Initiative to Create a Product Classification System, Phase I

This is historical material, "frozen in time."
The web site is no longer updated and links to external web sites and some internal pages will not work.

Initiative to Create a Product Classification System, Phase I OMB Home

OFFICE OF MANAGEMENT AND BUDGET

Economic Classification Policy Committee; Initiative to Create a Product Classification System, Phase I: Exploratory Effort to Classify Service Products

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

ACTION: Proposed Development of a Comprehensive and Integrated North American Product Classification System

SUMMARY: Under Title 44 U. S. C. 3504(e), the Office of Management and Budget (OMB), through its Economic Classification Policy Committee (ECPC), is seeking public comment on the proposed development of a comprehensive classification system for products produced by North American Industry Classification System (NAICS) industries. The ECPC proposes, over the long term, to develop a comprehensive and integrated North American Product Classification System for the products produced by industries classified under the North American Industry Classification System (NAICS) and, over the short term, to explore the feasibility of identifying and classifying products produced by selected NAICS service industries. The ECPC is particularly seeking proposals for an initial identification of the service products created by industries in selected service sectors as well as comments on related discussions of needs and uses for product data, guiding principles for the product classification development, and organization and tasks of the product classification committees. In addition, the ECPC is seeking information sources in the academic and business communities that can be used by the classification committees to identify the products created by the service industries included in Phase I (see Industry Appendix).

DATES: To ensure consideration, all comments on the development of a product classification system and proposals for products must be received electronically or in writing no later than June 15, 1999.

ADDRESSES: Please send comments and proposals for products electronically either by e-mail to prodclass@ccmail.census.gov or by using the response form found on www.census.gov/products. Proposals may also be mailed to Michael F. Mohr, Coordinator, ECPC Initiative to Classify Service Products, Bureau of the Census, U.S. Department of Commerce, Room 2633-3, Washington, DC 20233, telephone number (301) 457-2589, FAX (301) 457-1536. Proposals will become part of the library of background information to guide the work of the classification committees. All comments and proposals received in response to this notice will be available for public inspection at the Bureau of the Census, U.S. Department of Commerce, 4700 Silver Hill Road, Suitland, MD 20233. Please telephone the Bureau of the Census at (301) 457-2589 to make an appointment. Those making proposals will be notified directly of action taken by the ECPC.

Those wishing to identify information sources for the service industries included in Phase I should do so either through the web site at www.census.gov/products, or by e-mail to prodclass@ccmail.census.gov, or by contacting Michael F. Mohr, Coordinator, ECPC Initiative to Classify Service Products, Bureau of the Census, U.S. Department of Commerce, Room 2633-3, Washington, DC 20233, telephone number (301) 457-2589, FAX (301) 457-1536.

Web Page: A Web Page for the product classification initiative can be found at www.census.gov/products. This site provides extensive information on, and will report news about, the initiative; it also provides a structured medium through which interested parties can participate electronically in Phase I by identifying information sources and submitting proposals for the products produced by the covered service industries.

Electronic Availability: This document is available on the World Wide Web from the Census Bureau at the address <http://www.census.gov/products> under the listing Federal Register Notice. This document is also available via File Transfer Protocol (FTP) at the address <ftp.census.gov/pub/epcd/www/products/products99.txt>. A more comprehensive treatment of the subject matter contained in this notice is provided in a Discussion Paper that is also available electronically at the foregoing addresses. Copies of the NAICS manual referenced in this notice can be ordered from the National Technical Information Service at the address <http://www.ntis.gov/naics> or (800) 553-6847.

FOR FURTHER INFORMATION CONTACT: Parties wishing further information on the work described in this notice should contact Michael F. Mohr, Coordinator: ECPC Initiative to Classify Service Products, Bureau of the Census, U.S. Department of Commerce, Room 2633-3, Washington, DC 20233, E-mail michael.f.mohr@ccmail.census.gov, telephone number (301) 457-2589, FAX (301)457-1536.

