Economic Classification Policy Committee: Standard Industrial Classification ReplacementThe North American Industry Classification System Proposed Industry Classification Structure

Federal RegisterJul 26, 1995

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SUMMARY: Under Title 44 U.S.C. 3504, the Office of Management and

Budget (OMB) is seeking public comment on a series of notices

documenting the development of the new North American Industry

Classification System (NAICS), the industry classification system being

proposed to replace the current Standard Industrial Classification

(SIC) system.

This notice, the third related to preparation of NAICS and the

first in a series seeking comment on proposed industry revisions,

presents the proposed NAICS structures for petroleum and coal products

manufacturing, chemical manufacturing, and rubber and plastics

manufacturing; broadcasting and telecommunications; and foodservices

and drinking places and accommodations.

OMB is seeking comments on the usefulness and advisability of the

proposed new NAICS subsectors submitted by the Economic Classification

Policy Committee (ECPC), an interagency committee established by OMB.

Subsequent Federal Register notices will seek comment on other

industry sector and subsector proposals. OMB is publishing the proposed

new industry structure as soon as the drafting is completed, to provide

as much information as quickly as possible and to ensure extensive

public participation in the process. A final Federal Register notice,

to be published in the fall of 1995, will include the entire NAICS

structure for public comment.

NAICS is being developed in cooperation with Statistics Canada and

Mexico's Instituto Nacional de Estadistica, Geografia e Informatica

(INEGI). The new NAICS system provides common industry definitions for

Canada, Mexico, and the United States to facilitate economic analyses

that cover the economies of the three North American countries. The

three country collaboration on an industry classification system for

North America was announced for public comment in the Federal Register,

July 26, 1994, pp. 38092-38096.

The July 26, 1994, Federal Register notice includes the concepts

for the new system, as developed by Statistics Canada, Mexico's INEGI,

and the ECPC. It also includes a copy of the joint statement of the

three countries' statistical agencies regarding the development of

NAICS. That agreement includes the following principles:

(1) NAICS will be erected on a production-oriented, or supply-

based, conceptual framework. This means that producing units that use

identical or similar production processes will be grouped together in

NAICS.

(2) The system will give special attention to developing

production-oriented classifications for (a) new and emerging

industries, (b) service industries in general, and (c) industries

engaged in the production of advanced technologies.

(3) Time series continuity will be maintained to the extent

possible. However, changes in the economy and proposals from data users

must be considered. In addition, adjustments will be required for

sectors where the United States, Canada, and Mexico presently have

incompatible industry classification definitions in order to produce a

common industry system for all three North American countries.

(4) The system will strive for compatibility with the 2-digit level

of the International Standard Industrial Classification of All Economic

Activities (ISIC, Rev. 3) of the United Nations.

ECPC Report No. 3--Summary of Public Responses to the Proposed New

North American Industry Classification Industry System provides a

summary of public comments received in response to the July 26, 1994,

Federal Register notice.

DATES: To ensure consideration and response to all comments on the

proposals set forth in this notice, comments must be in writing and

should be submitted as soon as possible, but no later than September

18, 1995. The proposed industry system would become effective in the

U.S. on January 1, 1997.

ADDRESSES: Correspondence about the industry proposals of the NAICS

structure announced in this Federal Register notice should be sent to:

Carole A. Ambler, Coordinator, Economic Classification Policy

Committee, Bureau of the Census, U.S. Department of Commerce, Room

2633-3, Washington, DC 20233, telephone number: (301) 457-2668, FAX

number: (301) 457-1343.

Copies of all ECPC issues papers and ECPC reports are available by

contacting Jack E. Triplett, Chairman, Economic Classification Policy

Committee, Bureau of Economic Analysis (BE-42), U.S. Department of

Commerce, Washington, DC 20230, telephone number: (202) 606-9615, FAX

number: (202) 606-5311.

ELECTRONIC AVAILABILITY AND COMMENTS: This document is available on the

Internet from the Census Bureau via WWW browser, ftp, and email.

To obtain this document via WWW browser, connect to ``http://

www.census.gov'' then select ``Economy,'' then select ``Economy-Wide

Programs,'' then select ``NAICS Documents.''

To obtain this document via ftp, login to ftp.census.gov as

anonymous, and retrieve the file ``prop01.txt'' from the ``/pub/epcd/

naics'' directory. (That directory also contains previous NAICS Federal

Register Notices and related documents.)

To obtain this document via Internet email, send a message to

[email protected] with the body text as follows: ``get gatekeeper

prop01.txt''. The document will be delivered as a message attachment.

Comments may be sent via Internet email to the Census Bureau at

[email protected] (do not include any capital letters in the address).

Comments received at this address by the date specified above will be

included as part of the official record.

FOR FURTHER INFORMATION CONTACT: Carole A. Ambler, Coordinator,

Economic Classification Policy Committee, Bureau of the Census, U.S.

Department of Commerce, Room 2633-3, Washington, DC 20233, telephone

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

SUPPLEMENTARY INFORMATION:

Structure of Notice:

There are three parts to this notice. PART 1 includes the proposals

for petroleum and coal products manufacturing, chemicals manufacturing,

and rubber and plastics products manufacturing; PART 2 includes

broadcasting and telecommunications; and PART 3, includes foodservices

and drinking places and accommodations.

[[Page 38437]]

Each of the three parts of the notice is organized into two

sections. The first section includes a copy of the proposed agreement

signed by the ECPC, Statistics Canada, and INEGI; the structure of

NAICS; and an explanation of the structure. For a number of reasons,

NAICS industries do not always provide as much industry detail as has

been present in the U.S. SIC. This will allow each country to add

additional detailed industries, below the 4-digit level of NAICS, as

necessary to meet national needs, so long as this additional detail

aggregates to a 4-digit NAICS level in order to ensure full

comparability among the three countries. The second section of the

notice includes the U.S. detailed industries within NAICS and two

comparison tables showing the differences between the 1987 SIC and the

1997 NAICS with United States detail.

NAICS is organized in a hierarchical structure much like the

existing SIC. The first digit of a NAICS code designates the sector.

The code also designates 2-digit subsectors, 3-digit industry groups,

and 4-digit industries. Each country may add additional detailed

industries, below the 4-digit level of NAICS, as necessary to meet

national needs, so long as this additional detail aggregates to a 4-

digit NAICS level in order to ensure full comparability among the three

countries. The proposed United States NAICS system, for example, would

include 5-digit industries. These represent important industries in the

U.S. that cannot be recognized in the statistical systems of either

Canada or Mexico because of size restrictions, confidentiality, or

other reasons.

The NAICS numbering system is still under development; therefore

the hierarchical structure is displayed in this document with X's

representing the following:

X Industry Sector (not highlighted in structure).

XX Industry Subsector.

XXX Industry Group.

XXXX Industry.

XXXXX U.S. National Industry.

The terms ``Industry Sector'' and ``Industry Subsector'' are changes

from the terms ``Division'' and ``Major Group'' used in the 1987 SIC

manual.

Time Series Summary

The standard approach to preserving time series continuity after

classification revisions is to create linkages where the series break.

This is accomplished by producing the data series using both the old

and new classifications for a given period of transition. With the dual

classifications of data, the full impact of the revision can be

assessed. Data producers then may measure the reallocation of the data

at aggregate industry levels and develop a concordance between the new

and old series for that given point in time. The concordance creates a

crosswalk between the old and new classification systems. This link

between the 1987 U.S. SIC and NAICS (with U.S. national detail) will be

developed by the statistical agencies in the U.S.

Outreach Activities

OMB and the Economic Classification Policy Committee (ECPC) are

seeking comments on the proposed NAICS structure for the industries

described in this notice.

In carrying out its mandate to ensure maximum public participation

in the process of constructing NAICS, the ECPC has already discussed

many of these industry proposals with industry and user groups and will

continue to do so. In addition, the ECPC is replying on a flow basis as

soon as the work is completed for industry subsectors to organizations

that responded to previous Federal Register notices. Thus, this Federal

Register notice supplements other ECPC public outreach activities in

the development of NAICS.

Part I--Proposed New Industry Structure for Petroleum and Coal Products

Manufacturing, Chemicals Manufacturing, and Rubber and Plastics

Products Manufacturing

Section A--NAICS Structure

North American Industry Classification System

(NAICS)

Agreement Number 1

This Document represents the proposed agreement on the structure of

the North American Industry Classification System (NAICS) for the

following industries:

Petroleum and Coal Products Manufacturing

Chemicals Manufacturing

Rubber and Plastics Products Manufacturing

The detailed NAICS structure along with a brief description of the

structure is attached (Attachments 1 and 2). Each country agrees to

release a copy of the proposed NAICS structure to interested data

users. Comments received will be shared among the countries and

discussions held before a final decision on the structure is made. Each

country may add additional detailed industries, below the 4-digit level

of NAICS, as necessary to meet national needs, so long as this

additional detail aggregates to a 4-digit NAICS level in order to

ensure full comparability among the three countries. This NAICS

structure was presented and provisionally accepted at the NAICS

Committee meeting held on May 18 and 19 in Ottawa, Canada.

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

Accepted Signature Date

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

Canada........................ /S/ Jacob Ryten.............. 5/19/95

Mexico........................ /S/ Enrique Ordaz............ 5/19/95

United States................. /S/ Jack E. Triplett......... 5/19/95

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

Attachment 1.--NAICS Structure

XX Petroleum and Coal Products Manufacturing

XXX Petroleum and Coal Products Manufacturing.

XXXX Petroleum Refineries.

XXXX Asphalt Paving and Roofing and Saturated Materials

Manufacturing.

