Notice2021-27536
North American Industry Classification System-Revision for 2022; Update of Statistical Policy Directive No. 8, North American Industry Classification System: Classification of Establishments; and Elimination of Statistical Policy Directive No. 9, Standard Industrial Classification of Enterprises
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Published
December 21, 2021
Effective
January 1, 2022
Issuing agencies
Management and Budget Office
Abstract
The Office of Management and Budget (OMB) announces its final decisions to accept the recommendations of the Economic Classification Policy Committee (ECPC), as outlined in the July 2, 2021, Federal Register notice. OMB accepts the ECPC recommendations for the 2022 revisions to the North American Industry Classification System (NAICS), as well as the recommendations to update OMB Statistical Policy Directive No. 8, North American Industry Classification System: Classification of Establishments and to eliminate OMB Statistical Policy Directive No. 9, Standard Industrial Classification of Enterprises. In large part, the series of revisions for NAICS are designed to address decreasing usefulness of employing the mode of delivery (online versus in store/print) as an industry delineation criterion in the Wholesale Trade, Retail Trade, and Information sectors. In short, the internet has developed from a specialized activity to a generic method of delivery for goods and services. Therefore, the 2022 revisions to NAICS reflect a deemphasis on the delivery method as an industry function used in NAICS classification. In addition, OMB has accepted the ECPC recommendations with respect to biobased products manufacturing and renewable chemicals manufacturing topic areas, including the decision to continue research and outreach in this important emerging area. There are four parts in the SUPPLEMENTARY INFORMATION section below, which provide more information. Part I summarizes the background of NAICS and this revision cycle. Part II contains a summary of public comments in response to the July 2, 2021, Federal Register notice. Part III includes a summary of the ECPC recommendations. Part IV outlines OMB's final decisions.
Full Text
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<title>Federal Register, Volume 86 Issue 242 (Tuesday, December 21, 2021)</title>
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[Federal Register Volume 86, Number 242 (Tuesday, December 21, 2021)]
[Notices]
[Pages 72277-72279]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-27536]
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OFFICE OF MANAGEMENT AND BUDGET
North American Industry Classification System--Revision for 2022;
Update of Statistical Policy Directive No. 8, North American Industry
Classification System: Classification of Establishments; and
Elimination of Statistical Policy Directive No. 9, Standard Industrial
Classification of Enterprises
AGENCY: Office of Information and Regulatory Affairs, Office of
Management and Budget, Executive Office of the President.
ACTION: Notice of NAICS 2022 Final Decisions; Update of Statistical
Policy Directive No. 8, North American Industry Classification System:
Classification of Establishments; and Elimination of Statistical Policy
Directive No. 9, Standard Industrial Classification of Enterprises.
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SUMMARY: The Office of Management and Budget (OMB) announces its final
decisions to accept the recommendations of the Economic Classification
Policy Committee (ECPC), as outlined in the July 2, 2021, Federal
Register notice. OMB accepts the ECPC recommendations for the 2022
revisions to the North American Industry Classification System (NAICS),
as well as the recommendations to update OMB Statistical Policy
Directive No. 8, North American Industry Classification System:
Classification of Establishments and to eliminate OMB Statistical
Policy Directive No. 9, Standard Industrial Classification of
Enterprises. In large part, the series of revisions for NAICS are
designed to address decreasing usefulness of employing the mode of
delivery (online versus in store/print) as an industry delineation
criterion in the Wholesale Trade, Retail Trade, and Information
sectors. In short, the internet has developed from a specialized
activity to a generic method of delivery for goods and services.
Therefore, the 2022 revisions to NAICS reflect a deemphasis on the
delivery method as an industry function used in NAICS classification.
In addition, OMB has accepted the ECPC recommendations with respect to
biobased products manufacturing and renewable chemicals manufacturing
topic areas, including the decision to continue research and outreach
in this important emerging area. There are four parts in the
SUPPLEMENTARY INFORMATION section below, which provide more
information. Part I summarizes the background of NAICS and this
revision cycle. Part II contains a summary of public comments in
response to the July 2, 2021, Federal Register notice. Part III
includes a summary of the ECPC recommendations. Part IV outlines OMB's
final decisions.