SUPPLEMENTARY INFORMATION:

Background

In a Federal Register notice of July 26, 1994 (59 FR 38092-38096), OMB announced that the ECPC had agreed to work in concert with Mexico's Instituto Nacional de Estadística, Geografía e Informática (INEGI) and Statistics Canada to develop a new and common industry classification system - the North American Industry Classification System (NAICS) - that would replace the existing system used in the United States, the Standard Industrial Classification System (SIC). Final agreement on NAICS was announced in a Federal Register notice of April 9, 1997 (62 FR 17287-17337). This agreement resulted in the publication in 1998 of the new North American Industry Classification System, United States, 1997 manual.

In addition to announcing the development of NAICS, the 1994 Federal Register notice also indicated that each country would provide product data compiled within the framework of its respective statistical system, to meet the need for such information. Recognizing the increasing international trade in goods and services, each country envisaged working cooperatively to help improve existing commodity classification systems, including the Harmonized System (HS) of the Customs Cooperation Council and the United Nations' Provisional Central Product Classification System (CPC) for services.⁽¹⁾ In particular, the three countries agreed that such cooperation would entail coordinating their product classification efforts and keeping each other informed of proposals for change in this area. Integral to the product classification accord was a common recognition by the statistical agencies of the three countries that "market-oriented, or demand-based, groupings of economic data are required for many purposes, including studies of market share, demand for goods and services, import competition in domestic markets and similar studies."⁽²⁾

In recognition of the product classification accord, the ECPC committed to expanding the list of commodities and services that would be available from the 1997 Economic Censuses. The ECPC also established two product code task forces to implement this commitment - the Investment Goods Product Code Task Force and the Service Product Code Task Force. Although preliminary work on service products classification began in 1993, that work was subsequently terminated because the total restructuring of the industry classification system consumed all available resources within the statistical agencies.⁽³⁾

Having now largely accomplished the industry classification objectives for NAICS, the ECPC is announcing a new initiative to develop a comprehensive classification system for the products produced by NAICS industries. This initiative will be conducted as a joint effort by Canada, Mexico, and the United States. The long-term objective of the joint initiative is to develop a market-oriented/demand-based classification system for products that (a) is not industry-of-origin based but can be linked to the NAICS industry structure, (b) is consistent across the three NAICS countries, and (c) promotes improvements in the identification and classification of service products across international classification systems, such as the Central Product Classification System of the United Nations.

Product Classification System Initiative

The ECPC anticipates that the initiative to classify service products will be a comprehensive effort that addresses both the conceptual issues and the data collection issues necessary to ensure that the system is conceptually sound, feasible to implement, and relevant to analytical and operational objectives. The initiative will be implemented in two phases. An interim, or exploratory, phase to be launched in early 1999 and completed during 2000 (Phase I), will develop preliminary product classifications for a subset of NAICS service industries. These results will be incorporated in the 2002 Economic Census and related programs. A second, or final, phase of this initiative will be launched after the 2002 Economic Census. Exploiting the lessons and insights gained from the deliberations of Phase I and the data collection activities of the 2002 Economic Census, this phase (Phase II) will develop a complete and fully integrated product classification system that extends to all NAICS industries. The results of Phase II will be incorporated in the 2007 Economic Census and related programs.

In undertaking this effort, the ECPC recognizes that the development of even a preliminary classification system for selected service products will be a complex endeavor that will tax the expertise of the statistical agencies which currently lack familiarity with how industry produces these service products. Accordingly, the ECPC is actively seeking information sources in the academic and business communities that can be used by the classification committees to identify the products created by the service industries included in Phase I (see Industry Appendix). Commentors who wish to provide such information should refer to the ADDRESSES section of this notice.

The ECPC is seeking proposals for the initial identification of service products as well as comments on the discussion of needs and uses and guiding principles for the product classification, and the organization and tasks of the classification committees. In accordance with the proposed classification development process outlined below, the ECPC requests that respondents to this notice support their proposals for the identification and definition of service products for service industries included in Phase I of this initiative with documentation that provides information to support the following tasks:

Developing a model/description of the production process for each industry;
Identifying/defining the final products sold by each industry;
Developing formal definitions for the identified products; and
Proposing suggestions for organizing the products identified for each sector into a market-oriented classification system that will allow users to:
identify the quantity and price(s) of each product produced by each industry,
aggregate common products across all industries, and
group and aggregate products in a manner that satisfies the demand-side classification framework adopted by the three NAICS countries.

