEC, into Electroplating, Polishing, Anodizing, and Coloring 
in 1997 subsector Fabricated Metal Product Manufacturing.
    Coke ovens, not operated with a blast furnace were transferred from 
part of 1987 SIC 3312, Blast Furnaces and Steel Mills, into Other 
Petroleum and Coal Product Manufacturing in the 1997 NAICS subsector, 
Petroleum and Coal Product Manufacturing.
    Also, several activities were transferred within the subsector for 
Primary Metal Manufacturing. The number of primary metal industries 
remained the same between 1997 and 1987 at 26. For time series linkage, 
20 of the 26 1987 industries are comparable within three percent of the 
1997 industries.

[[Page 26660]]

Part XIX--Proposed New Industry Structure for Miscellaneous 
Manufacturing

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 30

    This Document represents the proposed agreement on the structure of 
the North American Industry Classification System (NAICS) for the 
following industries: Miscellaneous Manufacturing
    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries.
    This NAICS structure was presented and provisionally accepted at 
the NAICS Committee meeting held on November 8 and November 9, 1995 in 
Washington, D.C.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    11/9/95
Mexico..............................  /S/ Enrique Ordaz......    11/9/95
United States.......................  /S/ Jack E. Triplett...    11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Miscellaneous Manufacturing
XXX  Medical Equipment and Supply Manufacturing
XXXX  Medical Equipment and Supply Manufacturing
XXX  Cotton Ginning
XXXX  Cotton Ginning
XXX  Other Miscellaneous Manufacturing
XXXX  Jewelry and Silverware Manufacturing
XXXX  Sporting and Athletic Good Manufacturing
XXXX  Doll, Toy, and Game Manufacturing
XXXX  Office Supply, Except Paper Manufacturing
XXXX  All Other Miscellaneous Manufacturing

Attachment 2--North American Industry Classification System

    Draft Classification for:

Miscellaneous Manufacturing

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industrial classification for these 
industries.
    The draft classification provides for the subsector, Miscellaneous 
Manufacturing. This subsector contains three industry groups and seven 
industries. The subsector will be part of the Manufacturing sector of 
the classification.

A General Outline

    The Miscellaneous Manufacturing industries produce a wide range of 
products that cannot be logically classified in other, specific 
subsectors in manufacturing. Products as diverse as medical equipment 
and supplies, ginned cotton, jewelry, sporting goods, toys and office 
supplies are produced by the industries in the subsector.
    Because this subsector is an ``other'' grouping, the processes used 
vary significantly. For example, for cotton ginning, the separation of 
the seed from the cotton lint, differs significantly from the 
fabrication processes in making dolls or toys. Other processes used in 
this subsector include the melting and shaping of precious metals to 
make jewelry, and the bending, forming and assembly used in making 
medical products.

Limitations and Constraints of the Classification

    In the Miscellaneous Manufacturing industries, most activities that 
were identified in one country exist in the others. However, often an 
activity is not economically significant to the same degree in all 
countries. In some instances, separate industries could not be created 
due to size constraints. For example, a separate industry for musical 
instruments was too small in Canada to support a separate NAICS 
industry. Each country will publish additional categories that comprise 
subdivisions of NAICS industries, to present data for activities that 
are nationally significant.
    For those users requiring detailed commodity information, each 
country will publish information on the products of these industries. 
Efforts are also underway to harmonize the commodity classifications to 
allow for greater comparability of these statistics.

Relationship to ISIC

    Three of the seven NAICS industries created in this subsector are 
contained in a single division of the International Standard Industrial 
Classification of all Economic Activities (ISIC Revision 3) of the 
United Nations, without any subdivision. Two 4-digit NAICS industries 
in this subsector, Sporting and Athletic Good Manufacturing and Doll, 
Toy and Game Manufacturing, are contained within ISIC Division 36, 
Miscellaneous Manufacturing, and the third, Cotton Ginning, is 
contained within ISIC Division 01, Agriculture, Hunting and Related 
Service Activities.
    The following NAICS industries cannot be assigned to a single ISIC 
division without being sub-divided: Medical Equipment and Supply 
Manufacturing; Jewelry and Silverware Manufacturing; Office Supply, 
Except Paper, Manufacturing; and Other Miscellaneous Manufacturing. The 
Jewelry and Silverware industry would fall within a single ISIC 
division, except for watch jewels and watch bands.

Some Changes to the National Classifications

    The most significant change for Canada are the activities that 
moved out of Miscellaneous Manufacturing and into Computer and 
Electronic Product Manufacturing. These are the manufacturing of 
navigational, measuring and control instruments. Another significant 
change is the creation of the Medical Equipment and Supply 
Manufacturing industry. This industry is created by combining 
activities from nine separate industries in six different major groups. 
Other industries that moved from the Miscellaneous Manufacturing 
subsector include the Sign and Display industry and the Floor Tile 
Linoleum and Coated Fabrics industry.
    The creation of Medical Equipment and Supply Manufacturing 
industries is the most significant change for Mexico. For Mexico, this 
industry is created by combining activities from 14 separate industries 
in three subsectors. Another structural change for Mexico is the 
movement of cotton ginning from Basic Textile Manufacturing to 
Miscellaneous Manufacturing. The NAICS industry, Doll, Toy and Game 
Manufacturing, includes the manufacture of wood and plastic toys that 
the Mexican classification places in wood products and plastics 
products, respectively.
    The most significant changes for the United States are two 
structural changes. The Medical Equipment and Supply Manufacturing 
industry group moves from Instruments and Related Products to 
Miscellaneous Manufacturing and cotton ginning, formerly in 1987 SIC 
Major Group, Agricultural Services, is moved to Miscellaneous 
Manufacturing. In addition, several activities moved out of 
miscellaneous manufacturing. Hard Surface Floor Covering was moved from 
Miscellaneous Manufacturing to Rubber and Plastic Product 
Manufacturing. Signs and Advertising Specialties was eliminated as a 
separate industry and

[[Page 26661]]

the activities moved to various industries.