XXXX Other Petroleum and Coal Products Manufacturing.

XX Chemicals Manufacturing

XXX Basic Chemicals Manufacturing.

XXXX Petrochemicals Manufacturing.

XXXX Industrial Gases Manufacturing.

XXXX Dyes and Pigments Manufacturing.

XXXX Other Inorganic Chemicals Manufacturing.

XXXX Other Organic Chemicals Manufacturing.

XXX Resins, Synthetic Rubber, Artificial and Synthetic

Fibers and Filament Manufacturing.

XXXX Resins and Synthetic Rubber Manufacturing.

XXXX Artificial and Synthetic Fibers and Filament

Manufacturing.

XXX Pesticides, Fertilizers, and Other Agricultural

Chemicals Manufacturing.

XXXX Fertilizers Manufacturing.

XXXX Pesticides and Other Agricultural Chemicals

Manufacturing.

XXX Pharmaceuticals and Medicine Manufacturing.

XXX Pharmaceuticals and Medicine Manufacturing.

XXX Paints, Coatings, Adhesives, and Sealants

Manufacturing.

XXXX Paints and Coatings Manufacturing.

XXXX Adhesives and Sealants Manufacturing.

[[Page 38438]]

XXX Soaps, Cleaning Compounds, and Toilet Preparations

Manufacturing.

XXXX Soaps and Cleaning Compounds Manufacturing.

XXXX Toilet Preparations Manufacturing.

XXX Miscellaneous Chemical Products Manufacturing.

XXXX Printing Ink Manufacturing.

XXXX Explosives Manufacturing.

XXXX Other Miscellaneous Chemical Products

Manufacturing.

XX Rubber and Plastics Products Manufacturing.

XXX Rubber Products Manufacturing.

XXXX Tires and Tubes Manufacturing.

XXXX Rubber and Plastics Hose and Belting

Manufacturing.

XXXX Other Rubber Products Manufacturing.

XXX Plastics Products Manufacturing.

XXXX Unsupported Plastics Films, Sheets and Bags

Manufacturing.

XXXX Unsupported Profile Shapes, Plastics Pipes, and

Fittings Manufacturing.

XXXX Laminated Plastics Plates, Sheets, and Shapes

Manufacturing.

XXXX Polystyrene Foam Products Manufacturing.

XXXX Urethane Foam Products Manufacturing.

XXXX Plastics Bottles Manufacturing.

XXXX Other Plastics Products Manufacturing.

Attachment 2--North American Industry Classification System

Draft Classification for:

Petroleum and Coal Products Manufacturing

Chemicals Manufacturing

Rubber and Plastics Products Manufacturing

Representatives of the statistical agencies of Canada, Mexico and

the United States have agreed to a draft industry classification for

these industries.

The draft classification provides for three industry subsectors,

Petroleum and Coal Products Manufacturing; Chemicals Manufacturing; and

Rubber and Plastics Products Manufacturing. These are further

subdivided into ten industry groups and thirty industries. These

industry subsectors will be part of the Manufacturing sector(s) of the

NAICS classification.

Achievement of Objectives

The classification meets the objectives for the North American

Industry Classification System. It is comprised of industries that

group establishments with similar production processes, that is, it

applies the production-oriented economic concept. In the main, the

hierarchical structure of the classification also follows the

production concept.

The classification achieves comparability for the three

participating countries. Based on existing data, all three countries

expect to be able to publish data regularly at the industry level of

the structure. All countries agree on the detailed definitions of the

industries.

The classification improves comparability with other countries.

With the exception of the ``miscellaneous'' industries, all industries

are compatible with the 2-digit level of the current International

Standard Industrial Classification of All Economic Activities (ISIC,

Revision 3) of the United Nations. This means that each NAICS industry

is the same as, or part of, a single ISIC 2-digit Division. Therefore,

data tabulated using NAICS can be readily re-tabulated according to

ISIC. This comparability extends to higher levels of the NAICS. For

example, there is little difference between the NAICS Chemical

Industries, and ISIC 24, Manufacture of Chemicals and Chemical

Products.

Objectives of the NAICS project other than comparability are not so

relevant in the classification of these subsectors as in others. These

objectives are the delineation of new and emerging industries, service

industries and industries engaged in the production of advanced

technologies. These manufacturing industry subsectors are relatively

mature, generally produce goods, and have always employed relatively

advanced technology. Therefore the emphasis in developing this area has

been on the production concept and comparability.

The industries have high specialization ratios, and they are

economically significant. The detail and structure of the

classification are balanced in size. This enhances the classification's

suitability for sampling, data-publishing and other aspects of survey

operations. Finally, disruptions to time series at the NAICS industry

level have been kept to a minimum. Most of the changes at the detail to

existing classifications are marginal. The major changes are well-

identified and can be taken into account in linking time series.

Limitations of the Classification

On the other hand, there are some analytical requirements that

cannot be met by the proposed industry classification. In particular,

there is a demand for data on the production of all articles of

plastic. This cannot be accommodated by the proposed industry

classification due to the ubiquity of plastics in manufactured

products. Many industrial activities that incorporate plastics in

combination with other materials are classified elsewhere in

manufacturing.

Similarly, a breakdown of plastics industries that follows market

lines cannot be produced. This arises from the fact that, in general,

plastics fabricators can and do switch production from one type of

product to another as market conditions change. In some cases a market

or demand category does correspond to a distinct production process, in

which case an industry can be defined that supports the needs of both

supply-oriented and demand-oriented analyses. An example of this is the

NAICS Plastics Bottles Manufacturing industry. However, in general,

this is not possible because of the way businesses have organized their

production facilities.

Users requiring data for demand analysis can instead make use of

statistics based on commodity classifications. Each country publishes

such data. Efforts are underway to harmonize the commodity

classifications to allow comparability of these statistics.

Constraints on the NAICS Classification

A few factors constrained the structure and detail of the

classification in the area under consideration.

An issue related to the coding structure is the ability to publish

and the economic significance of the items defined in the

classification. In the chemicals industry, most activities that were

identified in one country exist in the others. However, often an

activity is not economically significant to the same degree in all

countries. Further, data for some significant activities cannot be

published for a particular country for reasons of confidentiality, such

as the matches manufacturing industry in Canada. Finally, the way

activities are combined in establishments differs to some extent in the

different countries. A structure could have been developed that

specified such activities in NAICS, but the resulting statistical

tables for any given country would have numerous insignificant or

suppressed entries. It was preferable to adopt an operating rule that

the NAICS industries for this

[[Page 38439]]

area must be economically significant and publishable. It is

anticipated that each country will publish additional categories that

comprise sub-divisions of NAICS industries, to present data for

activities that are significant nationally.

Other constraints did involve the nature of the industries to be

classified. In the case of chemicals, it was essential for NAICS to

include Petrochemicals Manufacturing as an industry, due to the

significance of this activity in Mexico. This is a major change for the

United States and Canada. It involves some extra work for these

countries in implementing the classification, since the direct

assignment of industry codes from commodity output information (a

common technique for most manufacturing industries) cannot be used

without modification. Nevertheless, the importance of the activity, and

the fact that it is based on a well-defined production process,

resulted in its inclusion in NAICS.

A General Outline

The Petroleum and Coal Products Manufacturing subsector is based on

the transformation of crude petroleum and coal into usable products.

The dominant process is petroleum refining, which involves the

separation of crude petroleum into component products through such

techniques as cracking and distillation.

The Chemicals Manufacturing subsector is based on the

transformation of organic and inorganic raw materials by a chemical

process, and the formulation of products. This subsector distinguishes

the production of basic chemicals, which comprises the first industry

group, from the production of intermediate and end products produced by

further processing of basic chemicals, which make up the remaining

industry groups.

Concerning Basic Chemicals Manufacturing industries, data users

will note that a general distinction has not been made between organic

and inorganic basic chemicals. The production of organic and inorganic

industrial gases is a single activity. In Mexico, the production of

organic and inorganic dyes and pigments commonly takes place in the

same establishments.

The industry subsector Rubber and Plastics Products Manufacturing

includes establishments that make goods by processing raw rubber and

plastics materials. To the extent possible, this subsector is

restricted to industrial activities whose core technology is the

production of products made of just one material, rubber or plastic.

Many manufacturing activities use rubber or plastic as one of several

inputs, to the extent that the core technology relates to the type of

product produced. An example of this is the manufacture of footwear.

Typically, more than one material is used to produce shoes, so

technologies that allow disparate materials to be formed and combined

are of central importance in describing the footwear manufacturing

activity. Such activities, for example footwear and furniture

manufacture, are generally classified elsewhere than in the industry

subsectors organized around the core technologies of rubber and

plastic.

The main exception to this principle is Tires and Tubes

Manufacturing. The production of tires is included in Rubber Products

Manufacturing to minimize the disruption of time series and for

comparability with ISIC, rather than because it particularly fits the

general production process of the major group subsector. Tires are

normally made from several materials.

A distinction is made between rubber and plastics products at the

industry group level. It is not a rigid distinction, as can be seen

from the definition of Rubber and Plastics Hose and Belting

Manufacturing. As materials technology improves, plastics are

increasingly being used as a substitute for rubber. Eventually, the

distinction may disappear as a basis for defining establishments, and

be limited to the commodity classification.

The Plastics Products Manufacturing industry subsector consists

generally of activities involving the processing of plastics materials

in forms such as pellets into intermediate or final products, using

such processes as extrusion and injection moulding. Within most of

these industries, the production process is such that a wide variety of

products can be produced.

Some Changes to the National Classifications

This section highlights some of the significant changes to existing

national classifications.