Phase I: Classification of Service Products

The first or interim phase of the initiative proposes to identify and classify the products produced by the industries in four NAICS service sectors - Information (Sector 51); Finance and Insurance (Sector 52) except Insurance (Subsector 524); Professional, Scientific, and Technical Services (Sector 54); and Administrative and Support, Waste Management and Remediation Services (Sector 56).⁽⁴⁾

Needs and Uses

There are two reasons for the focus on services in Phase I. First, the value of final production produced by industries included in NAICS service sectors now accounts for about 45 percent of private sector Gross Domestic Product (GDP) in the U.S., and these sectors include some of the fastest growing segments of the economy, such as computer services, communications, management consulting, temporary help services, and health services. Second, despite its importance in the overall private economy, the U.S. currently has no product classification system for service industries. In contrast, the Census Bureau has been collecting product-level data for manufacturing industries since at least the 1899 Census of Manufactures; by 1939 it was collecting data for approximately 6,400 manufactured products. Moreover, the Census Bureau has had a published list of manufactured products and product codes since 1947 - the Numerical List of Manufactured and Mineral Products, which has been revised and updated every five years (in conjunction with the economic censuses). By 1967 the list of manufactured products had grown to 10,500, but more than 12,000 products were included under the NAICS classification system for the 1997 Economic Census.

The collection of product data for these manufactured products by the Census Bureau and the collection of associated producer price data by the Bureau of Labor Statistics (BLS) have long provided national accountants and researchers with the information necessary to estimate, monitor, and analyze the growth in real output, prices, productivity, international trade, and competitiveness in the manufacturing sector. In turn, these manufacturing estimates and analyses have long served to influence and guide the formulation of government policies, including industrial, international trade, fiscal, and monetary policies. And, within the business community, Census Bureau tabulations of the detailed products made and used by manufacturers have been highly valued and much utilized, as a reliable and comprehensive source of information on trends and new developments in the product markets in which businesses operate and compete.

Over the last several decades, however, the share of U.S. national output derived from service sector industries has grown to exceed the share derived from manufacturing and all other goods-producing sectors combined. Moreover, that share seems certain to grow over the long-term and, perhaps, accelerate its pace. In recognition of this profound structural change, the ECPC believes it is critical to provide the business and economics community - business analysts, policy makers, researchers, and statistical agencies - with the kind of comprehensive, well-organized data on the products produced by service industries that presently exist for the products produced by manufacturing and other goods-producing industries.

Thus, the overriding objective of Phase I of the initiative is to systematically explore the development of a formal classification system for service products that can be used throughout the public and private communities of users to coordinate the collection, tabulation, and analysis of data on the value of the detailed products sold or produced for final consumption by selected service industries and on the prices charged for those products. Although preliminary, the results from Phase I will be available to guide the collection of data for service products in the affected industries during the 2002 Economic Census. In contrast to Phase I, the ultimate objective of Phase II of the initiative will be to develop an agreed-upon, integrated, and comprehensive list of products, product definitions, and product codes that (1) encompasses the products of both goods- and service-producing industries alike and (2) accommodates a demand-side/market-oriented classification framework for grouping and aggregating these products.

Guiding Principles

The ECPC is proposing three general principles to guide the overall process of classifying the products produced by industries:

1. An understanding of the production process of the reporting units included in the respective industries is a required first principle for identifying and defining the product(s) actually produced for final consumption by those industries.⁽⁵⁾

2. The aim of the product classification process should be to identify, define, and classify the final products produced and transacted by the reporting units within each industry. The final products of reporting units in an industry are those that are created and transacted (sold or transferred) by the reporting units to economic entities outside of the individual reporting units.

3. The classification of products produced by industries should be based on a market-oriented, or demand-based, conceptual framework.⁽⁶⁾

With respect to the first principle, the ECPC believes it is necessary to approach the process of product classification for industries from the perspective of the production process because it provides the necessary conceptual framework for: (a) identifying the activities performed by a given industry, (b) facilitating an ordered consideration of information and competing hypotheses about the role of any products derived from those activities in the production process, (c) developing informed judgements about the final products produced by the industry, and (d) providing insights into the transaction unit that is appropriate and feasible for measuring the respective products and the reporting unit that is appropriate for collecting the data. Put simply, in order to satisfy the second principle, it is necessary to distinguish the final products produced by a given industry's production process from the intermediate outputs produced and consumed by that process. While this approach has significance for industries generally, it is especially important in the case of service industries where, in contrast to goods-producing industries such as manufacturing, there exists much confusion about what many service industries do and how they do it.