Achievement of Objectives

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

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the NAICS industry subsector 
presented in Part XIX, Section A--Attachment 1, contain less detail 
than is currently in the U.S. SIC system, and less detail than is 
required to meet important analytical requirements in the U.S. The 
three country agreement on NAICS envisions that each country may 
develop national detailed industries below the NAICS industry level, so 
long as the national detail can be aggregated to the NAICS 
classification, thus assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the NAICS 
industry subsector covered in Part XIX of this notice. For cases where 
no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................   Miscellaneous Manufacturing:                                                              
XXX................      Medical Equipment and                                                                  
                        Supply Manufacturing:                                                                   
XXXX...............       Medical Equipment and                                                                 
                         Supply Manufacturing:                                                                  
XXXXX..............       Laboratory Apparatus and  E                    3821  Laboratory Apparatus and         
                          Furniture Manufacturing.                              Furniture.                      
XXXXX..............       Surgical and Medical      E                    3841  Surgical and Medical Instruments 
                          Instrument Manufacturing.                             and Apparatus.                  
XXXXX..............       Surgical Appliance and    R                   *2599  Furniture and Fixtures, NEC      
                          Supply Manufacturing.                                 (hospital beds).                
                                                    ................    *3829  Measuring and Controlling        
                                                                                Devices, NEC (medical           
                                                                                thermometers).                  
                                                    ................    *3842  Orthopedic, Prosthetic, and      
                                                                                Surgical Appliances and Supplies
                                                                                (except electronic hearing      
                                                                                aids).                          
XXXXX..............       Dental Equipment and      E                    3843  Dental Equipment and Supplies.   
                          Supply Manufacturing.                                                                 
XXXXX..............       Ophthalmic Good           E                    3851  Ophthalmic Goods.                
                          Manufacturing.                                                                        
XXXXX..............       Dental Laboratories.....  E                    8072  Dental Laboratories.             
XXXXX..............       Eyeglass and Contact      E                   *5995  Optical Goods Stores (grinding of
                          Lens Manufacturing.                                   lenses to prescription).        
XXX................      Cotton Ginning:                                                                        
XXXX...............      Cotton Ginning...........  E                    0724  Cotton Ginning.                  
XXX................      Other Miscellaneous                                                                    
                        Manufacturing:                                                                          
XXXX...............       Jewelry and Silverware                                                                
                         Manufacturing:                                                                         
XXXXX..............       Jewelry Manufacturing,    R                   *3469  Metal Stamping, NEC (stamping    
                          including Precious Metal.                             coins).                         
                                                    ................    *3479  Coating, Engraving, and Allied   
                                                                                Services, NEC (silver and plated
                                                                                ware engraving and etching).    
                                                    ................     3911  Jewelry, Precious Metal.         
XXXXX..............      Silverware and Plated      R                   *3479  Coating, Engraving, and Allied   
                          Ware Manufacturing.                                   Services, NEC (silver and plated
                                                                                ware engraving and etching).    
                                                    ................    *3914  Silverware, Plated Ware, and     
                                                                                Stainless Steel Ware (excludes  
                                                                                nonprecious metal cutlery and   
                                                                                flatware).                      
XXXXX..............       Jewelers' Material and    E                    3915  Jewelers' Findings and Materials,
                          Lapidary Work                                         and Lapidary Work.              
                          Manufacturing.                                                                        
XXXXX..............       Costume Jewelry and       R                   *3479  Coating, Engraving, and Allied   
                          Novelty Manufacturing.                                Services, NEC (costume jewelry  
                                                                                engraving and etching).         
                                                    ................    *3499  Fabricated Metal Products, NEC   
                                                                                (trophies of nonprecious        
                                                                                metals).                        
                                                    ................     3961  Costume Jewelry and Costume      
                                                                                Novelties, Except Precious      
                                                                                Metal.                          
XXXX...............      Sporting and Athletic      E                    3949  Sporting and Athletic Goods, NEC.
                         Good Manufacturing.                                                                    

[[Page 26662]]

                                                                                                                
XXXX...............       Doll, Toy, and Game                                                                   
                         Manufacturing:                                                                         
XXXXX..............       Doll and Stuffed Toy      E                    3942  Dolls and Stuffed Toys.          
                          Manufacturing.                                                                        
XXXXX..............       Game, Toy, and            R                   *3944  Games, Toys, and Children's      
                          Children's Vehicle                                    Vehicles, Except Dolls and      
                          Manufacturing.                                        Bicycles (except metal          
                                                                                tricycles).                     
XXXX...............       Office Supply , Except                                                                
                         Paper, Manufacturing:                                                                  
XXXXX..............       Pen and Mechanical        E                    3951  Pens, Mechanical Pencils, and    
                          Pencil Manufacturing.                                 Parts.                          
XXXXX..............       Lead Pencil and Art Good  R                   *2531  Public Building and Related      
                          Manufacturing.                                        Furniture (blackboards).        
                                                    ................    *3579  Office Machines, NEC (pencil     
                                                                                sharpeners, staplers and other  
                                                                                office equipment).              
                                                    ................    *3952  Lead Pencils, Crayons, and       
                                                                                Artists' Materials (except      
                                                                                drawing and india ink, and      
                                                                                drafting tables and boards).    
XXXXX..............       Marking Device            E                    3953  Marking Devices.                 
                          Manufacturing.                                                                        
XXXXX..............       Carbon Paper and Inked    E                    3955  Carbon Paper and Inked Ribbons.  
                          Ribbon Manufacturing.                                                                 
XXXX...............       All Other Miscellaneous                                                               
                         Manufacturing:                                                                         
XXXXX..............       Musical Instrument        E                    3931  Musical Instruments.             
                          Manufacturing.                                                                        
XXXXX..............       Fastener, Button,         E                    3965  Fasteners, Buttons, Needles, and 
                          Needle, and Pin                                       Pins.                           
                          Manufacturing.                                                                        
XXXXX..............       Broom, Brush, and Mop     R                    3991  Brooms and Brushes.              
                          Manufacturing.                                                                        
                                                    ................    *2392  Housefurnishings, Except Curtains
                                                                                and Draperies (mops, floor and  
                                                                                dust).                          
XXXXX..............  Burial Casket Manufacturing..  E                    3995  Burial Caskets.                  
XXXXX..............  All Other Miscellaneous        R                   *2499  Wood Products, NEC (wood and     
                      Manufacturing.                                            metal frames for mirrors and    
                                                                                pictures).                      
                                                    ................    *3999  Manufacturing Industries, NEC    
                                                                                (other miscellaneous products   
                                                                                not specially provided for      
                                                                                previously).                    
----------------------------------------------------------------------------------------------------------------
 The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and
  *means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                                



