What is a NAPCS Code?

The North American Product Classification System (NAPCS) is a demand oriented product classification system designed by the statistical agencies of the United States, Mexico, and Canada. The initiative was launched in February, 1999 to complement the supply oriented North American Classification System (NAICS). The entire NAPCS system has not been finalized and is currently a work-in-progress. 



Goal of NAPCS

To develop a demand based classification system for products (goods and services) linked to the NAICS industry structure that is consistent across the USA, Mexico, and Canada, that will improve the identification and classification of service products.



Objectives of NAPCS

  • NAPCS will define, identify, and classify the final outputs produced and transacted by the reporting units in each industry

  • Products will be grouped according to how they are used and according to how they are used in relationship to each other in satisfying that principal use

  • NAPCS contains a full list of all products produced in the USA, Canada, and Mexico

  • To aid in the collection of data from the NAICS business reporting units

  • NAPCS will link and cross-reference to NAICS and the Central Product Classification System (CPC)



How to Read a NAPCS Code?

Example: Consulting services for graphic design

1

2

3

 4         5        6

        7                                       8

      9



Industry Subject Area



Working Group Code



Tri-lateral Detail

National

Product

Detail


United States




Can



Mex



US



Title



Definition

NAICS Industries Producing the Product

541143

1.10

X




Consulting services for graphic design

Providing advice and guidance on graphic design issues.


Excludes:

  • Consulting services bundled with graphic design projects are in products 1.1 – 1.9, depending on type of project.

541430


Each list consists of a table containing nine columns that display the following information:

  • Column 1 - Industry Subject Area: The codes in this column identify the scope of the NAICS and US national industries whose products are covered by the given product list. 

  • Column 2 - Working Group Code: The codes in this column are interim/unofficial product codes assigned by the three-country working group solely to organize the products contained in the product list.

  • Column 3 - Trilateral Detail: An X in this column for a product identifies the level of product detail that the three countries have provisionally agreed to identify in common and presently anticipate publishing comparable data for.

  • Columns 4-6 - National Product Detail: An X in one or more of these columns for a product indicates that it is a component of a trilateral product but is at a level of detail that is of interest only to the country or countries whose country column contains the X.

  • Column 7 - US Title: Provides the US title for each product and product aggregate in the list.

  • Column 8 - US Definition: Provides the US definition for each product and product aggregate in the list.

  • Column 9 - NAICS Industries Producing the Products: This column shows the NAICS codes of the industries provisionally identified by each country to be producers of the product in that country.



NAPCS History

  • Phase I was launched in early 1999 to explore the feasibility of identifying and defining service products across the three countries, and it focused on the products produced by industries in four NAICS service sectors

  • Phase II, launched in July 2001, extended NAPCS to the industries in five additional NAICS service sectors

  • Phase III was launched in May 2004, and it extended NAPCS to industries not covered in the sectors addressed under Phases I and II. Taken together, Phases II and III researched the final products produced by more than 250 US service industries

  • February 2010 update displays all 102 finalized product lists that resulted from Phases I -III of NAPCS, with 98 designated as trilateral, 3 as bilateral (US, Mexico), and one as US-only

  • Current: Plans for extending NAPCS to include the products of industries in NAICS Sector 11; Sector 21; Sector 23; Sector 31-33; Sector 42; and Sector 44-45 are presently underway by the three countries


Timeline




What is NAPCS used for?

  • NAPCS will define, identify, and classify the final outputs produced and transacted by the reporting units in each industry

  • NAPCS contains a full list of all products produced in the USA, Canada, and Mexico

  • Products will be grouped according to how they are used and according to how they are used in relationship to each other in satisfying that principal use

  • To aid in the collection of data from the NAICS business reporting units

  • NAPCS will link and cross-reference to NAICS and the Central Product Classification System (CPC)


For more information: The United States Census Bureau (www.census.gov)