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What is naics code?
The North American Industry Classification System, or NAICS, is a system of classifying businesses based on their economic operations (process of production). In Canada, Mexico, and the United States, it is used by government and business. Except for some government agencies, such as the US Securities and Exchange Commission, it has largely replaced the older Standard Industrial Classification (SIC) scheme.
Naics code history
NAICS was developed under the auspices of the Office of Management and Budget (OMB), and adopted in 1997 to replace the Standard Industrial Classification (SIC) system. It was developed jointly by the U.S. Economic Classification Policy Committee (ECPC), Statistics Canada, and Mexico's Instituto Nacional de Estadistica y Geografia, to allow for a high level of comparability in business statistics among the North American countries. With the first version, released in 1997, NAICS offered enhanced coverage of the service sector, relative to SIC. The 2002 revision accommodated significant changes in the Information Sector. The 2012 revision slightly reduced the number of industries and modified six sectors.
Naics code structure/aggregation levels
|Digit designation||Aggregation level||example|
|2||Sector||11-agriculture, forestry, fishing and hunting|
|4||Industry group||1111-oilseed and grain farming|
|6||National industry||111140-wheat farming|