                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
0724....................................   Cotton Ginning.................  Cotton Ginning.                     
2392@...................................  Housefurnishings, Except                                              
                                           Curtains and Drapes:                                                 
                                            Blanket and Wardrobe Bags.....  Textile Bag Manufacturing (pt)      
                                                                             (Included in Textile Mills         
                                                                             subsector).                        
                                            Dusting Rags..................  Other Household Product Mills (pt)  
                                                                             (Included in Textile Mills         
                                                                             subsector).                        
                                            Mops, Floor and Dust..........  Broom, Brush and Mop Manufacturing  
                                                                             (pt).                              
                                            Other.........................  Other Household Textile Product     
                                                                             Mills (pt) (Included in Textile    
                                                                             Mills subsector).                  
2499....................................  Wood Products, NEC:                                                   
                                            Mirror and Picture Frames.....  All Other Miscellaneous             
                                                                             Manufacturing (pt).                
                                            Laundry Hampers Made from       Other Furniture Manufacturing (pt)  
                                             Rattan, Reed or Willow.         (Included in Furniture             
                                                                             Manufacturing subsector).          
                                            Wood Laundry Hampers..........  Household Wood Furniture            
                                                                             Manufacturing, Except Upholstered  
                                                                             (pt) (Included in Furniture        
                                                                             Manufacturing subsector).          
                                            Wood Tubs and Vats, Jewelry     Other Wood Container Manufacturing  
                                             and Cigar Boxes.                (pt) (Included in Wood Product     
                                                                             Manufacturing, except Furniture    
                                                                             subsector).                        
                                            Other Wood Products...........  Other Wood Product Manufacturing    
                                                                             (pt) (Included in Wood Product     
                                                                             Manufacturing, except Furniture    
                                                                             subsector).                        
2531@...................................  Public Building and Related                                           
                                           Furniture:                                                           
                                            Blackboards...................  All Other Miscellaneous             
                                                                             Manufacturing (pt).                
                                            Metal Public Building           Metal Office Furniture Manufacturing
                                             Furniture.                      (pt) (Included in Furniture        
                                                                             Manufacturing subsector).          
                                            Seats for Motor Vehicles......  Motor Vehicle Fabric Accessory and  
                                                                             Seat Manufacturing (pt) (Included  
                                                                             in Transportation Equipment        
                                                                             Manufacturing subsector).          
                                            Wood Public Building Furniture  Wood Office Furniture Manufacturing 
                                                                             (pt) (Included in Furniture        
                                                                             Manufacturing subsector).          
                                            Other Public Building           Other Furniture Manufacturing (pt)  
                                             Furniture.                      (Included in Furniture             
                                                                             Manufacturing subsector).          
2599@...................................  Furniture and Fixtures, NEC:                                          
                                            Furniture such as Ship          Other Metal Office Furniture        
                                             Furniture, Metal Industrial     Manufacturing (pt) (Included in    
                                             Work Benches and Stools.        Furniture Manufacturing subsector).
                                            Hospital Beds.................  Surgical Appliance and Supply       
                                                                             Manufacturing (pt).                
                                            Wood Industrial Work Benches    Wood Office Furniture Manufacturing 
                                             and Stools, and Other.          (pt) (Included in Furniture        
                                                                             Manufacturing subsector).          

[[Page 26663]]