In Petroleum and Coal Products Manufacturing, the main change to an

existing classification is the inclusion of activities currently in

CSIC \1\ 2721, Asphalt Roofing Industry, in NAICS Asphalt Paving and

Roofing and Saturated Materials Manufacturing. It is included here

because the defining feature of the production process (the saturation

of paper with asphalt) is the manipulation of asphalt.

\1\ CSIC refers to the Standard Industrial Classification of

Canada, 1980 Revision. USIC refers to the Standard Industrial

Classification of the United States, 1987 Revision. CMAP refers to

the Classification of Activities and Products of Mexico.

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

The production of alumina from bauxite is currently classified in

USIC 2819, Industrial Inorganic Chemicals, NEC. The production of

alumina does involve the use of a chemical process, but it is analogous

to the chemical activities involved in the processing of other ores in

smelting and refining industries. It will therefore be treated as an

activity in the primary metals, rather than in NAICS Other Inorganic

Chemicals Manufacturing.

The production of artificial and synthetic fibers is treated as a

textile activity in CSIC. While the outputs are a basic raw material

for textile production, the fiber production itself is an activity with

chemical characteristics. It is basically a polymerization process,

similar to the production of synthetic resins. It is therefore included

in the NAICS Chemicals Manufacturing subsector (Artificial and

Synthetic Fibers and Filament Manufacturing).

The manufacture of photographic chemicals and sensitized paper is

classified in CSIC 3912, Other Instruments and Related Products

Industry and in USIC 3861, Photographic Equipment and Supplies. NAICS

classifies the production of these goods in Miscellaneous Chemical

Products Manufacturing, since their production process is a chemical

products process, not an equipment manufacturing process.

The new classification eliminates the 2-digit distinction between

rubber products and plastics products that was found in CSIC (groups 15

and 16). NAICS combines CSIC group 15, rubber products, and group 16,

plastics products, into one subsector, Rubber and Plastics Products

Manufacturing.

NAICS Tires and Tubes Manufacturing includes an activity--the

retreading and recapping of tires--which in CSIC and USIC is classified

as non-manufacturing. The tire retreading and recapping activity is

included in manufacturing because it involves more than just a repair.

This activity is an example of ``re-building'', which occurs when a

manufactured article is returned to usability using processes similar

to those used in the original manufacturing operation. Re-building

activities will be included in manufacturing in NAICS.

NAICS Rubber and Plastics Products Manufacturing excludes the

manufacture of footwear, furniture and toys of rubber and plastic. This

is a significant change to CMAP, which includes these activities in

CMAP 3550, Rubber Industry and 3560, Manufacture of Plastics Products.

[[Page 38440]]

NAICS Unsupported Plastics Films, Sheet and Bags Manufacturing

includes the manufacture of plastic laminates for packaging and plastic

bags, which are classified respectively in USIC 2671, Packaging Paper

and Plastics Film, Coated and Laminated and 2673, Plastics, Foil and

Coated Paper Bags.

NAICS Other Plastics Products Manufacturing includes the

manufacture of most of the plastics motor vehicle parts, such as

interior and exterior trim of plastics, which are classified in CSIC

3256, Plastics Parts and Accessories for Motor Vehicles.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, for a

number of reasons 4-digit industries in the three NAICS industry

subsectors presented in Part 1, Section A--Attachment 1, contain less

detail than is currently in the U.S. SIC system, and less detail than

is required to meet important analytical requirements in the U.S. The

three country agreement on NAICS envisions that each country may

develop national detailed industries below the NAICS industry level, so

long as the national detail can be aggregated to the NAICS

classification, thus assuring full North American comparability.

The ECPC is proposing U.S. 5-digit industry detail for the three

NAICS industry subsectors covered in Part I of this notice. In the

following tables, proposed 5-digit detail is indicated in italics. For

cases where no 5-digit detail is shown, the ECPC is proposing that the

NAICS 4-digit industries will also represent the most detailed U.S.

industries.

Table 1

The definitions of status codes are as follows: E-existing industry; N-new industry; R-revised industry; and *

means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

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

1987 USIC

1997 NAICS and U.S. description Status code code 1987 USIC description

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

XX Petroleum and Coal Products Manufacturing

XXX Petroleum and Coal Products Manufacturing

XXXX Petroleum Refineries...................... E 2911 Petroleum Refining.

XXXX Asphalt Paving and Roofing and Saturated

Materials Manufacturing

XXXXX Asphalt Paving Mixtures and Blocks E 2951 Asphalt Paving Mixtures

Manufacturing. and Blocks.

XXXXX Asphalt Felts and Coatings Manufacturing E 2952 Asphalt Felts and

Coatings.

XXXX Other Petroleum and Coal Products

Manufacturing

XXXXX Lubricating Oils and Greases E 2992 Lubricating Oils and

Manufacturing. Greases.

XXXXX All Other Petroleum and Coal Products R 2999 Petroleum and Coal

Manufacturing. Products, NEC.

*3312 Blast Furnaces and Steel

Mills (Coke Ovens).

XX Chemicals Manufacturing

XXX Basic Chemicals Manufacturing

XXXX Petrochemicals Manufacturing.............. N *2865 Cyclic Crudes and

Intermediates

(Aromatics).

*2869 Industrial Organic

Chemicals, NEC

(Aliphatics).

XXXX Industrial Gases Manufacturing............ R 2813 Industrial Gases.

*2869 Industrial Organic

Chemicals, NEC

(Fluorocarbon Gases).

XXXX Dyes and Pigments Manufacturing

XXXXX Inorganic Dyes and Pigments N *2816 Inorganic Pigments

Manufacturing. (Except Bone and Lamp

Black).

*2819 Industrial Inorganic

Chemicals, NEC

(Inorganic Dyes).

XXXXX Organic Dyes and Pigments Manufacturing. N *2865 Cyclic Crudes and

Intermediates (Organic

Dyes and Pigments).

XXXX Other Inorganic Chemicals Manufacturing

XXXXX Alkalies and Chlorine Manufacturing..... E 2812 Alkalies and Chlorine.

XXXXX Carbon Black Manufacturing.............. R *2816 Inorganic pigments (Bone

and Lamp Black).

2895 Carbon Black.

XXXXX All Other Inorganic Chemicals R *2819 Industrial Inorganic

Manufacturing. Chemicals, NEC (Except

Activated Carbon and

Charcoal, Alumina, and

Inorganic Industrial

Dyes).

*2869 Industrial Organic

Chemicals, NEC (Carbon

Bisulfide).

XXXX Other Organic Chemicals Manufacturing

XXXXX Gum and Wood Chemicals Manufacturing.... E 2861 Gum and Wood Chemicals.

XXXXX Cyclic Crudes and Intermediates R *2865 Cyclic Crudes and

Manufacturing. Intermediates (Except

Aromatics, Organic Dyes,

and Pigments).

[[Page 38441]]

XXXXX All Other Organic Chemicals R *2869 Industrial Organic

Manufacturing. Chemicals, NEC (Except

Aliphatics, Carbon

Bisulfide, Ethyl

Alcohol, Fatty Acid

Esters, and Fluorocarbon

Gases).

XXX Resins, Synthetic Rubber, Artificial and

Synthetic Fibers and Filament Manufacturing

XXXX Resins and Synthetic Rubber Manufacturing

XXXXX Plastics Materials and Resins E 2821 Plastics Materials and

Manufacturing. Resins.

XXXXX Synthetic Rubber Manufacturing.......... E 2822 Synthetic Rubber.

XXXX Artificial and Synthetic Fibers and

Filament Manufacturing

XXXXX Cellulosic Manmade Fibers Manufacturing. E 2823 Cellulosic Manmade

fibers.

XXXXX Noncellulosic Organic Fibers E 2824 Noncellulosic Organic

Manufacturing. Fibers.

XXX Pesticides, Fertilizers and Other

Agricultural Chemicals Manufacturing

XXXX Fertilizers Manufacturing

XXXXX Nitrogenous Fertilizers Manufacturing... E 2873 Nitrogenous Fertilizers.

XXXXX Phosphatic Fertilizers Manufacturing.... E 2874 Phosphatic Fertilizers.

XXXXX Fertilizers, Mixing Only Manufacturing.. E 2875 Fertilizers, Mixing Only.

XXXX Pesticides and Other Agricultural E 2879 Agricultural Chemicals,

Chemicals Manufacturing. NEC.

XXX Pharmaceuticals and Medicine Manufacturing

XXXX Pharmaceuticals and Medicine Manufacturing

XXXXX Medicinals and Botanicals Manufacturing. E 2833 Medicinals and

Botanicals.

XXXXX Pharmaceutical Preparations R 2834 Pharmaceutical

Manufacturing. Preparations.

*2835 Diagnostic Substances

(Except in-Vitro

Diagnostic).

XXXXX In-Vitro Diagnostic Substances N *2835 Diagnostic Substances (In-

Manufacturing. Vitro Diagnostic

Substances).

XXXXX Biological Products, Except Diagnostic E 2836 Biological Products.

Manufacturing.

XXX Paint, Coatings, Adhesives, and Sealants

Manufacturing

XXXX Paints and Coatings Manufacturing......... R 2851 Paints and Coatings.

*2899 Chemical Preparations,

NEC (Frit).

XXXX Adhesives and Sealants Manufacturing...... E 2891 Adhesives and Sealants.

XXX Soaps, Cleaning Compounds and Toilet

Preparations Manufacturing

XXXX Soaps and Cleaning Compounds Manufacturing

XXXXX Soaps and Other Detergents Manufacturing R 2841 Soaps and Other

Detergents.