Finally, once the products of the industries have been identified and defined, it is necessary to organize those products according to a consistent classification principle that is acceptable and useful to all segments of the data using community. The third principle reflects the ECPC's commitment to satisfy this requirement in a manner that reflects the consensus reached on this issue by the three NAICS countries. The guiding role of the third principle in classifying and grouping products was enunciated by Triplett [1994a, p. 6], who noted that a product grouping system "should incorporate, and facilitate the analysis of, the relationships among products - demand relations, substitution relations, marketing relationships, uses by consumers or by other ultimate purchasers."

Guidelines for Product Identification in Service Industries

Identifying the final products of each industry is the first step in developing a product classification system. Recognizing that this step can be difficult for many service industries, the ECPC intends that private sector respondents to this Initiative and the classification committees will formulate proposals for the products of a given service industry in the context of the following definitions and guidelines.

Conceptual Definition of a Service Product: A service is a change in the condition of a person, or a good belonging to some economic entity, brought about as the result of the activity of some other economic entity, with the approval of the first person or economic entity.⁽⁷⁾ To correctly define the product(s) of a service industry it is essential to specify exactly what the producer agrees to sell and what the customer agrees to buy. That is, a determination must be made of what is implicitly or explicitly "contracted for" when a transaction takes place. Further, it is important to distinguish between the output the industry produces and the activities carried out by the industry to produce the output.⁽⁸⁾

Final Service Product: The final products of reporting units in an industry are the service products (simple, composite, or bundle) that are created and transacted (sold or transferred) by the reporting units to other reporting units, enterprises, institutions or persons; domestic or international.

Types of Service Products: The final service products may include one or more of the following broad types:⁽⁹⁾

(a) simple service: a standard service whose real output can often be measured in physical units or counts; e.g., a traditional haircut or basic phone service.

(b) composite service: a product that embodies several distinct services that are produced together (by virtue of regulations, production process, safety or hygiene requirements, or industry practice). The customer is not free to pick and choose among the several services in the composite -- the consumer buys all or none; e.g., a conventional hotel room rental includes maid service, salon haircuts include shampooing, or the final product (diagnosis or course of treatment) created by a doctor's office visit may embody a variety of required diagnostic services (see related discussion in section C below).

(c) service bundle: a product containing a collection of services negotiated between the service provider and the customer and whose composition may vary by customer; e.g., traditional phone service plus call waiting and/or caller ID, etc., a bundle of information services that can be transmitted through a common medium (cable, satellite) and that may include voice, data and/or visual services, etc., or different bundles of janitorial services, or legal services, or accounting services, etc.

Product Detail: Identify and define products for your selected industry at a level of detail that accords with prevailing marketing practices and record keeping practices in the industry.

Classification Committees

Phase I of the initiative will be accomplished through the creation of four classification committees (one per sector) that will operate simultaneously and draw on the combined talent and resources of the Federal statistical agencies. The ECPC also will strive to provide each committee with consultancy support from private sector industry experts. The committees will implement a comprehensive product classification process for each NAICS service industry in the Industry Appendix below. The process will include:

1. Developing a model/description of the production process for each industry;

2. Identifying/defining the final products sold by each industry;

3. Developing formal definitions for the identified products; and

4. Proposing suggestions for organizing the products identified for each sector into a market-oriented classification system that will allow users to:

a. identify the quantity and price(s) of each product produced by each industry,

b. aggregate common products across all industries, and

c. group and aggregate products in a manner that satisfies the demand-side classification framework adopted by the three NAICS countries.

In addition, each classification committee will consider issues related to the unit of measurement and to the feasibility of measuring and reporting data on output and prices for the products identified for the respective service industries, including industry record-keeping practices and reporting units.