                                                                                                                
                                            Other Furniture or Fixtures...  Other Furniture Manufacturing (pt)  
                                                                             (Included in Furniture             
                                                                             Manufacturing subsector).          
3469....................................  Metal Stamping, NEC:                                                  
                                            Stamping of Coins.............  Jewelry Manufacturing, including    
                                                                             Precious Metal (pt).               
                                            Metal Stamping, except Kitchen  Metal Stamping and Powder           
                                             Utensils, Pots and Pans for     Metallurgical Manufacturing (pt)   
                                             Cooking and Coins.              (Included in Fabricated Metal      
                                                                             Product Manufacturing subsector).  
                                            Kitchen Utensils and Pots and   Kitchen Utensil, Pot and Pan        
                                             Pans for Cooking.               Manufacturing (Included in         
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
3479....................................  Coating, Engraving, and Allied                                        
                                           Services, NEC:                                                       
                                            Jewelry Engraving and Etching,  Costume Jewelry and Novelty         
                                             Costume Jewelry.                Manufacturing (pt).                
                                            Jewelry Engraving and Etching,  Jewelry Manufacturing, Precious     
                                             Precious Metal.                 Metal (pt).                        
                                            Silverware and Flatware         Silverware and Plated Ware          
                                             Engraving and Etching.          Manufacturing (pt).                
                                            Other.........................  Metal Coating, Engraving, and Allied
                                                                             Services, Except Jewelry and       
                                                                             Silverware (Included in Fabricated 
                                                                             Metal Product Manufacturing        
                                                                             subsector).                        
3499@...................................  Fabricated Metal Products, NEC:                                       
                                            Metal Aerosol Valves..........  Other Valve and Pipe Fitting        
                                                                             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
                                            Metal Boxes...................  Metal Shipping Container, Barrel,   
                                                                             Drum, Keg, Pail, Bin, Box, etc.    
                                                                             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
                                            Metal Furniture Parts,          Household Metal Furniture           
                                             Household.                      Manufacturing (pt) (Included in    
                                                                             Furniture Manufacturing subsector).
                                            Metal Furniture Parts, Office.  Office Metal Furniture Manufacturing
                                                                             (pt) (Included in Furniture        
                                                                             Manufacturing subsector).          
                                            Powder Metallurgy.............  Metal Stampings and Powder          
                                                                             Metallurgy Manufacturing (pt)      
                                                                             (Included in Fabricated Metal      
                                                                             Product Manufacturing subsector).  
                                            Safe and Vault Locks..........  Hardware Manufacturing, Including   
                                                                             Locks (pt) (Included in Fabricated 
                                                                             Metal Product Manufacturing        
                                                                             subsector).                        
                                            Trophies of Nonprecious Metals  Costume Jewelry and Novelty         
                                                                             Manufacturing (pt).                
                                            Other Metal Products..........  All Other Fabricated Metal Product  
                                                                             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
3579@...................................  Office Machines, NEC:                                                 
                                            Pencil Sharpeners, Staplers     Lead Pencil and Art Good            
                                             and Other Office Equipment.     Manufacturing (pt).                
                                            Timeclocks and Time Stamps....  Watch, Clock, and Part Manufacturing
                                                                             (pt) (Included in Computer and     
                                                                             Electronic Product Manufacturing   
                                                                             subsector).                        
                                            Other Office Machines.........  Office Machine Manufacturing (pt)   
                                                                             (Included in Machinery             
                                                                             Manufacturing subsector).          
3821....................................  Laboratory Apparatus and          Laboratory Apparatus and Furniture  
                                           Furniture.                        Manufacturing.                     
3827....................................  Optical Instruments and Lenses..  Optical Instrument and Lens         
                                                                             Manufacturing (Included in         
                                                                             Machinery Manufacturing subsector).
3829....................................  Measuring and Controlling                                             
                                           Devices, NEC:                                                        
                                            Medical Thermometers..........  Surgical Appliance and Supply       
                                                                             Manufacturing (pt).                
                                            Other Measuring and             Other Measuring and Controlling     
                                             Controlling Devices.            Device Manufacturing (Included in  
                                                                             Computer and Electronic Product    
                                                                             Manufacturing subsector).          
3841....................................  Surgical and Medical Instruments  Surgical and Medical Instrument     
                                           and Apparatus.                    Manufacturing.                     
3842@...................................  Orthopedic, Prosthetic, and                                           
                                           Surgical Appliances and                                              
                                           Supplies:                                                            
                                            Orthopedic, Prosthetic, and     Surgical Appliance and Supply       
                                             Surgical Appliances and         Manufacturing (pt).                
                                             Supplies, except Electronic                                        
                                             Hearing Aids.                                                      
                                            Electronic Hearing Aids.......  Electromedical Equipment            
                                                                             Manufacturing (pt) (Included in    
                                                                             Computer and Electronic Product    
                                                                             Manufacturing).                    
3843....................................  Dental Equipment and Supplies...  Dental Equipment and Supply         
                                                                             Manufacturing.                     
3844....................................  X-Ray Apparatus and Tubes and     X-Ray Apparatus and Tube            
                                           Related Irradiation Apparatus.    Manufacturing (Included in Computer
                                                                             and Electronic Product             
                                                                             Manufacturing subsector).          
3845....................................  Electromedical and                Electromedical Equipment            
                                           Electrotherapeutic Apparatus.     Manufacturing (Included in Computer
                                                                             and Electronic Product             
                                                                             Manufacturing subsector).          
3851....................................  Ophthalmic Goods................  Ophthalmic Good Manufacturing.      
3911....................................  Jewelry, Precious Metal.........  Jewelry Manufacturing, except       
                                                                             Precious Metal (pt).               
3914....................................  Silverware, Plated Ware, and                                          
                                           Stainless Steel Ware:                                                
                                            Nonprecious Cutlery and         Cutlery and Flatware Manufacturing, 
                                             Flatware.                       Except Precious (pt) (Included in  
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          

[[Page 26664]]