*2844 Toilet Preparations

(Toothpaste).

XXXXX Polishes and Other Sanitation Goods E 2842 Polishes and Other

Manufacturing. Sanitation Goods.

XXXXX Surface Active Agents Manufacturing..... E 2843 Surface Active Agents.

XXXX Toilet Preparations Manufacturing......... R *2844 Toilet Preparations

(Except Toothpaste).

XXX Miscellaneous Chemical Products

Manufacturing

XXXX Printing Ink Manufacturing................ R 2893 Printing Inks.

*2899 Chemical Preparations,

NEC (Writing and

Stamping Inks).

*3952 Lead Pencils and Art

Goods (Drawing Inks and

India Ink).

XXXX Explosives Manufacturing.................. E 2892 Explosives.

XXXX Other Miscellaneous Chemical Products

Manufacturing

XXXXX Custom Compounding Purchased Resins E 3087 Custom Compounding

Manufacturing. Purchased Resins.

XXXXX Photographic Films, Papers, Plates and N *3861 Photographic Equipment

Chemicals Manufacturing. and Supplies

(Photographic Films,

Paper and Chemicals).

XXXXX All Other Miscellaneous Chemical R *2819 Chemical Preparations,

Products Manufacturing. NEC (Activated Carbon

and Charcoal).

*2869 Industrial Organic

Chemicals, NEC (Fatty

Acid Esters).

*2899 Chemical Preparations,

NEC (Except Frit and

Writing and Stamp Ink).

*3999 Manufacturing Industries,

NEC (Matches).

XX Rubber and Plastics Products Manufacturing

XXX Rubber Products Manufacturing

XXXX Tires and Tubes Manufacturing

[[Page 38442]]

XXXXX Tires and Inner Tubes Manufacturing..... E 3011 Tires and Inner Tubes.

XXXXX Tire Rebuilding and Repair.............. E 7534 Tire Rebuilding and

Repair.

XXXX Rubber and Plastics Hose and Belting E 3052 Rubber and Plastics Hose

Manufacturing. and Belting.

XXXX Other Rubber Products Manufacturing

XXXXX Mechanical Rubber Products Manufacturing E 3061 Mechanical Rubber

Products.

XXXXX All Other Rubber Products Manufacturing. R *3053 Gaskets, Packings and

Sealing Devices (Rubber

Gaskets, Packings and

Sealing Devices.

*3069 Fabricated Rubber

Products, NEC (Except

Rubberized Fabric and

Rubber Resilient Floor

Covering).

XXX Plastics Products Manufacturing

XXXX Unsupported Plastics Films, Sheets and

Bags Manufacturing

XXXXX Unsupported Plastics Bags Manufacturing. N *2673 Bags: Plastics,

Laminated, and Coated

(Plastics Bags).

XXXXX Unsupported Plastics Packaging Films and N *2671 Paper Coated and

Sheets Manufacturing. Laminated, NEC (Plastics

Packaging Film and

Sheet).

XXXXX Unsupported Plastics Films and Sheets, E 3081 Unsupported Plastics Film

Except Packaging Manufacturing. and Sheets, Except

Packaging.

*3073 Laminated Plastics Plate,

Sheet, and Profile

Shapes (Acrylic Sheets).

XXXX Unsupported Profile Shapes, Plastics

Pipes, and Fittings Manufacturing

XXXXX Unsupported Plastics Profile Shapes R 3082 Unsupported Plastics

Manufacturing. Profile Shapes.

*3089 Plastics Product, NEC

(Plastics Sausage

Casings).

XXXXX Plastics Pipes and Pipe Fittings R 3084 Plastics Pipes.

Manufacturing.

*3089 Plastics Products, NEC

(Plastics Pipe

Fittings).

XXXX Laminated Plastics Plates, Sheets, and E *3083 Laminated Plastics Plate,

Shapes Manufacturing. Sheet and Shapes (Except

Acrylic Sheets).

XXXX Polystyrene Foam Products Manufacturing... N *3086 Plastics Foam Products

(Polystyrene Foam

Products).

XXXX Urethane Foam Products Manufacturing...... N *3086 Plastics Foam Products

(Urethane Foam

Products).

XXXX Plastics Bottles Manufacturing............ E 3085 Plastics Bottles.

XXXX Other Plastics Products Manufacturing

XXXXX Plastics Plumbing Fixtures Manufacturing E 3088 Plastics Plumbing

Fixtures.

XXXXX Resilient Floor Coverings Manufacturing. R *3069 Fabricated Rubber

Products, NEC (Rubber

Resilient Floor

Coverings).

3996 Hard Surface Floor

Coverings, NEC.

XXXXX All Other Plastics Products R *3053 Gaskets, Packing and

Manufacturing. Sealing Devices

(Plastics Gaskets,

Packing Sealing

Devices).

*3089 Plastics Products, NEC

(Except Plastics Pipe

Fittings and Plastics

Sausage Casings).

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

Table 2

The abbreviation ``pt'' means ``part of''. @ means time series break has been created that is greater than 3% of

the 1992 value of shipments for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere

Classified.

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

1987 USIC code 1987 USIC description 1997 U.S. description

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

2812............................. Alkalies and Chlorine....... Alkalies and Chlorine Manufacturing.

2813............................. Industrial Gases............ Industrial Gases Manufacturing (pt).

2816............................. Inorganic Pigments..........

Inorganic Pigments, Except Inorganic Dyes and Pigments Manufacturing (pt).

Bone and Lamp Black.

[[Page 38443]]

Bone and Lamp Black....... Carbon Black Manufacturing (pt).

[email protected] Industrial Inorganic

Chemicals, NEC

Activated Carbon and Other Miscellaneous Chemical Preparations

Charcoal. Manufacturing (pt).

Alumina................... Primary Aluminum Manufacturing (pt).

Inorganic Dyes............ Inorganic Dyes and Pigments Manufacturing (pt).

Other..................... Other Miscellaneous Inorganic Chemicals

Manufacturing (pt).

2821............................. Plastics Materials and Plastics Materials and Resins Manufacturing.

Resins.

2822............................. Synthetic Rubber............ Synthetic Rubber Manufacturing.

2823............................. Cellulosic Manmade Fibers... Cellulosic Manmade Fibers Manufacturing.

2824............................. Noncellulosic Organic Fibers Noncellulosic Organic Fibers Manufacturing.

2833............................. Medicinals and Botanical.... Medicinals and Botanicals Manufacturing.

2834............................. Pharmaceutical Preparations. Pharmaceutical Preparations Manufacturing (pt).

[email protected] Diagnostic Substances

Diagnostic Substances, Pharmaceutical Preparations Manufacturing (pt).

Except In-Vitro Diagnostic.

In-Vitro Diagnostic In-Vitro Diagnostic Substances Manufacturing.

Substances.

2836............................. Biological Products, Except Biological Products, Except Diagnostic

Diagnostic. Manufacturing.

2841............................. Soaps and Other Detergents.. Soaps and Other Detergents Manufacturing (pt).

2842............................. Polishes and Other Polishes and Other Sanitation Goods

Sanitation Goods. Manufacturing.

2843............................. Surface Active Agents....... Surface Active Agents Manufacturing.

2844............................. Toilet Preparations

Toilet Preparations, Toilet Preparations Manufacturing.

Except Toothpaste.

Toothpaste................ Soap and Other Detergents Manufacturing (pt).

2851............................. Paints and Allied Products.. Paints and Coatings Manufacturing (pt).

2861............................. Gum and Wood Chemicals...... Gum and Wood Chemicals Manufacturing.

[email protected] Cyclic Crudes and

Intermediates

Aromatics................. Petrochemicals Manufacturing (pt).

Organic Dyes and Pigments. Organic Dyes and Pigments Manufacturing (pt).

Other..................... Cyclic Crudes and Intermediates Manufacturing.

[email protected] Industrial Organic

Chemicals, NEC

Aliphatics................ Petrochemicals Manufacturing (pt).

Carbon Bisulfide.......... All Other Inorganic Chemicals Manufacturing

(pt).

Ethyl Alcohol............. Distilled and Blended Liquors Manufacturing

(pt).

Fatty Acid Esters......... Other Miscellaneous Chemicals Preparations

Manufacturing (pt).

Fluorocarbon Gases........ Industrial Gases Manufacturing (pt).

Other..................... Other Miscellaneous Organic Chemicals

Manufacturing.

2873............................. Nitrogenous Fertilizers..... Nitrogenous Fertilizers Manufacturing.

2874............................. Phosphatic Fertilizers...... Phosphatic Fertilizers Manufacturing.

2875............................. Fertilizers, Mixing Only.... Fertilizers, Mixing Only Manufacturing.

2879............................. Agricultural Chemicals, NEC. Pesticides and Other Agricultural Chemicals

Manufacturing.

2891............................. Adhesives and Sealants...... Adhesives and Sealants Manufacturing.

2892............................. Explosives.................. Explosives Manufacturing.

2893............................. Printing Inks............... Printing Ink Manufacturing (pt).

2895............................. Carbon Black................ Carbon Black Manufacturing (pt).

2899............................. Chemical Preparations, NEC

Frit...................... Paints and Coatings Manufacturing (pt).

Writing and Drawing Inks.. Printing Ink Manufacturing (pt).

Other..................... Other Miscellaneous Chemical Preparations

Manufacturing (pt).

2911............................. Petroleum Refining.......... Petroleum Refineries.

2951............................. Asphalt Paving Mixtures and Asphalt Paving Mixtures and Blocks

Blocks. Manufacturing.