Donald R. Arbuckle,
Acting Administrator and Deputy Administrator,
Office of Information and Regulatory Affairs.

References

Chadeau A. [1997], "Prices of Services to Enterprises," paper presented in Twelfth Meeting of Voorburg Group on Service Statistics, Copenhagen: Denmark, September 15-19, 1997.

Economic Classification Policy Committee [1994], "Standard Industrial Classification Replacement," Federal Register, July 26, p. 38092-96.

_______ [1993a], "Issue Paper No. 6, Services Classifications," Bureau of Economic Analysis (BE-42), U.S. Department of Commerce, Washington: DC, September.

_______ [1993b], "Issue Paper No. 1, Conceptual Issues," Federal Register, March 31, pp. 16991-17000.

Hill, T. P. [1977], "On Goods and Services," Review of Income and Wealth, vol. 123 (4), pp. 315-38.

Office of Management and Budget [1998], North American Industry Classification System, United States, 1997, Bernan Press: Lanham, Maryland.

_______ [1997], "1997 North American Industry Classification System-1987 Standard Industrial Classification Replacement," Federal Register, April 9, pp. 17287-17337.

_______ [1992], Economic Classification Policy Committee Charter, Washington: DC, July, letter with two pages.

Sherwood, M. J. [1997], "Output of the Property and Casualty Insurance Industry," paper (revised February 1998), presented at the Centre for the Study of Living Standards Conference on Service Sector Productivity and the Productivity Paradox, Ottawa, April 11-12, 1997.

Triplett, J. E. [1994a], "Economic Concepts for Economic Classifications, Survey of Current Business, November, pp. 45-49.

_______ [1994b], "Economic Classification in the New North American Industry Classification System (NAICS)," paper presented at Seminar on New Directions in Statistical Methodology, Washington, DC, May 25, 1994.

_______ [1990], "The Theory of Industrial and Occupational Classifications and Related Phenomena," in 1990 Annual Research Conference, Proceedings in Arlington, Virginia, March 18-21, 1990, by the Bureau of the Census, Washington, DC: U.S. Government Printing Office), pp. 9-25.

United Nations [1998], Central Product Classification (CPC), Version 1.0, Statistical Papers, Series M, No. 77, Very 1.0, Department of Economics and Social Affairs, Statistics Division, New York.

Industry Appendix

U.S. Industries Arranged by NAICS Sectors, Subsectors, and Industry Groups

51 INFORMATION
511   Publishing Industries
5111   Newspaper, Periodical, Book, and Database Publishers
51111   Newspaper Publishers
51112   Periodical Publishers
51113   Book Publishers
51114   Database and Directory Publishers
51119   Other Publishers
511191   Greeting Card Publishers
511199   All Other Publishers
5112   Software Publishers
51121   Software Publishers
512   Motion Picture & Sound Recording Industries
5121   Motion Picture & Video Industries
51211   Motion Picture & Video Production
51212   Motion Picture & Video Distribution
51213   Motion Picture & Video Exhibition
512131   Motion Picture & Theaters (except Drive-Ins)
512132   Drive-In Motion Picture Theaters 51219   Postproduction Services and Other Motion Picture and Video Industries
512191   Teleproduction and Other Postproduction Services
512199   Other Motion Picture and Video Industries
513   Broadcasting & Telecommunications
5131   Radio & Television Broadcasting
51311   Radio Broadcasting
513111   Radio Networks
513112   Radio Stations
51312   Television Broadcasting
5132   Cable Networks & Program Distribution
51321   Cable Networks
51322   Cable & Other Program Distribution
5133   Telecommunications
51332   Wireless Telecommunications Carriers (except Satellite)
513321   Paging
513322   Cellular & Other Wireless Telecommunications
51333   Telecommunications Resellers
51334   Satellite Telecommunications
51339   Other Telecommunications
514   Information Services & Data Processing Services
5141   Information Services
51411   News Syndicates
51412   Libraries & Archives
51419   Other Information Services
514191   On-Line Information Services
514199   All Other Information Services
5142   Data Processing Services
51421   Data Processing Services

