---
title: What are the principles of NAICS codes?
description: The NAICS code has 4 principles that it must adhere to when considering changes submitted on behalf of the establishments.
---

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# What are the principles of NAICS codes?

## The NAICS code has 4 principles that it must adhere to when considering changes submitted on behalf of the establishments.

Principle 1

NAICS is erected on a production-oriented conceptual framework. This means that producing units that use the same or similar production processes are grouped together in NAICS.

Principle 2

NAICE gives special attention to developing production-oriented classifications for (a) new and emerging industries, (b) service industries in general, and (c) industries engaged in the production of advanced technologies.

Principle 3

Time series continuity is maintained to the extent possible.

Principle 4

The system strives for compatibility with the two-digit level of the International Standard Industrial Classification of All Economic Activities (ISIC Rev. 4) of the United Nations

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