2952............................. Asphalt Felts and Coatings.. Asphalt Felts and Coatings Manufacturing.

2992............................. Lubricating Oils and Greases Lubricating Oils and Greases Manufacturing.

2999............................. Petroleum and Coal Products, All Other Petroleum and Coal Products

NEC. Manufacturing (pt).

3011............................. Tires and Inner Tubes....... Tires and Inner Tubes Manufacturing.

3021............................. Rubber and Plastics Footwear Rubber and Plastics Footwear Manufacturing.

3052............................. Rubber and Plastics Hose and Rubber and Plastics Hose and Belting

Belting. Manufacturing.

[email protected] Gaskets, Packings, and

Sealing Devices

Cork Gaskets, Packing, and Other Miscellaneous Wood Products Manufacturing

Sealing Devices. (pt).

Metal Gaskets, Packing, Other Miscellaneous Fabricated Metal Products

and Sealing Devices. Manufacturing (pt).

Plastics Gaskets, Packing, All Other Plastics Products Manufacturing (pt).

and Sealing Devices.

Rubber Gaskets, Packing, All Other Rubber Products Manufacturing (pt).

and Sealing Devices.

[[Page 38444]]

3061............................. Mechanical Rubber Products.. Mechanical Rubber Products Manufacturing.

3069............................. Fabricated Rubber Products,

NEC

Rubberized Fabric......... Coated Fabrics Including Rubberized Mills (pt).

Rubber Resilient Floor Resilient Floor Covering Manufacturing (pt).

Covering.

Other..................... All Other Rubber Products Manufacturing (pt).

3081............................. Unsupported Plastics Film Unsupported Plastics Films and Sheets, Except

and Sheets, Except Packaging Manufacturing (pt).

Packaging.

3082............................. Unsupported Plastics Profile Unsupported Plastics Profile Shapes

Shapes. Manufacturing (pt).

3083............................. Laminated Plastics Plate,

Sheet

Acrylic Sheets............ Unsupported Plastics Films and Sheets, Except

Packaging Manufacturing (pt).

Other..................... Laminated Plastics Plates, Sheets, and Shapes

Manufacturing.

[email protected] Plastics Pipes.............. Plastics Pipes and Pipe Fittings Manufacturing

(pt).

3085............................. Plastics Bottles............ Plastics Bottles Manufacturing.

3086............................. Plastics Foam Products

Urethane Foam Products.... Urethane Foam Products Manufacturing.

Polystyrene Foam Products. Polystyrene Foam Products Manufacturing.

3087............................. Custom Compounding of Custom Compounding of Purchased Resins

Purchased Resins. Manufacturing.

3088............................. Plastics Plumbing Fixtures.. Plastics Plumbing Fixtures Manufacturing.

3089............................. Plastics Products, NEC

Pipe Fittings............. Plastics Pipes and Pipe Fittings Manufacturing

(pt).

Plastics Sausage Casings.. Unsupported Plastics Profile Shapes

Manufacturing (pt).

Other..................... All Other Plastics Products Manufacturing (pt).

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

Description of Changes to the U.S. System

1. Petroleum and Coal Products Manufacturing--There was one change

from the 1987 industry structure for this sector.

Coke ovens, not operated with a blast furnace transferred from 1987

Industry Code 3312, Blast Furnaces and Steel Mills to the 1997 Other

Petroleum and Coal Products, NEC.

The number of 1997 petroleum and coal products industries remains

unchanged at five from 1987. For time series linkage, all five 1987

industries are comparable within three percent of the 1997 industries.

2. Chemicals Manufacturing--There were five new industries added to

the 1997 industry structure for this industry subsector. New industries

were created for:

Petrochemicals Manufacturing from parts of 1987 Industry Code 2865,

Cyclic Crudes and Intermediates and 1987 Industry Code 2869, Industrial

Organic Chemicals, NEC.

Organic Dyes and Pigments Manufacturing from part of old Industry

Code 2865, Cyclic Crudes and Intermediates.

In-Vitro Diagnostic Substances Manufacturing from part of old

Industry Code 2835, Diagnostic Substances.

Photographic Films, Papers, Plates, and Chemicals Manufacturing

from part of 1987 Industry Code 3861, Photographic Equipment and

Supplies.

Custom Compounding Purchased Resins Manufacturing transferred from

the 1987 Major Group Code 30, Rubber and Miscellaneous Plastics

Products.

Two activities transferred out of 1987 Major Group 28, Chemicals

and Allied Products.

Alumina transferred from 1987 Industry Code 2819, Industrial

Inorganic Chemicals, NEC into Primary Aluminum Manufacturing.

Ethyl Alcohol transferred from 1987 Industry Code 2869, Industrial

Organic Chemicals into Distilled and Blended Liquors Manufacturing.

Two activities transferred into the 1997 Chemicals Manufacturing.

Drawing ink and India ink transferred from old Industry Code 3952,

Lead Pencils and Art Goods into Printing Ink Manufacturing.

Matches transferred from old Industry Code 3999, Manufacturing

Industries, NEC into All Other Miscellaneous Chemical Preparations.

Also, there were several activities that transferred within the

chemical industry. The number of chemical industries increased from 29

in 1987 to 34 in 1997. For time series linkage, 25 of the 29 1987

industries are comparable within three percent of the 1997 industries.

3. Rubber and Plastics Products Manufacturing--There were six new

industries added to the 1997 industry structure for this industry

subsector.

Tire Rebuilding and Repair transferred from the 1987 Services Major

Group Code 75, Auto Repair, Services, and Parking.

Unsupported Plastics Packaging Films and Sheets Manufacturing from

part of 1987 Industry Code 2671, Paper Coated and Laminated, NEC.

Unsupported Plastics Bags from part of 1987 Industry Code 2673,

Bags: Plastics, Laminated, and Coated.

Polystyrene Foam Products from part of 1987 Industry Code 3086,

Plastics Foam Products.

Urethane Foam Products from part of 1987 Industry Code 3086,

Plastics Foam Products.

Resilient Floor Coverings from parts of 1987 Industry Code 3069,

Fabricated Rubber Products, NEC and 1987 Industry Code 3996, Hard

Surface Floor Coverings, NEC.

Three industries were removed from this industry group.

Rubber and Plastics Footwear transferred into the 1997 NAICS

Industry Subsector, Leather and Allied Products Manufacturing.

Gaskets, Packings, and Sealing Devices were deleted and the

products were split into various residual industries by material.

Custom Compounding Purchased Resins transferred into the 1997 NAICS

Industry subsector, Chemicals Manufacturing.

One activity transferred out of the 1987 Major Group, Rubber and

Plastics Products.

Rubberized Fabric transferred from the 1987 Industry Code 3069,

Fabricated

[[Page 38445]]

Rubber Products, NEC to 1997 NAICS Industry, Coated Fabric Mills

including Rubberized Fabric Mills.

Also, there were several activities that transferred within the

rubber and plastics products industries. The number of rubber and

plastics products industries increased from 15 in 1987 to 17 in 1997.

For time series linkage, 13 of the 15 1987 industries are comparable

within three percent of the 1997 industries.

Part II--Proposed New Industry Structure for Broadcasting and

Telecommunications

Section A--NAICS Structure and Narrative

North American Industry Classificattion System

(NAICS)

Agreement Number 2

This Document represents the proposed agreement on the structure of

the North American Industry Classification System (NAICS) for the

following industries:

Broadcasting and Telecommunications

The detailed NAICS structure along with a brief description of the

structure is attached (Attachments 1 and 2). Each country agrees to

release a copy of the proposed NAICS structure to interested data

users. Comments received will be shared among the countries and

discussions held before a final decision on the structure is made. Each

country may add additional detailed industries, below the 4-digit level

of NAICS, as necessary to meet national needs, so long as this

additional detail aggregates to a 4-digit NAICS level in order to

ensure full comparability among the three countries. This NAICS

structure was presented and provisionally accepted at the NAICS

Committee meeting held on May 18 and 19 in Ottawa, Canada.

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

Accepted Signature Date

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

Canada........................ /S/ Jacob Ryten.............. 5/19/95

Mexico........................ /S/ Enrique Ordaz............ 5/19/95

United States................. /S/ Jack E. Triplett......... 5/19/95

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

Attachment 1.--NAICS Structure

XX Broadcasting and Telecommunications

XXX Radio and Television Broadcasting.

XXXX Radio Broadcasting.

XXXX Television Broadcasting.

XXX Cable Networks and Program Distribution.

XXXX Cable Networks.

XXXX Cable and Program Distribution.

XXX Telecommunications.

XXXX Wired Telecommunications Carriers.

XXXX Wireless Telecommunications Carriers, Except

Satellite.

XXXX Telecommunications Resellers.

XXXX Satellite Telecommunications.

XXXX Other Telecommunications.

Attachment 2--North American Industry Classification System

Draft Classification for:

Broadcasting and Telecommunications

Representatives of the statistical agencies of Canada, Mexico and

the United States have agreed to a draft industry classification for

the Broadcasting and Telecommunications subsector. The draft

establishes three industry groups and nine industries. It has not yet

been determined in which industry sector in NAICS the Broadcasting and

Telecommunications industry subsector will be included.

Achievement of Objectives

The classification meets the objectives for the North American

Industry Classification System. It is comprised of industries that

group establishments with similar production processes, that is, it

applies the production-oriented economic concept. The hierarchical

structure also follows the production concept.

The classification achieves comparability for the three

participating countries. Based on existing data, all three countries

expect to be able to publish data regularly at the NAICS industry level

of the NAICS structure with the exception of satellite

telecommunications, which will be published only in the United States.