                                                                                                                
                                            Silverware, Plated Ware, and    Silverware and Plated Ware          
                                             Stainless Steel Ware (Except    Manufacturing.                     
                                             Nonprecious Flatware and                                           
                                             Cutlery).                                                          
3915....................................  Jewelers' Findings and            Jewelers' Material and Lapidary Work
                                           Materials, and Lapidary Work.     Manufacturing.                     
3931....................................  Musical Instruments.............  Musical Instrument Manufacturing.   
3942....................................  Dolls and Stuffed Toys..........  Doll and Stuffed Toy Manufacturing. 
3944....................................  Games, Toys, and Children's                                           
                                           Vehicles, Except Dolls and                                           
                                           Bicycles:                                                            
                                            Tricycles and.................  Motorcycle, Bicycle, and Part       
                                                                             Manufacturing (pt) (Included in    
                                                                             Transportation Equipment           
                                                                             Manufacturing subsector).          
                                            Other.........................  Game, Toy, and Children's Vehicle   
                                                                             Manufacturing.                     
3949....................................  Sporting and Athletic Goods, NEC  Sporting and Athletic Good          
                                                                             Manufacturing.                     
3951....................................  Pens, Mechanical Pencils and      Pen and Mechanical Pencil           
                                           Parts.                            Manufacturing.                     
3952@...................................  Lead Pencils, Crayons, and                                            
                                           Artists' Materials:                                                  
                                            Drawing and India Ink.........  Printing Ink Manufacturing (pt)     
                                                                             (Included in Chemical Product      
                                                                             Manufacturing subsector).          
                                            Metal Drafting Tables and       Metal Office Furniture Manufacturing
                                             Boards.                         (pt) (Included in Furniture        
                                                                             Manufacturing subsector).          
                                            Wood Drafting Tables and        Wood Office Furniture Manufacturing 
                                             Boards.                         (pt) (Included in Furniture        
                                                                             Manufacturing subsector).          
                                            Other.........................  Lead Pencil and Art Good            
                                                                             Manufacturing (pt).                
3953....................................  Marking Devices.................  Marking Device Manufacturing.       
3955....................................  Carbon Paper and Inked Ribbons..  Carbon Paper and Inked Ribbon       
                                                                             Manufacturing.                     
3961....................................  Costume Jewelry and Costume       Costume Jewelry and Novelty         
                                           Novelties, Except Precious        Manufacturing (pt).                
                                           Metals.                                                              
3965....................................  Fasteners, Buttons, Needles, and  Fastener, Button, Needle and Pin    
                                           Pins.                             Manufacturing.                     
3991....................................  Brooms and Brushes..............  Broom, Brush and Mop Manufacturing. 
3993@...................................  Signs and Advertising                                                 
                                           Specialties:                                                         
                                            Flexographic Printing of        Commercial Flexographic Printing    
                                             Advertising Specialties.        (pt) (Included in Printing and     
                                                                             Related Support Activities         
                                                                             subsector).                        
                                            Gravure Printing of             Commercial Gravure Printing (pt)    
                                             Advertising Specialties.        (Included in Printing and Related  
                                                                             Support Activities subsector).     
                                            Lithographic Printing of        Commercial Lithographic Printing    
                                             Advertising Specialties.        (pt) (Included in Printing and     
                                                                             Related Support Activities         
                                                                             subsector).                        
                                            Screen Printing of Advertising  Commercial Screen Printing (pt)     
                                             Specialties.                    (Included in Printing and Related  
                                                                             Support Activities subsector).     
                                            Other Printing of Advertising   Other Commercial Printing (pt)      
                                             Specialties.                    (Included in Printing and Related  
                                                                             Support Activities subsector).     
                                            Electric Signs................  Electric Sign Manufacturing         
                                                                             (Included in Electrical Equipment, 
                                                                             Appliance and Component            
                                                                             Manufacturing subsector).          
                                            Metal Signs...................  All Other Fabricated Metal Product  
                                                                             Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
                                            Wood Signs....................  Other Wood Product Manufacturing    
                                                                             (pt) (Included in Wood Product     
                                                                             Manufacturing, except Furniture    
                                                                             subsector).                        
3995....................................  Burial Caskets..................  Burial Casket Manufacturing.        
3996....................................  Linoleum, Asphalted-Felt-Base,    Resilient Floor Coverings           
                                           and Other Hard Surface Floor      Manufacturing (pt) (Included in    
                                           Coverings, NEC.                   Rubber and Plastic Product         
                                                                             Manufacturing subsector).          
3999@...................................  Manufacturing Industries, NEC:                                        
                                            Beauty and Barber Chairs......  Metal Office Furniture Manufacturing
                                                                             (pt) (Included in Furniture        
                                                                             Manufacturing subsector).          
                                            Burnt Wood Articles...........  Other Wood Product Manufacturing    
                                                                             (pt) (Included in Wood Product     
                                                                             Manufacturing, except Furniture    
                                                                             subsector).                        
                                            Fur Bleaching, Currying,        Leather and Hide Tanning and        
                                             Scraping, Tanning and Dyeing.   Finishing Manufacturing (pt)       
                                                                             (Included in Leather and Allied    
                                                                             Product Manufacturing subsector).  
                                            Lamp Shades of Paper and        Other Lighting Equipment            
                                             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 as Combs,  All Other Fabricated Metal Product  
                                             Hair Curlers, etc.              Manufacturing (pt) (Included in    
                                                                             Fabricated Metal Product           
                                                                             Manufacturing subsector).          
                                            Plastics Products, such as      All Other Plastic Product           
                                             Combs, Hair Curlers, etc.       Manufacturing (pt) (Included in    
                                                                             Rubber and Plastic Product         
                                                                             Manufacturing subsector).          
                                            Flexographic Printing Eyeglass  Commercial Flexographic Printing    
                                             Frames for the Trade.           (pt) (Included in Printing and     
                                                                             Related Support Activities         
                                                                             subsector).                        
                                            Gravure Printing Eyeglass       Commercial Gravure Printing (pt)    
                                             Frames for the Trade.           (Included in Printing and Related  
                                                                             Support Activities subsector).     

[[Page 26665]]

                                                                                                                
                                            Lithographic Printing Eyeglass  Commercial Lithographic Printing    
                                             Frames for the Trade.           (pt) (Included in Printing and     
                                                                             Related Support Activities         
                                                                             subsector).                        
                                            Screen Printing Eyeglass        Commercial Screen Printing (pt)     
                                             Frames for the Trade.           (Included in Printing and Related  
                                                                             Support Activities subsector).     
                                            Other Printing Eyeglass Frames  Other Commercial Printing (pt)      
                                             for the Trade.                  (Included in Printing and Related  
                                                                             Support Activities subsector).     
                                            Tape Measures.................  Hand and Edge Tool Manufacturing    
                                                                             (pt) (Included in Fabricated Metal 
                                                                             Product Manufacturing subsector).  
                                            Other.........................  All Other Miscellaneous             
                                                                             Manufacturing (pt).                
5995....................................  Optical Goods Stores:                                                 
                                            Grinding of lenses to           Eyeglass and Contact Lens           
                                             prescription only.              Manufacturing.                     
                                            Other.........................  Optical Goods Stores (Included in   
                                                                             Retail sector).                    
8072....................................  Dental Laboratories.............  Dental Laboratories.                
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt.'' means ``part of'', means time series break has been created that is greater than 3% of 
  the 1992 value of shipments for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere         
  Classified.                                                                                                   