52 FINANCE & INSURANCE
521   Monetary Authorities - Central Bank
5211   Monetary Authorities - Central Bank
52111   Monetary Authorities - Central Bank
522   Credit Intermediation & Related Activities
5221   Depository Credit Intermediation
52211   Commercial Banking
52212   Savings Institutions
52213   Credit Unions
52219   Other Depository Credit Intermediation
5222   Nondepository Credit Intermediation
52221   Credit Card Issuing
52222   Sales Financing
52229   Other Nondepository Credit Intermediation
522291   Consumer Lending
522292   Real Estate Credit
522293   International Trade Financing
522294   Secondary Market Financing
522298   All Other Nondepository Credit Intermediation
5223   Activities Related to Credit Intermediation
52231   Mortgage & Nonmortgage Brokers
52232   Financial Transactions Processing, Reserve, & Clearinghouse Activities
52239   Other Activities Related to Credit Intermediation
523   Securities, Commodity Contracts & Other Financial Investments & Related Activities
5231   Securities & Commodity Contracts Intermediation & Brokerage
52311   Investment Banking & Securities Dealing
52312   Securities Brokerage
52313   Commodity Contracts Dealing
52314   Commodity Contracts Brokerage
5232   Securities &Commodity Exchanges
52321   Securities & Commodity Exchanges
5239   Other Financial Investment Activities
52391   Miscellaneous Intermediation
52392   Portfolio Management
52393   Investment Advice
52399   All Other Financial Investment Activities
523991   Trust, Fiduciary & Custody Activities
523999   Miscellaneous Financial Investment Activities
525   Funds, Trusts & Other Financial Vehicles
5251   Insurance & Employee Benefit Funds
52511   Pension Funds
52512   Health & Welfare Funds
52519   Other Insurance Funds
5259   Other Investment Pools & Funds
52591   Open-End Investment Funds
52592   Trusts, Estates & Agency Accounts
52593   Real Estate Investment Trusts<> 52599   Other Financial Vehicles

54 PROFESSIONAL, SCIENTIFIC & TECHNICAL SERVICES
541   Professional, Scientific & Technical Services
5411   Legal Services
54111   Offices of Lawyers
54112   Offices of Notaries
54119   Other Legal Services
541191   Title Abstract & Settlement Offices
541199   All Other Legal Services
5412   Accounting, Tax Preparation, Bookkeeping & Payroll Services
54121   Accounting, Tax Preparation, Bookkeeping & Payroll Services
541211   Offices of Certified Public Accountants
541213   Tax Preparation Services
541214   Payroll Services
541219   Other Accounting Services
5413   Architectural, Engineering & Related Services
54131   Architectural Services
54132   Landscape Architectural Services
54133   Engineering Services
54134   Drafting Services
54135   Building Inspection Services
54136   Geophysical Surveying & Mapping Services
54137   Surveying & Mapping (except Geophysical) Services
54138   Testing Laboratories
5414   Specialized Design Services
54141   Interior Design Services
54142   Industrial Design Services
54143   Graphic Design Services
54149   Other Specialized Design Services
5415   Computer Systems Design &Related Services
54151   Computer Systems Design & Related Services
541511   Custom Computer Programming Services
541512   Computer Systems Design Services
541513   Computer Facilities Management Services
541519   Other Computer Related Services
5416   Management, Scientific, & Technical Consulting Services
54161   Management Consulting Services
541611   Administrative Management & General Management Consulting Services
541612   Human Resources & Executive Search Consulting Services
541613   Marketing Consulting Services
541614   Process, Physical Distribution & Logistics Consulting Services
541618   Other Management Consulting Services
54162   Environmental Consulting Services
54169   Other Scientific & Technical Consulting Services
5417   Scientific Research & Development Services
54171   Research & Development in the Physical, Engineering & Life Sciences
54172   Research & Development in the Social Sciences & Humanities
5418   Advertising & Related Services
54181   Advertising Agencies
54182   Public Relations Agencies
54183   Media Buying Agencies
54184   Media Representatives
54185   Display Advertising
54186   Direct Mail Advertising
54187   Advertising Material Distribution Services
54189   Other Services Related to Advertising
5419   Other Professional, Scientific, and Technical Services
54191   Marketing Research & Public Opinion Polling
54192   Photographic Services
541921   Photography Studios, Portrait
541922   Commercial Photography
54193   Translation & Interpretation Services
54194   Veterinary Services
54199   All Other Professional, Scientific & Technical Services