DATES: Effective Date for 2022 NAICS United States codes and
Statistical Policy Directives: Federal statistical establishment data
published for reference years beginning on or after January 1, 2022,
should be published using the 2022 NAICS United States codes.
Publication of NAICS United States, 2022 Manual is planned for January
2022 on the NAICS website at <a href="http://www.census.gov/naics">www.census.gov/naics</a>. The updated
Statistical Policy Directive No. 8, North American Industry
Classification System: Classification of Establishments, will be
effective immediately and will be posted on the OMB Statistical
Programs and Standards website at <a href="http://www.whitehouse.gov/omb/information-regulatory-affairs/statistical-programs-standards/">www.whitehouse.gov/omb/information-regulatory-affairs/statistical-programs-standards/</a>. Statistical Policy
Directive No. 9, Standard Industrial Classification of Enterprises,
will be eliminated effective immediately.
ADDRESSES: Correspondence about the adoption and implementation of the
2022 NAICS as shown in the July 2, 2021, Federal Register notice should
be sent to: Office of the Chief Statistician, Office of Management and
Budget, New Executive Office Building, Washington, DC 20503; email:
<a href="/cdn-cgi/l/email-protection#f792949899d999969e9484c5c7c5c5b7949299848284d9909881"><span class="__cf_email__" data-cfemail="c4a1a7abaaeaaaa5ada7b7f6f4f6f684a7a1aab7b1b7eaa3abb2">[email protected]</span></a>.
Inquiries about the content of industries or requests for
electronic copies of the 2022 NAICS tables that cannot be satisfied by
use of the NAICS website should be sent by email to:
<a href="/cdn-cgi/l/email-protection#d0b5b3bfbefebeb1b9b3a3e2e0e2e290b3b5bea3a5a3feb7bfa6"><span class="__cf_email__" data-cfemail="b1d4d2dedf9fdfd0d8d2c283818383f1d2d4dfc2c4c29fd6dec7">[email protected]</span></a>.
Electronic Availability: Federal Register notices are available
electronically at <a href="http://www.federalregister.gov/">www.federalregister.gov/</a>. This document and the July
2, 2021, Federal Register notice are also available on the NAICS
website at <a href="http://www.census.gov/naics">www.census.gov/naics</a>. The revision for 2022 will result in a
number of code and title changes for NAICS. For that reason, a full
list of NAICS 2022 industry codes and titles will be posted on the
NAICS website referenced above prior to publication of the NAICS United
States, 2022 Manual for reference and implementation planning. The
NAICS website referenced above also contains previous NAICS United
States Federal Register notices, ECPC Issues Papers, ECPC Reports, the
structures, industry definitions, and related documents for previous
versions of NAICS United States.
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FOR FURTHER INFORMATION CONTACT: NAICS classification staff may be
reached by email at <a href="/cdn-cgi/l/email-protection#b8dddbd7d696d6d9d1dbcb8a888a8af8dbddd6cbcdcb96dfd7ce"><span class="__cf_email__" data-cfemail="d9bcbab6b7f7b7b8b0baaaebe9ebeb99babcb7aaacaaf7beb6af">[email protected]</span></a>.
For information about this notice, contact Kerrie Leslie, Office of
Management and Budget, 9215 New Executive Office Building, 725 17th St.
NW, Washington, DC 20503, telephone (202) 395-1093.
SUPPLEMENTARY INFORMATION:
I. Background: The North American Industry Classification System
(NAICS) is a system for classifying establishments (individual business
locations) by type of economic activity. Mexico's Instituto Nacional de
Estad[iacute]stica y Geograf[iacute]a (INEGI), Statistics Canada, and
the United States Office of Management and Budget (OMB), through its
interagency Economic Classification Policy Committee (ECPC), jointly
developed NAICS in 1997 and continue to collaborate on NAICS to make
the industry statistics produced by the three countries comparable.