Description of Changes to the U.S. System

    Two complete industries were transferred out of 1987 Major Group 
39, Miscellaneous Manufacturing Industries.
    Signs and Advertising Specialties was transferred out as follows: 
printing advertising specialties were transferred into the 1997 
subsector Printing and Related Support Activities, in response to an 
industry proposal; electric signs were transferred into the 1997 
subsector, Electrical Equipment, Appliance and Component Manufacturing; 
metal signs were transferred into the 1997 subsector, Fabricated Metal 
Product Manufacturing; and wood signs were transferred into the 1997 
subsector Wood Product Manufacturing, except Furniture.
    Linoleum, Asphalted-Felt-Base, and Other Hard Surface Floor 
Coverings, NEC was transferred into the 1997 subsector Rubber and 
Plastic Product Manufacturing.
    Seven complete industries were transferred into the 1997 
Miscellaneous Manufacturing subsector.
    Cotton Ginning was transferred from 1987 SIC Industry Group 072, 
Crop Services, for international comparability. This is a nonexistent 
activity for Canada.
    The following five industries were transferred from the 
discontinued 1987 SIC Major Group 38, Measuring, Analyzing, and 
Controlling Instruments; Photographic, Medical and Optical Goods; 
Watches and Clocks:

Laboratory Apparatus and Furniture Manufacturing (1987 SIC 3821).
Surgical and Medical Instrument Manufacturing (1987 SIC 3841).
Surgical Appliance and Supply Manufacturing (1987 SIC 3842).
Dental Equipment and Supply Manufacturing (1987 SIC 3843).
Ophthalmic Good Manufacturing (1987 SIC 3851).

    Dental Laboratories were transferred from 1987 SIC Major Group 807, 
Medical and Dental Laboratories.
    Eyeglass and Contact Lens Manufacturing was transferred from part 
of 1987 SIC 5995, Optical Goods Stores.
    Fourteen activities were transferred out of 1987 Major Group 39, 
Miscellaneous Manufacturing and are described more fully in their new 
respective NAICS subsectors.
    Nonprecious cutlery and flatware were transferred from 1987 SIC 
3914, Silverware, Plated and Stainless Steel Ware, into Cutlery and 
Flatware Manufacturing in the 1997 subsector Fabricated Metal Product 
Manufacturing.
    Metal tricycles were transferred from 1987 SIC 3944, Games, Toys 
and Children's Vehicles, Except Dolls and Bicycles, into Motorcycle, 
Bicycle, and Part Manufacturing in 1997 subsector Transportation 
Equipment Manufacturing.
    Drawing and india ink were transferred from 1987 SIC 3952, Lead 
Pencils, Crayons, and Artists' Materials, into Printing Ink 
Manufacturing in the 1997 subsector Chemical Product Manufacturing.
    Drafting tables and boards were transferred from 1987 SIC 3952, 
Lead Pencils, Crayons and Boards, with metal going into Metal Office 
Furniture Manufacturing and wood going into Wood Office Furniture 
Manufacturing in the 1997 subsector Furniture Manufacturing.
    Beauty and barber chairs were transferred from 1987 SIC 3999, 
Manufacturing Industries, NEC, into Metal Office Furniture 
Manufacturing in the 1997 subsector Furniture Manufacturing.
    Burnt wood articles were transferred from 1987 SIC Code 3999, 
Manufacturing Industries, NEC, into Other Wood Product Manufacturing in 
the 1997 subsector Wood Product Manufacturing, Except Furniture.
    Fur bleaching, currying, scraping, tanning and dyeing were 
transferred from 1987 SIC 3999, Manufacturing Industries, NEC, into 
Allied and Hide Tanning and Finishing Manufacturing in the 1997 
subsector Leather and Allied Product Manufacturing.
    Lamp shades of paper and textile were transferred from 1987 SIC 
3999, Manufacturing Industries, NEC, into Other Lighting Equipment 
Manufacturing in the 1997 subsector Electrical Equipment, Appliance, 
and Component Manufacturing.
    Matches were transferred from 1987 SIC 3999, Manufacturing 
Industries, NEC, into Other Miscellaneous Chemical Manufacturing in the 
1997 subsector Chemical Product Manufacturing.
    Metal products such as combs, hair curlers, etc. were transferred 
from 1987 SIC 3999, Manufacturing Industries, NEC, into All Other 
Fabricated Metal Product Manufacturing in the 1997 subsector Fabricated 
Metal Product Manufacturing.
    Plastic products such as combs, hair curlers, etc. were transferred 
from 1987 SIC 3999, Manufacturing Industries, NEC, into All Other 
Plastic Product Manufacturing in the 1997 subsector Rubber and Plastic 
Product Manufacturing.
    Printing eyeglass frames for the trade was transferred from 1987 
SIC 3999, Manufacturing Industries, NEC, into the 1997 subsector 
Printing and Related Support Activities and was distributed by method 
of printing.
    Tape measures were transferred from 1987 SIC 3999, Manufacturing 
Industries, NEC, into Hand and Edge Tool Manufacturing in the 1997

[[Page 26666]]