All countries agree on the detailed definitions of the classes.

The classification improves comparability with other countries.

With the exception of radio dispatch services and radio and television

relay systems, all industries are compatible with the 2-digit level of

the current International Standard Industrial Classification of All

Economic Activities (ISIC, Revision 3) of the United Nations. Radio

dispatch services and radio and television relay systems activities are

not significant.

Other objectives of the NAICS project have also been met. In an

effort to identify high technology and new and emerging industries, new

industries for cable networks, and satellite telecommunications have

been identified. A relatively new economic development has been

identified by creating an industry for telecommunications resellers.

In addition to the above objectives of the NAICS project, the

classification meets the objectives of an industry classification. The

classifications are homogeneous and account for most of the activities

that define them. In addition, they are economically significant.

Finally, disruptions to time series at the NAICS industry level have

been kept to a minimum. The major changes in country detail are well-

defined and can be taken into account in linking time series.

Limitations of the Classification

There are some limitations to the draft Broadcasting and

Telecommunications hierarchy. First, the proposed structure attempts to

describe the subsector as it currently exists. It is therefore rooted

in today's technology and regulatory environment and it reflects the

current profile of service providers. However, many are anticipating

fundamental changes in this sector. For instance, the distinction

between the Wired Telecommunication Carriers industry

[[Page 38446]]

and the Cable and Program Distribution industry may not be viable in

the future if both industries are engaged in the carriage of voice

(basic telephone service), data, and video (including television

programs). Similarly, the systems that are now used to distribute

television programs may well be used in the future to distribute other

types of products such as games and software or be used for other

purposes such as interactive home shopping or banking. In such an

environment, the provision of menus, interactive controls, and billing

services could become an integral part of the bundle of services

provided by carriers.

Secondly, it may be argued that for some purposes a number of

industries that are important users of telecommunications, as outlined

in the proposal, should be included in this subsector. These include

telephone answering services and other message services that may

include the use of paging and voice mail, phone booth operations, and

on-line information services. These industries have not been included

in this subsector as they are users of telecommunications services, not

providers of the telecommunications services as defined in the

proposal. They will be classified elsewhere in NAICS.

These few examples illustrate the difficulty of building a

classification for an evolving sector that will stand the test of time.

Constraints on the NAICS Classification

A number of industries that can appropriately be defined in terms

of production distinctions could not be published in all countries

because of considerations of size and confidentiality.

A General Outline

The Broadcasting and Telecommunications subsector has been defined

to include establishments providing point-to-point communications and

the services related to that activity. The industry groups (Radio and

Television Broadcasting, Cable Networks and Program Distribution, and

Telecommunications) are based on differences in the methods of

communication and in the nature of services provided.

The Radio and Television Broadcasting industry group operates

broadcasting studios and facilities for over the air or satellite

delivery of radio and television programs of entertainment, news, talk,

and the like. These establishments are often engaged in the production

and purchase of programs and generate revenues from the sale of air

time to advertisers, and from donations, subsidies, and/or the sale of

programs. The distinction between radio and television broadcasting

involves the use of equipment dealing in audio versus audio/video

signal.

The Cable Networks and Program Distribution industry group includes

two types of establishments. Cable networks operate studios and

facilities for the broadcasting of programs that are typically

narrowcast in nature (limited format such as news, sports, education,

and youth-oriented programming). The services of these establishments

are typically sold on a subscription or fee basis and the delivery of

the programs to customers is handled by other establishments that

operate cable systems, direct-to-home satellite systems, or other

similar systems. These distribution systems establishments are

classified to the Cable and Program Distribution industry.

The Telecommunications industry group is primarily engaged in

operating, maintaining, and/or providing access to facilities for the

transmission of voice, data, text, sound, and full motion picture video

between network termination points. A transmission facility may be

based on a single technology or a combination of technologies.

Wired Telecommunications Carriers operate and maintain switching

and transmission facilities (usually land lines and microwave) to

provide one-to-one communications via landlines (including microwave)

or a combination of landline and satellite communications.

Wireless Telecommunications Carriers, Except Satellite operate and

maintain switching and transmission facilities to provide one-to-one

communications via airwaves. The United States classification further

distinguishes wireless carriers on the basis of technology by

separating paging services and other wireless services such as cellular

and personal communications services.

Telecommunications Resellers provide services similar to those of

telecommunications carriers but do not operate and maintain a network.

They principally purchase the services of carriers for resale to

customers.

The Satellite Telecommunications industry principally provides

point-to-point communications services to other establishments in the

telecommunications and broadcasting industries by forwarding

communications signals via a system of satellites. The Other

Telecommunications industry includes establishments that specialize in

the provision of other types of services such as satellite tracking,

radar station operations, and overseas telecommunications (except for

satellite telecommunications).

Some Changes to the National Classifications

This section highlights some of the significant changes to the

existing national industry classification systems.

The only change to USIC 4832 Radio Broadcasting Stations is to add

detail to separate the radio networks from the radio stations. It was

felt that the programming function of the network was a significant

production difference. There is a significant change for Mexico in that

the draft proposes the elimination of the designation of private versus

public.

The change in the Television Broadcasting industry for the U.S. is

restricted to a title change to clarify the proper classification for

television networks. The issue of private versus public television is a

change for Mexico.

Cable Networks is similar to Radio Broadcasting, in that the

programming function is being used to identify these establishments as

a separate industry. This would be a new classification for all three

countries.

Cable and Program Distribution establishments are separated from

the cable networks based on the absence of the programming function.

This would be a new industry for all three countries.

The Wired Telecommunications Carriers industry group has been

changed to include the activities of USIC 4822 Telegraph and Other

Message Communications. Detail was also added for carriers and

resellers. USIC 4822 has been a declining industry and has assumed more

and more of the characteristics of the wired telecommunications

industry. This change also improved comparability with both Mexico and

Canada.

Recent changes in the telephone industry have paved the way for new

businesses. The most prevalent are the telecommunications resellers. A

reseller purchases communications services from the telecommunications

carrier and resells the services to its customers. The reseller does

not operate the communications network but instead may operate only the

switching system to connect customers to the carriers' network.

Telecommunication Carriers and Telecommunications Resellers are new

industries for all three countries. It is a new economic development

and, as such, is being identified as a new and emerging industry.

[[Page 38447]]

Changes in the Wireless Telecommunications Carriers, Except

Satellite industry involve moving radio dispatch from USIC 4899 and

adding detail to reflect different technologies and updating the

terminology. The production function of radio dispatch is similar to

that of wireless telecommunications. This change also increased

comparability with Canada and Mexico. Paging was found to have a

distinct production function. Canada could not support this activity as

a NAICS industry so it was added as a 5-digit U.S. industry. Wireless

Telecommunications Carriers, Except Satellite will be a new industry

for all three countries.

Satellite Telecommunications is a new industry in all three

countries. It is a new technology that is now being identified as a new

and emerging industry.

Other Telecommunications is a new industry for all three countries.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, the

three country agreement on NAICS envisions that each country may

develop national detailed industries below the NAICS industry level, so

long as the national detail can be aggregated to the NAICS

classification, thus assuring full North American comparability.

The ECPC is proposing U.S. 5-digit industry detail for this NAICS

industry subsector. In the following tables, proposed 5-digit detail is

indicated in italics. For cases where no 5-digit detail is shown, the

ECPC is proposing that the NAICS 4-digit industries will also represent

the most detailed U.S. industries.

Table 1

The definitions of status codes are as follows: E-existing industry; N-new industry; R-revised industry; and *

means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

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

1987 USIC

1997 NAICS and U.S. description Status code code 1987 USIC description

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

XX Broadcasting and Telecommunications

XXX Radio and Television Broadcasting

XXXX Radio Broadcasting

XXXXX Radio Networks.......................... N *4832 Radio Broadcasting

Stations.

XXXXX Radio Stations.......................... N *4832 Radio Broadcasting

Stations.

XXXX Television Broadcasting..................... E 4833 Television Broadcasting

Stations.

XXX Cable Networks and Program Distribution

XXXX Cable Networks.............................. N *4841 Cable and Other Pay

Television Services.

XXXX Cable and Program Distribution................ N *4841 Cable and Other Pay

Television Services.

XXX Telecommunications

XXXX Wired Telecommunications Carriers........... N *4813 Telephone Communications,

Except Radiotelephone

(Carriers).

4822 Telegraph and Other

Message Communications.

XXXX Wireless Telecommunications Carriers, Except N

Satellite.

XXXXX Paging.................................. N *4812 Radiotelephone

Communications (Paging

Carriers).

XXXXX Cellular and Other Wireless N *4812 Radiotelephone

Telecommunications. Communications (Cellular

Carriers).

*4899 Communication Services,

NEC (Radio Dispatch).

XXXX Telecommunications Resellers................ N *4812 Radiotelephone

Communications (Paging

and Cellular Resellers).

*4813 Telephone Communications,

Except Radiotelephone

(Resellers).

XXXX Satellite Telecommunications................ N *4899 Communication Services,

NEC (Satellite).

XXXX Other Telecommunications.................... N *4899 Communication Services,

NEC.

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

Table 2

The abbreviation ``pt'' means ``part of''. @ means time series break has been created that is greater than 3% of

the 1992 revenues for the 1987 SIC industry. The abbreviation NEC is used for Not Elsewhere Classified.

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

1987 USIC code 1987 USIC description 1997 U.S. description

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

[email protected] Radiotelephone Wireless Telecommunications (pt).

Communications. Telecommunications Resellers (pt).

[email protected] Telephone Communications, Wired Telecommunications Carriers (pt.).

