Learn About NAICS Codes – Encamp

The North American Industry Classification System (NAICS) is a standardized framework used to classify businesses and industries in the United States, Canada, and Mexico. Developed in 1997 (and most recently updated in 2022), NAICS codes replaced the Standard Industrial Classification (SIC) system to provide a more consistent and accurate way of analyzing and comparing economic data.

In this article, we will discuss the importance of NAICS codes, how they are structured, how they relate to EPCRA Tier II reporting, and how you can find your facility's NAICS code.

Importance of NAICS Codes

NAICS codes serve a variety of purposes, including:

Facilitating the collection and analysis of economic data

Allowing for the comparison of business statistics across North America

Enabling government agencies to monitor industry trends and growth patterns

Assisting businesses in identifying potential markets and competitors

NAICS Code Structure

Each NAICS code is a six-digit number, with each digit representing a different level of specificity. The structure is as follows:

The first two digits represent the economic sector (e.g., 23 for Construction)

The third digit represents the subsector (e.g., 236 for Construction of Buildings)

The fourth digit represents the industry group (e.g., 2361 for Residential Building Construction)

The fifth digit represents the NAICS industry (e.g., 23611 for Residential Building Construction)

The sixth digit represents the national industry (e.g., 236115 for New Single-Family Housing Construction)

NAICS Codes and EPCRA Tier II Reporting

The Emergency Planning and Community Right-to-Know Act (EPCRA) requires facilities to report the storage and release of specific hazardous chemicals. NAICS codes play an essential role in EPCRA Tier II reporting by helping to identify the primary business activity of a facility. When submitting Tier II reports, facilities are required to provide their NAICS code, which assists regulatory agencies in understanding the types of industries that handle hazardous materials and enables better emergency planning and response.

In some states NAICS codes can also impact the amount of reporting fees that are assessed.

Find Your NAICS Code

You can find the North American Industry Classification System (NAICS) code that applies to your business by using the NAICS search tool provided by the U.S. Census Bureau.

To use the search tool, go to the Census Bureau's NAICS main page, and click on "2022 NAICS Search" in the left-hand menu. In this field, you can either enter a keyword related to your business in the search bar or browse through the NAICS code hierarchy to find the code that best describes your business activity.

Conclusion

In conclusion, understanding and selecting the correct NAICS code is an essential step in ensuring accurate and compliant EPCRA Tier II reporting. By providing a consistent classification system, NAICS codes allow regulatory agencies to better understand industry trends and facilitate effective emergency planning and response efforts.