subsector Fabricated Metal Product Manufacturing.
    Teaching machine and flight simulator manufacturing was transferred 
from 1987 SIC 3699, Electrical Machinery, Equipment, and Supplies, NEC, 
into Other Commercial and Service Industry Machinery Manufacturing in 
the 1997 subsector Machinery Manufacturing.
    There were nine activities that transferred into the 1997 subsector 
Miscellaneous Manufacturing.
    Mops, floor and dust, were transferred into Broom, Brush, and Mop 
Manufacturing from 1987 SIC 2392, Housefurnishings, Except Curtains and 
Draperies, for international comparability. The U.S. moved to match 
Canada and Mexico.
    Wood and metal frames for mirrors and pictures were transferred 
into All Other Miscellaneous Manufacturing from 1987 SIC 2499, Wood 
Products, NEC, to reflect similarities in production, and for three 
country comparability.
    Blackboards were transferred into Lead Pencil and Art Good 
Manufacturing from 1987 SIC 2531, Public Building and Related 
Furniture, to achieve international comparability. The U.S. and Canada 
moved to agree with Mexico.
    Hospital beds were transferred into Surgical Appliance and Supply 
Manufacturing from 1987 SIC 2599, Furniture and Fixtures, NEC, to 
reflect similarities in production and achieve international 
comparability.
    Stamping of coins was transferred into Jewelry Manufacturing, 
including Precious Metal from 1987 SIC 3469, Metal Stampings, NEC, for 
international comparability.
    Engraving and etching on precious jewelry, costume jewelry, and 
silverware and plated ware was transferred into Jewelry Manufacturing, 
including Precious Metal; Costume Jewelry and Novelty Manufacturing; 
and Silverware and Plated Ware Manufacturing, respectively, from 1987 
SIC 3479, Coating, Engraving, and Allied Services, NEC, for 
international comparability. The U.S. and Mexico moved to agree with 
Canada.
    Trophies of nonprecious metals were transferred into Costume 
Jewelry and Novelty Manufacturing from 1987 SIC 3499, Fabricated 
Metals, NEC, to achieve international comparability. The U.S. moved to 
agree with Canada and Mexico.
    Pencil sharpeners, staplers and other office equipment were 
transferred into Lead Pencil and Art Good Manufacturing from 1987 SIC 
3579, Office Machines, NEC, for international comparability. The U.S. 
and Canada moved to agree with Mexico.
    Medical thermometers were transferred into Surgical Appliance and 
Supply Manufacturing from 1987 SIC 3829, Measuring and Controlling 
Devices, NEC, to achieve international comparability. The U.S. and 
Canada moved to agree with Mexico.
    Also there were several activities that were transferred within the 
subsector for Miscellaneous Manufacturing. The number of miscellaneous 
industries increased from 18 in 1987 to 24 in 1997. For time series 
linkage, 14 of the 18 1987 industries are comparable within three 
percent of the 1997 industries.

Part XX--Proposed New Industry Structure for Postal Service and 
Couriers

Section A--NAICS Structure

North American Industry Classification System
(NAICS)
Agreement Number 31

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

Postal Service
Couriers

    The detailed NAICS structure along with a brief description of the 
structure is attached (Attachments 1 and 2). Each country agrees to 
release a copy of the proposed NAICS structure to interested data 
users. Comments received will be shared among the countries and 
additional discussions will be held before a final decision on the 
structure is made. Each country may add additional detailed industries, 
below the 4-digit level of NAICS, as necessary to meet national needs, 
so long as this additional detail aggregates to a 4-digit NAICS level 
in order to ensure full comparability among the three countries. This 
NAICS structure was presented and provisionally accepted at the NAICS 
Committee meeting held on November 8 and November 9, 1995 in 
Washington, D.C.

------------------------------------------------------------------------
              Accepted                       Signature            Date  
------------------------------------------------------------------------
Canada..............................  /S/ Jacob Ryten........    11/9/95
Mexico..............................  /S/ Enrique Ordaz......    11/9/95
United States.......................  /S/ Jack E. Triplett...    11/9/95
------------------------------------------------------------------------

Attachment 1--NAICS Structure

XX  Postal Service
XXX  Postal Service
XXXX  Postal Service
XX  Couriers
XXX  Couriers
XXXX  Couriers
XXX  Local Messengers and Local Delivery
XXXX  Local Messengers and Local Delivery

Attachment 2--North American Industry Classification System

    Draft Classification for:

Postal Services
Couriers

    Representatives of the statistical agencies of Canada, Mexico, and 
the United States agree to a draft industrial classification for these 
industries.
    The draft classification provides for the subsectors, Postal 
Services and Couriers. These subsectors are further subdivided into 
three industry groups, each with one industry. These subsectors will be 
part of the Transportation sector of the classification.

A General Outline

    The Postal Service and Couriers industries deliver letters and 
small packages. These articles can be described as those that can be 
handled by a single person without special equipment. This allows the 
collection, pick-up and delivery operations to be done with limited 
labor costs and minimal equipment. Sorting and transportation 
activities, where necessary, are increasingly mechanized. The 
restriction to small parcels distinguishes these establishments from 
those in the transportation industries.
    The Postal Service subsector includes the activities of the Post 
Office and its subcontractors in delivering letters and small parcels, 
normally without pick-up at the senders' location. This describes the 
traditional activity of national Postal Services.
    Establishments that perform these activities, such as the operation 
of rural Post Offices on contract to the Postal Service, are included 
in this subsector. This follows the industrial classification concept 
that ownership should not determine the industry of an establishment, 
but rather the activity undertaken. However, the delivery of bulk mail 
on contract to the Postal Service is not included here, because it is 
usually done by transportation establishments that carry other 
customers' goods as well.
    The Couriers subsector includes two types of activities. Couriers 
deliver parcels between cities. The parcels must be no larger or 
heavier than a single driver can handle without special equipment. The 
Couriers industry includes the establishments that perform intercity 
transportation as well as establishments that, under contract to them, 
do the local pick-up and delivery.

[[Page 26667]]

The intent is to include the complete hub-and-spoke network in the 
industry.
    Where the Postal Service undertakes a courier activity, and it can 
be delineated as one or more separate establishments, it is included in 
the Couriers industry. This reflects the rule concerning ownership 
referred to above. Canada expects to be able to delineate such 
establishments, but Mexico and the United States do not.
    The Local Messengers and Local Delivery industry undertakes 
deliveries of small parcels within a single urban area. There are two 
types of activity in practice. One is the delivery of letters and 
documents, usually of a legal nature, often by bicycle or on foot. The 
second is the delivery of small parcels, such as groceries or alcoholic 
beverages, usually by small truck or van.

Relationship to ISIC

    Each of the NAICS industries included in this subsector can be 
assigned to Division 64, Post and Telecommunications of the current 
International Standard Industrial Classification of all Economic 
Activities (ISIC, Revision 3) of the United Nations without any 
subdivision. The only difference is that ISIC includes separate courier 
establishments of the Postal Service in the National Post Activities 
class, whereas NAICS places them in the Couriers industry.