NAICS helps ensure that establishment data produced across the Federal
statistical system are comparable and can be used together in analysis.
It is important to note that NAICS is designed and maintained
solely for statistical purposes to improve and keep current this
Federal statistical standard. Consequently, although the classification
may also be used for various nonstatistical purposes (e.g., for
administrative, regulatory, or taxation functions), the requirements of
government agencies or private users that choose to use NAICS for
nonstatistical purposes play no role in its development or revision.
For the 2022 revision, Canada, Mexico, and the United States
focused on new and emerging industries, as well as the continued
usefulness of employing the mode of delivery (online versus in store/
print) as an industry delineation criterion in the Wholesale Trade,
Retail Trade, and Information sectors.
The July 2, 2021, Federal Register notice: (1) Summarized the
background for the proposed revisions to NAICS 2017 in Part I; (2)
contained a summary of public comments to the February 26, 2020,
Federal Register notice (85 FR 11120) regarding priorities for changes
to NAICS in 2022, the ECPC recommendation to update OMB Statistical
Policy Directive No. 8, Standard Industrial Classification of
Establishments, and the ECPC recommendation to withdraw OMB Statistical
Policy Directive No. 9, Standard Industrial Classification of
Enterprises in Part II; (3) included a list of title changes for NAICS
industries that clarify, but do not change, the existing content of the
industries in Part III; and (4) provided a comprehensive listing of
changes for national industries and their links to NAICS 2017
industries in Part IV.
II. Summary of Comments Received: Twenty-nine public comments were
received in response to the ECPC proposals presented in the July 2,
2021, Federal Register notice (86 FR 35350). The public comments
received are available for public view on <a href="http://www.regulations.gov">www.regulations.gov</a>. Comments
received were supportive of proposed changes, suggested changes that
the ECPC believed would be incompatible with the principles of NAICS or
with other proposals that were recommended, or were outside the scope
of the NAICS revision. Comments addressed numerous topic areas,
including:
<bullet> Employing the mode of delivery (online versus in store/
print) as an industry delineation criterion. OMB received very little
response in this topic area. One commenter supported the ECPC
recommended changes and a couple others indicated slight opposition,
citing decreased usefulness of some uses of the data.
The following two areas received the most public comments
<bullet> Biobased products manufacturing and renewable chemicals
manufacturing. Five commenters disagreed with the ECPC recommendations,
which were to create a Compost Manufacturing industry, to not create
any other new NAICS industries for biobased products manufacturers and
renewable chemicals manufacturers, and to create numerous North
American Product Classification System (NAPCS) product codes for these
areas. Some of these commenters noted the requirement in the 2018 Farm
Bill for the Department of Commerce and Department of Agriculture to
work together toward developing NAICS codes for these topic areas.
<bullet> Cannabis. Five commenters advocated for more cannabis-
specific industry classifications, and one commenter requested
alignment with Canada for these detailed industries.
No comments were received on the proposed update to Statistical
Policy Directive No. 8 or the elimination of Statistical Policy
Directive No. 9.
III. ECPC Recommendations: The ECPC reviewed the comments received
in response to the July 2, 2021, Federal Register notice. ECPC review
was guided by the NAICS classification principles and with
consideration of impacts on trilateral NAICS agreements with Canada and
Mexico, as these measures provide an important way in which to
coordinate the measurement of business activity across the three
countries. Detailed ECPC responses to each comment are available on the
NAICS website at <a href="http://www.census.gov/naics">www.census.gov/naics</a>.
Ultimately, the ECPC made no changes to its recommendations to OMB
for 2022 NAICS codes or titles. However, the ECPC did make some minor
revisions to its recommendations for Corresponding Index Entries.\1\
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\1\ A Corresponding Index Entry complements the definition of
the NAICS industry by providing specific, illustrative examples to
clarify the work that is captured in the NAICS industry.