Except Radiotelephone. Telecommunications Resellers (pt.).

[email protected] Telegraph and Other Message Wired Telecommunications Carriers (pt.).

Communications.

4832............................. Radio Broadcasting Stations. Radio Networks.

Radio Stations.

4833............................. Television Broadcasting Television Broadcasting.

Stations.

[[Page 38448]]

4841............................. Cable and Other Pay Cable Networks.

Television Services. Cable and Program Distribution.

4899............................. Communications Service, NEC. Wireless Telecommunications Carriers (pt).

Satellite Telecommunications.

Other Telecommunications.

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

Description of Changes to the U.S. System

The Broadcasting and Telecommunications subsector has been

completely restructured for 1997 to reflect the changing technology of

the subsector. New industries are the following:

Radio Networks from part of 1987 Industry Code 4832, Radio

Broadcasting Stations.

Radio Stations from part of 1987 Industry Code 4832, Radio

Broadcasting Stations.

Cable Networks from part of 1987 Industry Code 4841, Cable and

Other Pay Television Services.

Cable and Program Distribution from part of 1987 Industry Code

4841, Cable and Other Pay Television Services.

Wired Telecommunications Carriers from part of 1987 Industry Code

4813, Telephone Communications, except Radiotelephone and Industry Code

4822, Telegraph and Other Message Communications.

Paging from part of 1987 Industry Code 4812, Radiotelephone

Communications.

Cellular and Other Wireless Telecommunications from parts of 1987

Industry Codes 4812, Radiotelephone Communications and Industry Code

4899, Communications Services, Not Elsewhere Classified.

Telecommunications Resellers from part of 1987 Industry Code 4812,

Radiotelephone Communications and part of Industry Code 4813, Telephone

Communications, Except Radiotelephone.

Satellite Telecommunications from part of 1987 Industry Code 4899,

Communications Services, Not Elsewhere Classified.

Other Telecommunications from part of 1987 Industry Code 4899,

Communications Services, Not Elsewhere Classified.

The number of industries in this industry subsector increased from

7 in 1987 to 11 in 1997. For time series linkage, 4 of the 7 1987

industries are comparable within three percent of the 1997 industries.

For the other 3 industries, changes involve splitting a part of 1987

SIC 4-digit industries to obtain more industry detail, in response to

new economic and technological developments in this subsector; the new

more detailed industries can readily be reaggregated for analytical

purposes where time series comparability is important.

Part III--Proposed New Industry Structure for Food Services and

Drinking Places and Accommodations

Section A--NAICS Structure and Narrative

North American Industry Classification System

(NAICS)

Agreement Number 3

This Document represents the proposed agreement on the structure of

the North American Industry Classification System (NAICS) for the

following industries:

Foodservices and Drinking Places

Accommodations

The detailed NAICS structure along with a brief description of the

structure is attached (Attachments 1 and 2). Each country agrees to

release a copy of the proposed NAICS structure to interested data

users. Comments received will be shared among the countries and

discussions held before a final decision on the structure is made. Each

country may add additional detailed industries, below the 4-digit level

of NAICS, as necessary to meet national needs, so long as this

additional detail aggregates to a 4-digit NAICS level in order to

ensure full comparability among the three countries. This NAICS

structure was presented and provisionally accepted at the NAICS

Committee meeting held on May 18 and 19 in Ottawa, Canada.

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

Accepted Signature Date

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

Canada........................ /S/ Jacob Ryten.............. 5/19/95

Mexico........................ /S/ Enrique Ordaz............ 5/19/95

United States................. /S/ Jack E. Triplett......... 5/19/95

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

Attachment 1.--Naics Structure

XX Foodservices and Drinking Places.

XXX Full-Service Restaurants.

XXXX Full-Service Restaurants.

XXX Limited-Service Eating Places.

XXXX Limited-Service Restaurants and Cafeterias.

XXXX Refreshment Places.

XXX Special Foodservices.

XXXX Foodservice Contractors.

XXXX Caterers.

XXXX Mobile Caterers.

XXX Bars, Taverns, and Other Drinking Places (Alcoholic

Beverages).

XXXX Bars, Taverns, and Other Drinking Places

(Alcoholic Beverages).

XX Accommodations.

XXX Traveler Accommodations.

XXXX Hotels and Motels, except Casinos.

XXXX Casino Hotels.

[[Page 38449]]

XXXX Other Traveler Accommodations.

XXX Recreational and Other Accommodations.

XXXX Recreational Vehicle Parks and Camps.

XXXX Rooming and Boarding Houses.

Attachment 2--North American Industry Classification System

Draft Classification for:

Foodservices and Drinking Places Accommodations

Representatives of the statistical agencies of Canada, Mexico and

the United States have agreed to a draft industry classification for

Foodservices and Drinking Places and Accommodations. These are further

subdivided into six industry groups and ten industries.

Achievement of Objectives

The classification meets the objectives for the North American

Industry Classification System. It is comprised of industries that

group establishments with similar production processes, that is, it

applies the production-oriented economic concept. The hierarchical

structure also follows the production concept.

The classification achieves comparability for the three

participating countries. Based on existing data, all three countries

expect to be able to publish data regularly at the NAICS 4-digit

industry level of the NAICS structure with the exception of Casino

Hotels, which will be published only in the United States. All

countries agree on the detailed definitions of the industries.

The classification improves comparability with other countries. The

grouping of the Accommodations Subsector with the Foodservices and

Drinking Places Subsector achieves comparability with the International

Standard Industrial Classification of All Economic Activities (ISIC,

Revision 3) of the United Nations at the 2-digit level, with the

exception of doughnut shops which are included in the Foodservices and

Drinking Places Subsector in NAICS and in the Manufacturing Division in

ISIC. This means that the NAICS classification is the same as, or part

of, a single ISIC 2-digit Division.

Other objectives of the NAICS project have also been met. New

industries for different types of restaurants have been designated.

These classifications reflect changes in the industry that have

occurred in the past but have never been identified in the

classification system.

In addition to the above objectives of the NAICS project, the

classification meets the objectives of an industry classification. The

industries are homogeneous and they are economically significant.

Finally, disruptions to time series at the NAICS industry level have

been kept to a minimum. In the United States, the major changes to

existing classifications at the country level establish additional

detail in the industry group, which can readily be linked to construct

time series.

Foodservices and Drinking Places

Limitations of the Classification

There are some limitations to the draft foodservices and drinking

places hierarchy. A number of related industries that provide

foodservices as a secondary activity are not included. These are such

activities as dinner theaters, dinner cruises, and fraternal

organizations that provide foodservices to their members. These

activities are not included in this industry subsector but will be

classified in other service related industry subsectors based on their

primary activity.

Constraints on the NAICS Classification

A number of industries that can appropriately be defined in terms

of production distinctions could not be published in all countries

because of considerations of size and confidentiality. In addition, the

way activities are combined in establishments differs to some extent in

the different countries. It is anticipated that each country will

publish additional categories that comprise sub-divisions of NAICS

industries, to present data for activities that are nationally

significant.

A General Outline

The foodservices and drinking places grouping of industries is

defined to include establishments that are primarily engaged in

preparing meals, snacks, and beverages to customer order for immediate

consumption, primarily on the premises. Within the subsector Food

Services and Drinking Places, the industry groups (Full-Service

Restaurants; Limited-Service Eating Places; Special Foodservices; and

Bars, Taverns, and Other Drinking Places) reflect the level of service

provided. The NAICS industries are described below.

Full-Service Restaurants provide a complete menu of full meals and

full waiter/waitress service.

Limited-Service Eating Places provide a limited menu, limited

waiter/waitress service, or both. This group is separated into limited-

service restaurants and cafeterias. Limited-Service includes fast food

and take out, plus cafeterias which are distinguished based on the

cafeteria-style serving equipment. Refreshment places include doughnut

shops, pretzel shops, cookie shops, coffee shops, and other such

locations that primarily prepare and provide a single-item menu of food

and drink for immediate consumption. Establishments that primarily

resell food and drink prepared elsewhere, and that do not provide an

eating place, are classified in retail trade.

Special Foodservices provide foodservices under special conditions.

The group distinguishes Foodservice Contractors, Caterers, and Mobile

Caterers. Foodservice Contractors operate under a long term contract to

provide foodservices primarily in institutional, office, or industrial

locations. Caterers provide event-based foodservice for both households

(weddings, etc.) and industrial accounts (trade shows, etc.). Mobile

Caterers are distinguished based on the use of a specialized vehicle

and mobile service. Food carts that prepare foods rather than merely

selling food prepared elsewhere are classified in this industry.

Bars, Taverns, and Other Drinking Places (Alcoholic Beverages) are

distinguished based on the use of special equipment, training and

skills in the preparation and serving of alcoholic beverages.

Some Changes to National Classification

This section highlights some of the significant changes to existing

national industry classifications. For foodservices, all countries have

had separate industries based on food versus alcoholic beverages;

however, this draft proposes new detail for the U.S. and a redefinition

of many of the industries for both Canada and Mexico.

For Canada, this draft regroups the activities included in CSIC

9211, 9212,

[[Page 38450]]

and 9213. Full-Service includes some of the operations that are

currently in CSIC 9211 and 9212. The remaining establishments in these

industries, namely those providing limited service are combined with

the establishments in CSIC 9213 to form the Limited-Service Eating

Places industry of NAICS. New detail for foodservices contractors,

caterers, and mobile caterers has been established from within CSIC

9214.