56 ADMINISTRATIVE AND SUPPORT AND WASTE MANAGEMENT AND REMEDIATION SERVICES
561   Administrative & Support Services
5611   Office Administrative Services
56111   Office Administrative Services
5612   Facilities Support Services
56121   Facilities Support Services
5613   Employment Services
56131   Employment Placement Agencies
56132   Temporary Help Services
56133   Employee Leasing Services
5614   Business Support Services
56141   Document Preparation Services
56142   Telephone Call Centers
561421   Telephone Answering Services
561422   Telemarketing Bureaus
56143   Business Service Centers
561431   Private Mail Centers
561439   Other Business Service Centers (including Copy Shops)
56144   Collection Agencies
56145   Credit Bureaus
56149   Other Business Support Services
561491   Repossession Services
561492   Court Reporting & Stenotype Services
561499   All Other Business Support Services
5615   Travel Arrangement & Reservation Services
56151   Travel Agencies
56152   Tour Operators
56159   Other Travel Arrangement & Reservation Services
561591   Convention and Visitors Bureaus
561599   All Other Travel Arrange & Reservation Services
5616   Investigation & Security Services
56161   Investigation, Guard & Armored Car Services
561611   Investigation Services
561612   Security Guards & Patrol Services
561613   Armored Car Services
56162   Security Systems Services
561621   Security Systems Services (except Locksmiths)
561622   Locksmiths
5617   Services to Buildings & Dwellings
56171   Exterminating & Pest Control Services
56172   Janitorial Services
56173   Landscaping Services
56174   Carpet & Upholstery Cleaning Services
56179   Other Services to Buildings & Dwellings
5619   Other Support Services
56191   Packaging & Labeling Services
56192   Convention & Trade Show Organizers
56199   All Other Support Services
562   Waste Management & Remediation Services
5621   Waste Collection
56211   Waste Collection
562111   Solid Waste Collection
562112   Hazardous Waste Collection
562119   Other Waste Collection
5622   Waste Treatment & Disposal
56221   Waste Treatment & Disposal
562211   Hazardous Waste Treatment & Disposal
562212   Solid Waste Landfill
562213   Solid Waste Combustors & Incinerators
562219   Other Nonhazardous Waste Treatment & Disposal
5629   Remediation & Other Waste Management Services
56291   Remediation Services
56292   Materials Recovery Facilities
56299   All Other Waste Management Services
562991   Septic Tank & Related Services
562998   All Other Miscellaneous Waste Management Services

1. The provisional CPC has since been replaced by version 1.0; see United Nations [1998].

2. See Economic Classification Policy Committee [1994], 59 FR 38094.

3. Nonetheless, the ECPC's product classification objectives with respect to investment goods were largely achieved.

4. In addition to these four sectors, NAICS service sectors also include: Real Estate and Rental and Leasing (Sector 53); Management of Companies and Enterprises (Sector 55); Educational Services (Sector 61); Health Care and Social Assistance (Sector 62); Arts, Entertainment, and Recreation (Sector 71); Accommodation and Food Services (Sector 72); and Other Services (except Public Administration) (Sector 81).

5. The ECPC recognized the dual importance of this principle for classifying both service industries and the products produced by such industries early on; see Economic Classification Policy Committee [1993a], Section 6.5.

6. This classification principle was first established in several papers by Triplett [1990, 1994a, and 1994b]; see also Economic Classification Policy Committee [1993b].

7. See Hill [1977, p.318].

8. See Sherwood [1997, p.3].

9. These service product types were suggested by Chadeau [1997, p.2].

Federal Register 1999, Part 2

Proposed Implementation of Paperwork Elimination Act

Policy Letter 99-1 on Government-Wide Small Business

Notice of Availability of Circular A-133 Compliance Supplement

Proposed Revision to OMB Circular A-110

Interim Final Revision of OMB Circular A-127

Policy Letter 99-X on Promoting Subcontracting

1997 North American Industry Classification System-Completion Activities for 2002

Final Policy Directive, Small Business Competitiveness Demonstration Program