Some Changes to the National Classifications

    For Canada, these subsectors include activities from several 
industries in the current Transportation and Storage Industries 
division (part of the NAICS Couriers subsector) and from the 
Communication and Other Utilities Industries division (the Postal 
Service subsector and the rest of the Couriers subsector). The amount 
of detail of these NAICS subsectors is similar to that contained in the 
Canadian classification.
    For Mexico, the NAICS Postal Service and Couriers subsectors have 
the same coverage as the Mexican classification's Postal Services (CMAP 
720001) and Courier Services (CMAP 720002).
    For the United States, the activities included in these subsectors 
are currently in the Transportation and Public Utilities division, with 
the exception of contract postal services, currently in the Services 
Division (1987 SIC 7389, Business Services, Not Elsewhere Classified). 
The Couriers industry combines the truck couriers included in 1987 SIC 
4215, Courier Services, Except by Air, and air couriers included in 
1987 SIC 4513, Air Courier Services.

Achievement of Objectives

    The classification meets the objectives for the North American 
Industry Classification System (NAICS). It includes industries that 
group establishments with similar production processes, that is, it 
applies the production-oriented economic concept. The hierarchical 
structure of the classification also follows the production concept.
    The industries have high specialization ratios, and they are 
economically significant. Some are much larger than others, but this 
was necessitated to make them homogenous in terms of production 
process. The classification is still suitable for sampling, data-
publishing and other aspects of survey operations. Disruptions to time 
series are minimal. The statistical agencies can develop statistical 
``links'', to enable the re-tabulation of time series on the new NAICS 
classification structure.
    The classification achieves comparability for the three 
participating countries. All countries agree on the detailed 
definitions of the industries.

Section B--Annex: United States National Industry Detail

    As explained in the Structure presentation of this notice, for a 
number of reasons 4-digit industries in the two NAICS industry 
subsectors presented in Part XX, Section A--Attachment 1, contains less 
detail than is currently in the U.S. SIC system and less detail than is 
required to meet important analytical requirements in the U.S. The 
three country agreement on NAICS envisions that each country may 
develop national detailed industries below the NAICS industry level, so 
long as the national detail can be aggregated to the NAICS 
classification, thus assuring full North American comparability.
    The ECPC is proposing U.S. 5-digit industry detail for the two 
NAICS industry subsectors covered in Part XX of this notice. For cases 
where no 5-digit detail is shown, the ECPC is proposing that the NAICS 
4-digit industries will also represent the most detailed U.S. 
industries.

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
                                                                        1987                                    
                          1997 NAICS and U.S.          Status code      SIC           1987 SIC description      
                              description                               code                                    
----------------------------------------------------------------------------------------------------------------
XX.................  Postal Service:                                                                            
XXX................    Postal Service:                                                                          
XXXX...............     Postal Service:                                                                         
XXXXX..............      National Postal Service..  E                    4311  United States Postal Service.    
XXXXX..............      Contract Postal            N                   *7389  Business Services, Not Elsewhere 
                          Operations, Excluding                                 Classified (Postal Service      
                          Bulk Mail Transportation.                             contract operations).           
XX.................  Couriers:                                                                                  
XXX................    Couriers:                                                                                
XXXX...............     Couriers..................  R                   *4215  Courier Services, Except by Air  
                                                                                (hub and spoke intercity        
                                                                                delivery).                      
                                                                         4513  Air Courier Services.            
XXX................    Local Messengers and Local                                                               
                        Delivery:                                                                               
XXXX...............     Local Messengers and Local  N                   *4215  Courier Services, Except by Air  
                         Delivery.                                              (local delivery).               
----------------------------------------------------------------------------------------------------------------
The definitions of status codes are as follows: E--existing industry; N--new industry; R--revised industry; and 
  * means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.                               


                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
              1987 SIC code                     1987 SIC description                1997 U.S. description       
----------------------------------------------------------------------------------------------------------------
4215@...................................  Couriers Services Except by Air:                                      

[[Page 26668]]

                                                                                                                
                                            Hub and Spoke Intercity         Couriers (pt).                      
                                             Delivery.                                                          
                                            Local Delivery................  Local Messengers and Local Delivery.
4311....................................  United States Postal Service....  National Postal Service.            
4513@...................................  Air Courier Services............  Couriers (pt).                      
7389....................................  Business Services, Not Elsewhere                                      
                                           Classified:                                                          
                                            Post Office Contract Stations.  Contract Postal Operations,         
                                                                             Excluding Bulk Mail Transportation 
----------------------------------------------------------------------------------------------------------------
The abbreviation ``pt'' means ``part of'', @ means time series break has been created that is greater than 3% of
  the 1992 revenues for the 1987 industry. The abbreviation NEC is used for Not Elsewhere Classified.           



Description of Changes to the U.S. System

    There are two new industries, one in each of the proposed 
subsectors. The Contract Postal Operations, Excluding Bulk Mail 
Transportation industry was created to reflect operations similar to 
the Postal Service in process but which provide for fewer of the 
production equipment and facilities. This activity is included in 1987 
SIC 7389, Business Services, Not Elsewhere Classified.
    The Local Messengers and Local Delivery industry located in the 
Couriers subsector identifies establishments involved in local pick up 
and delivery and is created from part of 1987 SIC 4215, Courier 
Services, Except by Air. These establishments are identified separately 
from the Couriers industry based on production differences involving 
equipment and the method of delivery. This industry includes 
establishments that pick up and deliver by foot, bicycle, car and small 
van. The Couriers industry, created from part of 1987 SIC 4215, Courier 
Services, Except by Air, and part of 1987 SIC 4513, Air Courier 
Services, includes establishments that are part of a hub and spoke 
network by truck and air delivery.
Sally Katzen,
Administrator, Office of Information and Regulatory Affairs.
[FR Doc. 96-13039 Filed 5-24-96; 8:45 am]
BILLING CODE 3110-01-P