For Mexico, parts of CMAP 931011 (all but cafeterias, dining cars,

and vending machines), 931013, and 931015 are combined in the full-

service classification. CMAP 931012 (except industrial cafeterias),

931014, and 931015 make up the new Limited-Service Eating Place

industry group.

For the United States, USIC 5812 is split into separate detail for

full-service, limited-service, and special services restaurants with

additional U.S. detail for special services including foodservice

contractors, caterers, and mobile caterers, a total of six new

industries.

Accommodations

Limitations and Constraints of the NAICS Classification

There are some limitations to the draft accommodations structure.

Accommodation establishments, especially hotels and motels, provide

many services other than lodging. For example, many establishments have

restaurants. Others have recreational facilities. Small establishments

with very limited lodging facilities may offer no amenities at all.

Hotels and motels are accordingly not homogeneous with respect to the

services they provide. Moreover, this is by far the largest industry in

the subsector. Nevertheless, no acceptable way was found to clearly

demarcate the hotel and motel industry into more detailed industries

that would be collectible in all three countries, and would apply to

the operations of the industry in all three countries. Each country may

add additional detailed industries, below the 4-digit level of NAICS,

as necessary to meet national needs, so long as this additional detail

aggregates to a NAICS industry level in order to ensure full

comparability among the three countries.

A General Outline

The accommodations area is defined to include establishments that

are primarily engaged in providing short-term accommodations. The

industry groups and industries within accommodations have been grouped

based on the various levels of services and facilities provided. The

NAICS industries are described below.

Hotels and Motels primarily provide traditional types of lodging

services to travelers. In addition to lodging, a range of other

services may be provided.

Casino Hotels include both lodging and gaming casinos as an

integrated facility. Both the lodging and gaming services are generally

major operations and a separate industry has been created to classify

these establishments. Casino Hotels are classified in this industry

regardless of whether separate data are available for the gambling and

hotel activities of these establishments. This industry is becoming

large in the United States, though it does not currently exist in

Canada and Mexico.

Other Traveler Accommodations include bed and breakfast

establishments, hostels, and other establishments that provide lodging

to travelers but provide few of the types of ancillary services that

hotels and motels commonly provide.

Recreational Vehicle Parks and Camps provide special types of

accommodations for travelers, vacationers, and others. The facilities

are often outdoors (such as campsites) and are recreational in nature.

Rooming and Boarding Houses include establishments renting rooms,

with or without board, for indefinite periods. This industry primarily

includes establishments known as rooming houses and student residences.

Changes to the National Classifications

This section highlights some changes to each country's current

industry classification of accommodations. The most significant are:

For the United States, the distinction between membership and non-

membership organizations that provide lodging has been deleted from the

classification. Such activities will be classified based upon the type

of accommodations being provided. The current industry for hotels and

motels (SIC 7011) has been divided into four NAICS industries. Also,

separate industries for recreational vehicle parks and sporting camps

have been combined.

For Canada, the proposal regroups four existing industries (CSIC's

9111, 9112, 9113, 9114) into two NAICS industries within the Traveler

Accommodations industry group. In addition, three existing industries

have been combined into a recreational vehicle parks and camp industry.

For Mexico, the proposal regroups three existing industries (CMAP's

932001, 932002, 932012) into two NAICS industries within the industry

group for traveler accommodations.

Section B--Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, the

three country agreement on NAICS envisions that each country may choose

to develop national detailed industries below the NAICS industry level,

so long as the national detail can be aggregated to the NAICS

classification, thus assuring full North American comparability.

The ECPC is proposing U.S. 5-digit industry detail for the two

NAICS industry subsectors covered in Part III of this notice. In the

following tables, proposed 5-digit detail is indicated in italics. For

cases where no 5-digit detail is shown, the ECPC is proposing that the

NAICS 4-digit industries will also represent the most detailed U.S.

industries.

Table 1

The definitions of status codes are as follows: E-existing industry; N-new industry; R-revised industry; and *

means ``part of''. The abbreviation NEC is used for Not Elsewhere Classified.

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

1987 USIC

1997 NAICS and U.S. description Status Code Code 1987 USIC description

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

XX Foodservices and Drinking Places

XXX Full-Service Restaurants

Full-Service Restaurants.................. N *5812 Eating Places.

XXX Limited-Service Eating Places

XXXX Limited-Service Restaurants and Cafeterias

XXXXX Limited-Service Restaurants............. N *5812 Eating Places(Limited-

Service Restaurants).

[[Page 38451]]

XXXXX Cafeterias.............................. N *5812 Eating Places

(Cafeterias).

XXXX Refreshment Places.......................... N *5812 Eating Places

(Refreshment Places).

*5461 Retail Bakeries (Snacks).

XXX Special Foodservices

XXXX Foodservice Contractors..................... N *5812 Eating Places (Food

Service Contractors).

XXXX Caterers.................................... N *5812 Eating Places (Caterers).

XXXX Mobile Caterers............................. N *5963 Direct Selling

Establishments (Mobile

Caterers).

XXX Bars, Taverns, and Other Drinking Places

(Alcoholic Beverages).

XXXX Bars, Taverns, and Other Drinking Places E 5813 Drinking Places

(Alcoholic Beverages) (Alcoholic Beverages).

XX Accommodations

XXX Traveler Accommodations

XXXX Hotels and Motels, except Casino Hotels... R *7011 Hotels and Motels (Hotels

and Motels, Except

Casino Hotels).

XXXX *7041 Organization Hotels and

Lodging Houses, on

Membership Basis (Except

Hotels).

XXXX Casino Hotels............................. N *7011 Hotels and Motels (Casino

Hotels).

XXXX Other Traveler Accommodations

XXXXX Bed and Breakfast Inns.................... N *7011 Hotels and Motels (Bed

and Breakfast Inns)

XXXXX All Other Traveler Accommodations ............ N *7011 Hotels and Motels (Except

Hotels, Motels and Bed

and Breakfast Inns).

Recreation and Other Accommodations....... *7041 Organization Hotels and

Lodging Houses, on

Membership Basis (Except

Hotels)

XXXX Recreational Vehicle Parks and Camps..........

XXXXX Sporting and Recreation Camps E 7032 Sporting and Recreational

Camps.

XXXXX Recreational Vehicle Parks and E 7033 Recreational Vehicle

CampgroundsE. Parks and Campgrounds

XXXX Rooming and Boarding Houses................... R 7021 Rooming and Boarding

Houses.

*7041 Organization Hotels and

Lodging Houses, on

Membership Basis

(Rooming and Boarding

Houses).

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

Table 2

The abbreviation ``pt'' means ``part of''. @ means a time series break has been created that is greater than 3%

of the 1992 revenues for the 1987 SIC industry.

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

1987 USIC code 1987 USIC description 1997 U.S. description

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

[email protected] Eating Places............... Full-Service Restaurants.

Limited-Service Restaurants.

Cafeterias.

Refreshment Places (pt).

Foodservice Contractors.

Caterers.

5813............................. Drinking Places............. Bars, Taverns, and Other Drinking Places

(Alcoholic Beverages).

7011............................. Hotels and Motels........... Hotels and Motels, except Casino Hotels (pt).

Casino Hotels.

Bed and Breakfast Inns.

All Other Traveler Accommodations, NEC.

7021............................. Rooming and Boarding Houses. Rooming and Boarding Houses (pt).

7032............................. Sporting and Recreational Sporting and Recreation Camps.

Camps.

7033............................. Recreational Vehicle Parks Recreational Vehicle Parks and Campgrounds.

and Campsites.

[email protected] Organization Hotels and Hotels and Motels, except Casino Hotels (pt.).

Lodging Houses, on Rooming and Boarding Houses (pt).

Membership Basis.

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

[[Page 38452]]

Description of Changes to the U.S. System

1. Foodservices and Drinking Places--Seven new industries are added

to the 1997 industry structure for this industry subsector. New

industries are the following:

Full-Service Restaurants from part of 1987 Industry Code 5812,

Eating Places.

Limited-Service Restaurants from part of 1987 Industry Code 5812,

Eating Places.

Cafeterias from part of 1987 Industry Code 5812, Eating Places.

Refreshment Places from parts of 1987 Industry Code 5812, Eating

Places and Industry Code 5461, Retail Bakeries.

Foodservice Contractors from part of 1987 Industry Code 5812,

Eating Places.

Caterers from part of 1987 Industry Code 5812, Eating Places.

Mobile Caterers transferred from part of 1987 Industry Code 5963,

Direct Selling Establishments.

The number of Foodserving and Drinking Places increased from 2 in

1987 to 8 in 1997. For time series linkage, 1 of the 1987 industries is

comparable within three percent of the 1997 industries. Industry 5812

was split into 6 new industries.

2. Accommodations--Three new industries are added to the 1997

industry structure for this industry subsector. New industries are the

following:

Casino Hotels from part of 1987 Industry Code 7011, Hotels and

Motels.

Bed and Breakfast Inns from part of 1987 Industry Code 7011, Hotels

and Motels.

Other Traveler Accommodations, NEC from part of 1987 Industry Code

7011, Hotels and Motels.

One industry was deleted from this industry subsector.

Organization Hotels and Lodging Houses, on Membership Basis was

deleted and the accommodations were split between Hotels and Motels,

except Casino Hotels and Rooming and Boarding Houses.

The number of 1997 Accommodations Industries increased from 5 in

1987 to 7 in 1997. For time series linkage, 4 of the 5 1987 industries

are comparable within three percent of the 1997 industries.

Sally Katzen,

Administrator, Office of Information and Regulatory Affairs

[FR Doc. 95-18258 Filed 7-25-95; 8:45 am]

BILLING CODE 3110-01-P

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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