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IV. Final Decisions: OMB considered the comments submitted in
direct response to the July 2, 2021, Federal Register notice and the
recommendations from the ECPC. OMB believes that the approach taken by
the ECPC for these revisions is responsive to the needs identified by
Federal statistical agencies and stakeholders more broadly, while
adhering to the longstanding principles governing updates to the NAICS.
In addition, OMB agrees with the ECPC approach for nascent industries
of introducing new product codes for NAPCS, in line with previous
practice.
Given the substantive comments received in opposition to the ECPC
recommendations for biobased products manufacturing and renewable
chemicals manufacturing, OMB is providing more explanation for its
decision to accept these ECPC recommendations. OMB understands the
importance of these growing topic areas; however, evidence to date
suggests that further delineating the relevant industries at this time
would risk the ability of Federal statistical agencies to publish
industry data at this granular level given the small size of the
potential industries. Further delineation would also jeopardize
existing time series' continuity. Instead, creating new product codes
for NAPCS allows Federal statistical agencies to begin collecting and
publishing more granular information about products relevant to these
topic areas, allowing Federal statistical agencies and stakeholders to
track the size and scope of these growing topic areas, which will help
inform any future relevant NAICS revisions. OMB believes creating new
product codes for NAPCS is an important initial step, and notes that
this approach aligns with past implementation for other nascent
industries. OMB also appreciates and
[[Page 72279]]
agrees with the ECPC about the importance of continued research and
stakeholder engagement on these topic areas toward maintaining a
relevant and objective statistical classification standard.
Therefore, OMB has decided to accept all ECPC recommendations
outlined in the July 2, 2021 Federal Register notice, making no changes
to the scope and substance of those recommendations.
Under the authority of the Budget and Accounting Procedures Act of
1950 (31 U.S.C. 1104(d)) and the Paperwork Reduction Act of 1995 (44
U.S.C. 3504(e)), OMB hereby announces its final decisions for adoption
of NAICS revisions for 2022; for its update of Statistical Policy
Directive No. 8, North American Industry Classification System:
Classification of Establishments; and for elimination of Statistical
Policy Directive No. 9, Standard Industrial Classification of
Enterprises.
Sharon I. Block,
Associate Administrator, Office of Information and Regulatory Affairs.
Statistical Policy Directive No. 8
North American Industry Classification System: Classification of
Establishments
The North American Industry Classification System (NAICS) is to be
used to classify reporting establishments by types of industrial
activity in which they are engaged. Details are presented in the North
American Industry Classification System, United States, issued by the
Office of Management and Budget, as amended and revised in the future.
Revisions are considered every five years in calendar years ending with
2 and 7.
1. Use for Federal Nonstatistical Program Purposes
NAICS shall not be used in the administration of any regulatory,
administrative, or tax program unless the Secretary (Administrator) has
first determined that the use of such industry definition is
appropriate to the implementation of the program's objectives. If the
term ``North American Industry Classification System'' (NAICS) is to be
used in the operative text of a statute or regulation to define
industry (or trade or commerce), language similar to the following
should be used to assure sufficient flexibility: ``An industry or
grouping of industries shall mean a North American Industry
Classification System industry or grouping of industries as defined by
the Office of Management and Budget subject to such modifications with
respect to individual industries or groupings of industries as the
Secretary (Administrator) may determine to be appropriate for the
purpose of this Act (regulation).'' The use, interpretation, and
application of NAICS for nonstatistical purposes is controlled by and
defined by the agencies or regulations that use the statistical
standard for those nonstatistical purposes.
2. Titles and Descriptions
The North American Industry Classification System, United States,
Manual includes titles and descriptions of the industries and an
alphabetic index of illustrative activities classified to industries.
It is available online at: <a href="http://www.census.gov/naics">www.census.gov/naics</a>.
[FR Doc. 2021-27536 Filed 12-20-21; 8:45 am]
BILLING CODE 3110-01-P
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