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NAICS Explained
NAICS is North American Industry Classification System. The United States, Canada, and Mexico agreed on this system of 2–6-digit codes to identify businesses and industries in a consistent way.
Why is a NAICS code needed?
If you are doing business in, or doing business with, the American, Canadian or Mexican companies, you need to know the NAICS code applicable to your products/services for quoting in the documentation.
What's with 2 to 6 digits?
Longer the code, more specific is the segment/category it represents. A broad 2-digit code progressively becomes more specific as more digits, up to 6, are added to it.
| Code | Title | Segment |
|---|---|---|
| 11 | Agriculture, Forestry, Fishing and Hunting | Economic sector |
| 111 | Crop Production | Economic Subsector |
| 1111 | Oilseed and Grain Farming | Industry group |
| 11111 | Soybean Farming | NAICS industry |
| 111110 | Soybean Farming | National industry |
What's with digits 5 and 6?
Up to 5 digits, there is complete agreement among the United States, Canada, and Mexico. Sixth digit is where each country can have their own additional detail. If the sixth digit is zero, this means the titles for the fifth and sixth digit are the same, as is the case with Soybean Farming.
NAICS Explained
NAICS is North American Industry Classification System. The United States, Canada, and Mexico agreed on this system of 2–6-digit codes to identify businesses and industries in a consistent way.
Why is NAICS code needed?
If you are doing business in, or doing business with, the American/Canadian or Mexican companies, you need to know the NAICS code applicable to your products/services to quote in the documentation.
What's with 2 to 6 digits?
Longer the code, more specific is the category it represents. A broad 2-digit code progressively becomes more specific as more digits, up to 6, are added to it.
| Code | Title | Category |
|---|---|---|
| 11 | Agriculture, Forestry, Fishing and Hunting | Economic sector |
| 111 | Crop Production | Economic Subsector |
| 1111 | Oilseed and Grain Farming | Industry group |
| 11111 | Soybean Farming | NAICS industry |
| 111110 | Soybean Farming | National industry |
What's with digits 5 and 6?
Up to 5 digits, there is complete agreement among the United States, Canada, and Mexico. Sixth digit is where each country can have their own additional detail. If the sixth digit is zero, this means the titles for the fifth and sixth digit are the same, as is the case with Soybean Farming.